Rivian Plants Second-Life Batteries at Illinois Factory

Electric vehicle battery packs are often removed from cars when their performance drops below driver expectations, such as reduced range or slower charging speeds. However, the cells inside still retain significant energy capacity, typically between 70 and 80 percent of their original strength. This residual power makes them viable for stationary applications, even if they no longer meet the demanding requirements of automotive propulsion.

In April 2026, Rivian and Redwood Materials announced a plan to deploy more than 100 of these second-life battery packs at Rivian’s manufacturing plant in Normal, Illinois. The system is designed to handle 10 megawatt-hours of energy, serving to smooth out peak electricity demand. By drawing on stored energy during high-load periods, such as heat waves, the facility can reduce its immediate draw from the grid, providing a practical application for batteries that have retired from vehicle service.

Managing peak demand at the factory

The primary function of this installation is known as peak shaving. During times of high electricity usage, the plant can utilize the stored energy from the battery bank to offset grid demand. This flexibility is particularly useful during extreme weather events that drive up industrial energy consumption. According to EV Infrastructure News, Redwood’s management software integrates these diverse battery units, allowing them to communicate with onboard systems and operate as a cohesive storage solution despite variations in chemistry and capacity.

Rivian CEO RJ Scaringe has described electric vehicles as a distributed energy resource. This partnership aims to operationalize that concept within a single manufacturing site. However, the economic success of this model depends on several factors, including installation costs, operational reliability, and the price of alternative energy sources. It is not automatically the most efficient route for every battery, as the value of immediate material recovery must be weighed against the benefits of extended use.

Choosing between reuse and recycling

Research indicates that the best end-of-life path varies by battery chemistry. A study involving Carnegie Mellon University and the National Laboratory of the Rockies found that lithium iron phosphate, or LFP, batteries often have a stronger economic case for reuse. Their durability supports further service, while their materials offer comparatively lower recycling returns. In contrast, nickel cobalt aluminium, or NCA, batteries were generally found to be more economical to recycle immediately due to their higher material value and degradation rates.

Nickel manganese cobalt, or NMC, batteries fall into a middle category where the preferred route depends on specific usage history and application demands. A separate 2024 working paper from Stanford and Mannheim universities supported these findings, projecting that used LFP packs retain significant market value, while repurposing nickel-cobalt-based batteries in the US offers only marginal economic benefits. These models suggest that sorting and assessing batteries individually is crucial, rather than applying a one-size-fits-all approach to all retired packs.

Barriers to scaling the model

The collaboration in Normal connects an automaker with a company capable of assessing and integrating these units. While this reduces transport needs, it does not guarantee that the process is straightforward or profitable. As noted by GN auto tech/ev, the scalability of such projects relies on accurate assessment of remaining life and the costs associated with integration. The arrangement is useful but does not establish that all retired packs are suitable for immediate reuse. The economic viability remains a complex calculation involving degradation, material value, and infrastructure costs.