Fluence Energy, Inc. has entered an agreement with Avantus to provide its advanced Smartstack energy storage solution and turnkey Engineering, Procurement, and Construction (EPC) services for the Rexford 2 project. Located in Tulare County, California, the project will feature a 200 MW / 800 MWh battery energy storage system paired with a solar facility. Once operational, the system is expected to deliver firm, on-demand capacity to the California grid, sufficient to power 84,000 Southern California homes with clean, reliable energy.

Fluence will deploy its 4-hour duration Smartstack system incorporating U.S. domestic content, utilizing its network of partner manufacturing facilities in states including Utah, South Carolina, and Texas. Key components such as battery cells, modules, enclosures, and thermal management systems will be produced at these locations. By drawing on this U.S.-based manufacturing network, the project aims to support the continued advancement of domestically produced energy storage technology.

Project Details and Impact

The Rexford 2 project is expected to create more than 500 union jobs at peak construction, in addition to permanent local operations roles. It is projected to generate hundreds of millions of dollars in local tax revenue for Tulare County, supporting public services and infrastructure. Additionally, the project will be constructed on previously disturbed land to minimize environmental impacts.

Executive Commentary

John Zahurancik, Chief Customer Success Officer at Fluence, stated that delivering a project of this magnitude requires deep expertise to help ensure long-term performance. He emphasized that by combining end-to-end EPC capabilities with the advanced, U.S.-built Smartstack solution, Fluence is streamlining deployment for Avantus. He added that the company is proud to leverage its proven track record to build a highly reliable and flexible power foundation for California’s energy future.

Tony Frontino, Executive Vice President of Strategic Sourcing and Asset Management at Avantus, noted that providing affordable, reliable clean energy solutions at scale requires the right partners. He expressed that the work with Fluence on Rexford 2 will strengthen the grid, build domestic supply chains, and bring much-needed energy capacity to California.

GLJ Research analyst Gordon L. Johnson has initiated coverage on Fluence Energy, assigning the stock a Buy rating and establishing a price target of $26. The rating highlights a positive outlook for the company's performance.

The coverage initiation provides a specific valuation benchmark for investors, with the $26 target representing the firm's projected upside. Fluence Energy trades on the NASDAQ under the ticker symbol FLNC.

Analyst Details