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As the need for energy storage increases on future hybrid electric vehicles, the desire for increased performance, energy/power densities, and component life increases proportionally. Flywheel batteries have demonstrated power density and life superiority over conventional chemical batteries; however, fears of unexpected and uncontained failures may prevent their widespread acceptance in the United States marketplace. The University of Texas at Austin Center for Electromechanics (UT-CEM) has designed, built, and tested a full-scale composite flywheel containment system for use in mobile applications. The flywheel containment system that will be described stems from an in-depth investigation into the type of faults that are most likely to occur in mobile applications. In all cases, the worst-case scenario results in a challenge to flywheel integrity; therefore, a comprehensive flywheel containment system is considered the “last line of defense” in protecting personnel and equipment.