Rivian and Redwood Materials Deploy 10 MWh Second-Life Battery System Using 100+ EV Packs at Illinois Plant

Rivian and Redwood Materials have announced a new energy storage partnership that will deploy what they describe as the largest repurposed battery energy storage system for a U.S. automotive manufacturer. The project will use more than 100 second-life Rivian battery packs at Rivian’s Normal, Illinois manufacturing facility, initially delivering 10 megawatt-hours of dispatchable energy.

The significance of the project goes beyond a single factory installation. It shows how electric vehicle batteries can continue creating value after vehicle use by being redirected into stationary energy systems that support industrial operations, lower energy costs, and reduce strain on the grid. In practical terms, Rivian is turning part of its battery ecosystem into an operational energy asset for manufacturing.

 

Second-life batteries are moving from theory to industrial use

 

Under the partnership, Rivian will provide EV battery packs to Redwood, which will integrate them into a Redwood Energy system supported by the company’s Redwood Pack Manager technology. The stored power will then be used on-site at Rivian’s plant, especially during periods of high electricity demand.

That matters because second-life battery use has often been discussed as a future opportunity, but large-scale commercial deployments have remained relatively limited. This project gives a clearer example of how battery packs designed for vehicles can be used again in fixed energy applications before they are ultimately recycled. It also strengthens the argument that the battery value chain does not end when a vehicle leaves the road.

 

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Manufacturing cost and grid resilience are both part of the business case

 

The initial 10 MWh system is designed to reduce peak demand pressure and help Rivian avoid more expensive electricity purchases during high-load periods. At the same time, it is expected to support grid reliability by lowering the plant’s demand on the power system when stress is highest.

This dual benefit is important. The system is not being framed only as a sustainability initiative. It is also being positioned as a cost management and energy resilience tool. That reflects a broader shift in industrial decarbonisation, where clean energy and storage projects increasingly need to deliver operational and financial value alongside emissions benefits.

 

Battery reuse is becoming a strategic domestic energy resource

 

Redwood is clearly positioning retired EV batteries as a larger energy opportunity in the United States. The company argues that the country already has a growing stock of battery assets that can be turned into dispatchable power resources more quickly than waiting for entirely new infrastructure to be built. By using proven battery packs already in the market, the deployment model can move faster and with lower material intensity than building every storage system from newly manufactured batteries alone.

This has broader implications as electricity demand continues to rise across manufacturing, electrification, and digital infrastructure. If second-life batteries can be deployed at scale, they could become an important bridge between vehicle electrification and wider grid flexibility, while also reducing pressure on new battery supply chains.

 

Circularity is becoming more commercially relevant in EV manufacturing

 

The project also highlights a more mature view of battery circularity. In many cases, circular economy discussions stay focused on recycling alone. This partnership expands that logic by showing that reuse can create another stage of economic and operational value before materials are recovered.

That makes the Rivian-Redwood partnership strategically important. It links EV production, battery lifecycle management, industrial power needs, and future recycling into one connected model. Instead of treating end-of-vehicle batteries as waste or only as future recycling feedstock, the companies are treating them as a live energy resource with immediate industrial application.

 

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The scale of future storage demand supports the model

 

The companies also tied the announcement to the wider storage challenge in the U.S. energy system. With electricity demand expected to rise sharply, the market will need far more energy storage to manage peaks, support reliability, and power new industrial growth. In that context, second-life EV batteries could become an increasingly useful source of near-term storage capacity.

For Rivian, this gives the company a way to extend the usefulness of its battery technology while improving the performance of its own manufacturing operations. For Redwood, it strengthens its role not only as a recycling and materials company, but as a broader battery lifecycle and energy infrastructure player.

 

What the partnership signals

 

The larger takeaway is that EV battery economics are expanding beyond the vehicle itself. This partnership suggests the next phase of electric mobility may be shaped not only by how batteries power transportation, but by how they support factories, grids, and industrial energy systems after vehicle use.

If this model scales, it could help redefine how automakers and battery companies think about lifecycle value. The battery pack would no longer be seen as a single-use transport component followed by recycling. Instead, it could become part of a multi-stage energy system that supports mobility first, stationary storage second, and materials recovery at the end.