A method of managing an energy storage system that includes a plurality of smart energy storage cells, and a related method of operation for said smart cells. The cells are arranged into a two-dimensional array, and at least one management unit for controlling and monitoring the smart cells is coupled to the array. The smart cells and management units engage in wireless communication that has relatively short range and is relatively directional, with the direction being electronically-steerable in the plane of the array. The management method assigns direction codes to each smart cell which the cells utilize to steer the directions of their communication links, thereby organizing the smart cells into a plurality of serially-linked communication networks. The methods include steps for automatically determining the size and arrangement of the array, including the orientation of each smart cell. The methods also include steps for automatically reorganizing the network links in response to any cell or management unit failing to communicate, thereby making the energy storage system highly fault-tolerant and extremely reliable.