Electric vehicle maker Rivian struck a deal with battery recycling firm Redwood Materials to power its Normal, Illinois, manufacturing plant using repurposed EV batteries. This arrangement creates what executives claim is the largest repurposed-battery energy storage system for an automotive manufacturer in the United States, signaling a new approach to operational sustainability.

Redwood Materials, founded by Tesla co-founder JB Straubel, will facilitate the integration of over 100 used Rivian EV batteries into the system, fitting within a space comparable to a small parking lot. The move directly addresses utility costs and grid strain, allowing Rivian to draw power from its own stored energy during periods of high demand.

This initiative offers a concrete solution for managing end-of-life battery components while simultaneously cutting manufacturing overheads for the EV startup. Reducing reliance on the external power grid during peak hours provides both immediate cost savings and a demonstration of closed-loop sustainability within automotive production.

By treating retired vehicle packs as on-site energy assets, Rivian transforms potential waste into operational capacity. The project’s completion later this year provides a tangible benchmark for how automakers can manage future battery streams internally.