Fluence Energy (NASDAQ:FLNC) advanced 4% in after-hours trading Monday after the company disclosed an agreement with Avantus to provide energy storage systems and turnkey Engineering, Procurement, and Construction services for the Rexford 2 project in Southern California.
Under the deal, Fluence will deploy its Smartstack energy storage architecture for a system sized at 200 MW / 800 MWh. The battery installation will be paired with an adjacent solar facility located in Tulare County, California, and the energy storage asset is designed around a 4-hour duration Smartstack configuration that the company says will include U.S. domestic content.
The plan calls for use of Fluence’s network of partner manufacturing facilities in Utah, South Carolina, and Texas. Those sites are identified as the production locations for key components including battery cells, modules, enclosures, and thermal management systems.
Projected grid benefits and local economic impacts are part of the announcement. Once commissioned, Rexford 2 is expected to supply capacity to the California grid equivalent to powering 84,000 Southern California homes. During peak construction the project is expected to create more than 500 union jobs, and it will support a set of permanent local operations positions after completion.
Local public finances are also highlighted in the agreement: the project is projected to generate hundreds of millions of dollars in local tax revenue for Tulare County. The construction schedule outlined in the company’s statement anticipates breaking ground in 2027, with commercial operation targeted for late 2028.
Summary
Fluence’s engagement with Avantus to deliver a 200 MW / 800 MWh Smartstack system for Rexford 2 links its U.S.-sourced manufacturing network to a major California solar-plus-storage deployment. The announcement was accompanied by an immediate positive market reaction in after-hours trading.
Key points
- Contract with Avantus covers supply of energy storage systems and turnkey EPC services for the Rexford 2 project in Tulare County, California.
- The system will be a 200 MW / 800 MWh Smartstack with a 4-hour duration and will incorporate U.S. domestic content produced at partner facilities in Utah, South Carolina, and Texas.
- Rexford 2 is expected to power the equivalent of 84,000 Southern California homes, create more than 500 union jobs at peak construction, and generate substantial local tax revenue.
Risks and uncertainties
- The project schedule is forward-looking: construction is expected to begin in 2027 and commercial operation is targeted for late 2028, creating timing uncertainty until milestones are reached.
- The plan depends on production at partner manufacturing facilities in Utah, South Carolina, and Texas to deliver required components and U.S. domestic content.
- Projected benefits such as the number of jobs at peak construction and anticipated local tax revenues are estimates tied to the project’s successful delivery and operation.
Market reaction to the announcement was immediate in the after-hours session, where Fluence shares climbed 4% following the release of the agreement details. The contract connects a sizable battery resource with a solar installation and sets an expected two-year construction-to-operation horizon based on the timeline provided.