Stem, Inc. (NYSE: STEM) and Nuvation Energy announced a co‑marketing agreement to promote a fully North American‑made battery energy storage system (BESS) control stack that combines Stem’s PowerTrack Energy Management System (EMS) and Unit Controller with Nuvation’s Battery Management System (BMS). The partnership is designed to offer customers a turnkey control solution that integrates Stem’s AI‑driven optimization software with Nuvation’s hardware‑agnostic battery management platform.
The deal is strategically significant because it aligns with the growing demand for domestically sourced and secure energy infrastructure in North America. Regulatory tailwinds, such as Foreign Entity of Concern (FEOC) restrictions and the Inflation Reduction Act’s domestic content bonus, are driving developers and asset owners to seek North American‑made control architectures. By combining Stem’s software with Nuvation’s UL 1973‑recognized BMS, the two companies aim to deliver a solution that meets both regulatory requirements and performance expectations while expanding Stem’s reach into the BESS market, which is projected to reach USD 50.02 billion by 2031 and grow at a CAGR of 15.87% from 2026.
Stem’s recent financial performance provides context for the partnership. In Q4 2025, the company reported revenue of $47.2 million, beating the consensus estimate of $39.05 million, and an earnings per share of –$1.88 versus an estimate of –$2.24, a beat of $0.36. The quarter’s revenue decline of 15% versus Q4 2024 was offset by a 62% year‑over‑year increase in software, services, and edge hardware revenue. Net loss for the quarter improved to $16.0 million from $51.1 million in Q4 2024, while the full‑year 2025 net income of $137.8 million marked a dramatic turnaround from the $854.0 million loss reported in FY 2024.
Management highlighted the partnership’s value. Matt Tappin, President of Software at Stem, said, “Customers are asking for greater transparency, control and confidence in the technologies deployed across their energy assets. This collaboration will allow us to deliver a more integrated solution that directly addresses those priorities, while enhancing system performance, reliability of the system, and long‑term value for our customers.” Michael Worry, CEO/CTO at Nuvation Energy, added, “By combining Nuvation’s battery management system with Stem’s energy management platform, we are delivering a solution where the critical control electronics are North American designed and manufactured.”
The co‑marketing agreement positions Stem to capitalize on the expanding BESS market while addressing current headwinds. The company’s stock has fallen 47% over the past six months, and revenue has slipped in the most recent quarter, but the partnership’s focus on domestic manufacturing and regulatory compliance could help Stem capture new customers and strengthen its competitive position in a market that is increasingly sensitive to supply‑chain security and domestic content requirements.
The partnership represents a strategic pivot for Stem, expanding its product portfolio into a high‑growth segment and reinforcing its commitment to North American manufacturing. While the company continues to navigate market headwinds, the collaboration with Nuvation Energy provides a clear path to growth in a sector that is poised for significant expansion over the next decade.
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