Rivian Automotive (NASDAQ:RIVN) and Redwood Materials have announced a partnership to establish a state-of-the-art battery energy storage system at Rivian’s manufacturing facility in Normal, Illinois.
The system, built using more than 100 repurposed Rivian battery packs, will initially deliver 10 megawatt-hours (MWh) of dispatchable energy. It is expected to lower costs and ease pressure on the grid during peak demand, improving overall grid stability and reliability.
Rivian would supply used EV battery packs to Redwood, which will incorporate them into a Redwood Energy storage system. Powered by Redwood's Pack Manager technology, the setup will enable on-site use of stored energy at Rivian's Illinois facility.
Designed to scale, the system aims to deliver meaningful cost savings by repurposing reliable EV batteries, allowing fast and flexible deployment of energy capacity in high-demand settings such as manufacturing plants.
RJ Scaringe, founder and CEO of Rivian, and JB Straubel, founder and CEO of Redwood Materials and former CTO and co-founder of Tesla Inc. (NASDAQ:TESLA), said the partnership will repurpose used EV batteries into energy storage systems, supporting manufacturing, strengthening grid stability, and enhancing U.S. competitiveness.
Rivian R2 Ramp Drives Energy Demand
Rivian's plant in Normal, Illinois, is scaling up production with the addition of the R2, increasing its energy demand. Installing a battery buffer would help it cut peak electricity costs and ensure stable operations during grid stress without drawing extra power at critical times.
Earlier this month, an EPA certification filing for Rivian's R2 SUV suggested that the vehicle could deliver up to 335 miles of range, slightly above the company's earlier 330-mile estimate. The filing also indicates an improved heat pump for better battery efficiency.
Priced at $57,990, the R2 Performance targets the Tesla (NASDAQ:TSLA) Model Y and could offer about a 30-mile range advantage, boosting its competitiveness in the performance electric SUV segment.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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