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    Fluence Commences U.S. Manufacturing Onshoring of Battery Storage Modules

    Sept. 10, 2024
    Image of Cube credit Fluence Energy
    66e09c855c5f183d9015ce48 Fluence

    Fluence Energy, the energy storage supplier jointly formed by AES and Siemens that now stands alone as a publicly traded company, has begun domestic manufacturing of its battery modules at a plant in Utah.

    The onshoring of the lithium battery module manufacturing footprint will help Fluence tighten the supply chain for energy transition projects in the U.S. and North America. The module will be incorporated with battery cells manufactured in Tennessee, the company reported.

    The move also comes ahead of Trade Act Section 301 tariff increases planned next year for batteries imported from China, one of the world’s biggest suppliers of energy storage components. Fluence also has operations in Europe. 

    Two years ago, Fluence announced it was shifting production of its Cube battery storage product to a Utah site operated by a contract manufacturer. The company opened a battery storage testing facility in Pennsylvania two years ago.

    “Our proactive approach to securing U.S.-manufactured battery cells and rapid initiation of module production has provided us with an advantage in delivering a storage solution that allows our customers to capture the Inflation Reduction Act’s domestic content bonus tax credit,” John Zahurancik, Fluence President, Americas, said in today’s announcement. “We are moving quickly to deliver domestically manufactured energy storage solutions that meet our customers’ needs, reduce supply chain risks for projects, and support the nation’s energy independence.”

    Incentives for onshoring provided by federal legislation such as the Inflation Reduction Act during the Biden Administration has attracted billions of new investments on domestic manufacturing sites. In addition to Fluence, energy transition firms which have accelerated investment in U.S.-sited plants include Cummins, LG Energy Solution, ABB and Schneider Electric.

    Earlier this summer, Fluence announced a deal with renewable technology investor Excelsior Energy Capital to install 2.5 GW of energy storage capacity in the U.S. beginning 2025. Fluence recently reported a record order intake of $1.3 billion for the fiscal quarter ending June 30.

    Siemens and AES Corp. spun off some of their energy storage assets to jointly create Fluence in 2017. The new joint venture was separated and raised close to $1 billion when it joined the stock market through an initial public offering in late 2021.

     

    About the Author

    Rod Walton, EnergyTech Managing Editor | Senior Editor

    For EnergyTech editorial inquiries, please contact Managing Editor Rod Walton at [email protected].

    Rod Walton has spent 15 years covering the energy industry as a newspaper and trade journalist. He formerly was energy writer and business editor at the Tulsa World. Later, he spent six years covering the electricity power sector for Pennwell and Clarion Events. He joined Endeavor and EnergyTech in November 2021.

    Walton earned his Bachelors degree in journalism from the University of Oklahoma. His career stops include the Moore American, Bartlesville Examiner-Enterprise, Wagoner Tribune and Tulsa World. 

    EnergyTech is focused on the mission critical and large-scale energy users and their sustainability and resiliency goals. These include the commercial and industrial sectors, as well as the military, universities, data centers and microgrids. The C&I sectors together account for close to 30 percent of greenhouse gas emissions in the U.S.

    He was named Managing Editor for Microgrid Knowledge and EnergyTech starting July 1, 2023

    Many large-scale energy users such as Fortune 500 companies, and mission-critical users such as military bases, universities, healthcare facilities, public safety and data centers, shifting their energy priorities to reach net-zero carbon goals within the coming decades. These include plans for renewable energy power purchase agreements, but also on-site resiliency projects such as microgrids, combined heat and power, rooftop solar, energy storage, digitalization and building efficiency upgrades.

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