Fluence opens battery enclosure and system hardware manufacturing plant in Arizona

Energy storage leader Fluence has commenced production at a new manufacturing facility in Goodyear, Arizona, furthering its strategy to build a domestic supply chain for grid-scale battery storage systems. The facility will produce steel enclosures and battery management system (BMS) hardware for the company’s utility-scale energy storage products.

The Arizona plant Fluence’s promised efforts to onshore production of major components for battery energy storage systems (BESS) serving US demand. Like many companies in the energy sector, Fluence has been working to decrease dependence on overseas suppliers amid global trade tensions and supply chain disruptions.

Fluence is now utilizing manufacturing facilities across Arizona, Texas, Tennessee, and Utah to source cells, modules, enclosures, thermal management systems, and battery management systems. The company’s inverter supplier operates from South Carolina. According to Fluence, these manufacturing partnerships represent roughly $700 million in investment and will create approximately 1,200 manufacturing jobs and 450 construction positions in 2025.

“By expanding our access to U.S. manufacturing, we’re helping our customers navigate complex global supply chain risks,” said John Zahurancik, president of Fluence Americas, in the company’s announcement.

The shift toward domestic production was already underway before the recent political emphasis on American manufacturing. Last September, Fluence opened a battery module factory in Utah and has begun sourcing approximately half of its cells for US projects from AESC’s Tennessee factory, with the remainder still imported from Asian suppliers.

This manufacturing expansion comes as the American Clean Power Association announced the US energy storage industry’s commitment to invest $100 billion into American-made grid batteries by 2030. While ambitious, this target faces significant challenges including competition from established Asian manufacturers and potential material supply constraints.

Fluence, which currently has 20 GW of battery energy storage capacity deployed or contracted across more than 80 US projects, is one of several companies adjusting their supply chains to address both business concerns and shifting political priorities. Whether these domestic manufacturing initiatives will meaningfully impact battery storage economics or project timelines remains to be seen.