Fluence Energy Shares Rise on Southern California Battery Storage Deal

Shares of Fluence Energy (NASDAQ:FLNC) climbed 4% in after-hours trading Monday following the announcement of a significant agreement with energy developer Avantus for a project in Southern California.

The deal positions Fluence as a key supplier for the Rexford 2 project, located in Tulare County, which pairs a solar facility with a large-scale battery energy storage system (BESS).

Project Details

Under the agreement, Fluence will provide its Smartstack energy storage solution and turnkey Engineering, Procurement, and Construction (EPC) services. The project specifies a 200 MW / 800 MWh BESS, designed for a 4-hour duration to help stabilize the California power grid.

Fluence noted that the system will incorporate U.S. domestic content, utilizing its network of partner manufacturing facilities in Utah, South Carolina, and Texas. These facilities produce key components, including battery cells, enclosures, and thermal management systems.

Economic and Grid Impact

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Once operational, the Rexford 2 project is expected to deliver enough capacity to power approximately 84,000 homes in Southern California. The project is also projected to have a significant local economic impact.

According to the announcement, construction is anticipated to create more than 500 union jobs at its peak and will also establish permanent local operations roles. The project is forecast to generate hundreds of millions of dollars in tax revenue for Tulare County over its lifetime.

Timeline and Outlook

The companies have set a clear timeline for the project's development. Construction is scheduled to begin in 2027, with the facility targeted to achieve commercial operation by late 2028. This contract reinforces Fluence's role in the ongoing build-out of energy storage infrastructure needed to support renewable energy adoption.