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.