Rivian has announced a new partnership with Redwood Materials to deploy a battery energy storage system at its manufacturing facility in Normal, Illinois, using repurposed electric vehicle (EV) battery packs.
As part of the deal, Rivian will deploy a large-scale battery energy storage system at its manufacturing plant in Normal, Illinois. The project will use more than 100 second-life battery packs pulled from Rivian vehicles, repurposed into a stationary system capable of delivering 10 megawatt-hours (MWh) of energy.
That energy won’t just sit idle. Instead, it will be used strategically during periods of peak electricity demand, helping Rivian reduce its reliance on expensive grid power while also easing strain on the broader electrical system.
Redwood, founded by former Tesla co-founder JB Straubel, will handle the integration using its proprietary Pack Manager technology, which allows these retired EV batteries to function as a cohesive, dispatchable energy resource. The system is also designed to scale, opening the door for significantly larger deployments in the future.
“EVs represent a massive, distributed and highly competitive energy resource,” said Rivian CEO RJ Scaringe. “As energy needs grow, our grid needs to be flexible, secure, and affordable. Our partnership with Redwood enables us to utilize our vehicle’s batteries beyond the life of a vehicle and contribute to grid health and American competitiveness.”
The concept itself is relatively simple. Even after they’re no longer ideal for use in vehicles, EV batteries often retain a significant portion of their original capacity. Rather than sending them straight to recycling, companies like Redwood are finding ways to extend their lifespan in stationary applications.
The timing of the project comes as electricity demand in the U.S. is rising quickly, driven in part by energy-intensive technologies like AI data centers and increased electrification. According to Redwood, the country could require more than 600 gigawatt-hours (GWh) of energy storage by 2030 to manage peak demand and maintain grid stability—roughly equivalent to the output of the Hoover Dam running continuously for two months.
“Electricity demand is accelerating faster than the grid can expand, posing a constraint on industrial growth,” said JB Straubel. “At the same time, the massive amount of domestic battery assets already in the U.S. market represents a strategic energy resource. Our partnership with Rivian shows how EV battery packs can be turned into dispatchable energy resources, bringing new capacity online quickly, supporting critical manufacturing, and reducing strain on the grid without waiting years for new infrastructure. This is a scalable model for how we add meaningful energy capacity in the near term.”
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