Rivian has partnered with Redwood Materials to roll out a large-scale second-life EV battery storage system at its manufacturing plant in Normal. The project marks a major step forward in reusing electric vehicle batteries to support industrial energy needs while easing pressure on the power grid.
The new system will initially use more than 100 retired Rivian battery packs to provide 10 megawatt-hours (MWh) of dispatchable energy at Rivian’s Illinois factory. The stored power will help lower operating costs by reducing electricity purchases during peak demand periods, while also supporting grid stability.
Under the agreement, Rivian will supply used EV battery packs to Redwood Materials, which will integrate them into a Redwood Energy storage system. The setup will be managed through Redwood’s Pack Manager technology, enabling safe and efficient use of second-life batteries on-site.
This approach offers a practical solution for manufacturers facing rising energy costs and grid constraints. By repurposing proven EV batteries instead of relying solely on new infrastructure, energy storage capacity can be deployed faster and more cost-effectively.
The partnership also highlights the growing value of second-life EV batteries. While electric vehicle batteries are designed to last for hundreds of thousands of miles, many still retain significant usable capacity even after a vehicle reaches the end of its road life. That makes them well-suited for stationary energy storage applications.
For Rivian, the system adds flexibility during periods of high electricity demand, such as summer heat waves or other grid stress events. Stored energy can be instantly dispatched to reduce strain on the local power system and help avoid costly peak electricity rates.
The project comes as U.S. electricity demand is expected to rise sharply over the next decade, driven by industrial expansion, electrification, and AI-related infrastructure growth. Industry estimates suggest the country could need more than 600 GWh of energy storage capacity by 2030 to meet peak demand and maintain grid reliability.
By extending the useful life of EV battery packs before recycling, Rivian and Redwood are advancing a scalable model for domestic energy resilience. The initiative could help reduce dependence on imported storage systems, delay expensive grid upgrades, and make better use of battery assets already in circulation.
For the broader EV industry, the Rivian-Redwood partnership underscores how electric vehicles can deliver value far beyond transportation — becoming a critical part of the future energy ecosystem.
[source: Redwood Materials]
