Rivian: How Used EV Batteries can Power Factories
A Rivian manufacturing facility in Illinois is set to use a battery energy storage system constructed from more than 100 second-life battery packs sourced from its EVs.
This collaboration with Redwood Materials could deliver 10 megawatt-hours of dispatchable energy capacity to the plant in Normal.
The installation is expected to become the largest repurposed battery energy storage system deployed at a US automotive manufacturing site.
Demand for energy storage solutions has grown as battery manufacturers respond to requirements from emerging technologies, including AI applications.
Second-life batteries for manufacturing
Redwood Materials will operate the system using its Redwood Pack Manager technology. The stored energy will be available for on-site consumption at the facility.
This deployment aims to lower costs during periods of high grid demand. The approach enables energy capacity to be installed quickly at sites with elevated consumption patterns.
RJ Scaringe, Founder and Chief Executive Officer at Rivian, says: "EVs represent a massive, distributed and highly competitive energy resource.
"As energy needs grow, our grid needs to be flexible, secure and affordable. Our partnership with Redwood enables us to utilise our vehicle's batteries beyond the life of a vehicle and contribute to grid health and American competitiveness."
Peak demand periods such as heat waves could see Rivian deploy stored energy from the second-life batteries. This could reduce electricity purchases and limit additional strain on the power system.
Global storage capacity requirements
According to the International Energy Agency, 1,500 GW of energy storage capacity will be needed globally by 2030. Battery manufacturers have responded to growing demand by adjusting production priorities.
JB Straubel, Founder and Chief Executive Officer at Redwood Materials, says: "Electricity demand is accelerating faster than the grid can expand, posing a constraint on industrial growth.
"At the same time, the massive amount of domestic battery assets already in the US 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."
Transitioning battery packs into stationary energy assets before recycling could extend their operational life and reduce dependence on imported energy storage systems.
Manufacturing capacity and industry trends
According to the Solar Energy Industries Association, lithium-ion battery cell manufacturing for stationary electricity storage applications reached more than 21 GWh in 2025. This capacity could power the city of Houston from sunset to sunrise.
American facilities now possess capacity to manufacture 69.4 GWh of battery energy storage systems and some EV battery manufacturers shifted production focus towards dedicated energy storage in 2025.
According to the Financial Times, cell manufacturers have cancelled capacity sufficient to produce two million EVs. Ten US facilities have been retooled for energy storage battery production.
Alongside this agreement with Rivian, Redwood Materials has established an agreement with General Motors for EV battery storage systems.
In 2025, Redwood signed a memorandum of understanding with the company to accelerate deployment of energy storage systems using new US manufactured batteries from General Motors and second-life battery packs from its vehicles.