Manufacturing
Fluence launches 35 GWh battery factory in Vietnam
Fluence is significantly expanding its manufacturing footprint in Vietnam following delays in scaling its new production facilities in the US.
By
Marija Maisch
Aug 21, 2025
Industry
Manufacturing
Image: Fluence
Fluence, the joint venture between Siemens and AES Corporation, and Korean-based ACE Engineering have opened a new, automated battery energy storage production facility in Bac Giang Province, Vietnam. The site is designed to manufacture Fluence’s energy storage solutions, including Gridstack Pro and Smartstack.
The facility boasts a projected annual manufacturing capacity of 35 GWh. It marks a major expansion of Fluence’s manufacturing capabilities in response to the growing global demand.
“This facility builds on our deep strategic relationship with ACE Engineering, taking us to the next level of manufacturing excellence,” said Julian Nebreda, President and CEO at Fluence. “By combining advanced automation with rigorous quality standards, we believe we are optimally situated to meet stringent customer requirements and deliver competitively at the speed and scale the market demands.”
As of June 30, 2025, Fluence deployed 6.3 GW/16.7 GWh of energy storage systems. Its contracted backlog stands at 8.2 GW, according to its third quarter 2025 results. Its pipeline of proposed and under construction projects amounts to 35.7 GW/114.3 GWh.
Fluence had long relied on contract manufacturing in Vietnam to produce its energy storage systems, before shifting its focus to the US in a bid to offer solutions that qualify for the Inflation Reduction Act’s domestic content bonus tax credit.
In September 2024, the company started building battery energy storage modules at its facility in Utah, incorporating battery cells manufactured in Tennessee.
Previously, Fluence supplied enclosures from its Utah facility, such as the ones installed at the operational Eleven Mile Solar Center project in Arizona, which features a 300 MW solar plant colocated with a 300 MW battery storage system.
In May 2025, the company commenced production at a new manufacturing facility in Goodyear, Arizona, advancing its strategy to build a US domestic supply chain for grid-scale battery storage systems. The facility is eqipped to produce steel enclosures and battery management system (BMS) hardware for its utility-scale energy storage products.
In its Q3 2025 results, Fluence reaffirmed its fiscal year 2025 revenue guidance range of $2.6 billion to $2.8 billion, while noting it expects to land at the lower end of that range due to a slower than expected production ramp up at its recently commissioned US manufacturing facilities.
Although the delay has shifted some anticipated revenue into the next fiscal year, the company expects these facilities to reach targeted capacity by year-end, ensuring on-time customer deliveries.
“We anticipate recovering this revenue in fiscal 2026 as these facilities reach their targeted production levels. We believe the fundamentals of our business remain incredibly strong, supported by a robust backlog, of which we expect approximately $2.5 billion to convert to revenue in fiscal 2026, including contracts signed in July and August to date,” Nebreda said.
ess-news.com |
