Power shortages are becoming a serious obstacle for American manufacturers and data center operators. New grid connections can take years to secure, leaving businesses searching for faster ways to get electricity. Redwood Materials wants to use retired electric vehicle batteries to help close that gap.
The company is working with Rivian to install battery storage systems at its manufacturing facilities. The arrangement gives used EV batteries another purpose after they leave vehicles. It also connects battery recovery directly to the growing demand for reliable industrial power.
Giving batteries second life
EV batteries can lose the capacity needed for driving without becoming useless. Some packs retain enough energy storage potential to serve stationary applications, where weight and packaging constraints matter less.
Redwood collects used batteries from Rivian and evaluates how to handle them. Packs suitable for another application can support energy storage. Others can go through recycling to recover valuable materials.
Rivian already operates a 10-megawatt-hour second-life battery system at its factory in Normal, Illinois. Redwood identifies the installation as the first of its kind at a US automaker’s manufacturing plant.
Rivian’s service centers also offer a steady source of batteries removed during maintenance and repairs. Recovering those packs gives Redwood access to materials that might otherwise create additional handling and transportation costs.
The arrangement creates a useful link between vehicle servicing and factory power. Batteries returning from the road could eventually help supply the facilities producing new vehicles.
Making old batteries work
Integrating retired EV batteries into one dependable power system presents a significant engineering challenge. Packs vary in chemistry and age, and their performance changes with use. A storage system must account for those differences to deliver electricity reliably.
Redwood says its battery recovery work provides valuable information about how packs deteriorate over time. Engineers can use that knowledge when deciding how to incorporate different batteries into energy storage systems.
The company also develops its own DC-DC converters and control software. These components help manage electrical power across the system, allowing batteries with different characteristics to contribute to a shared installation.
Controlling more of the technology could help Redwood avoid some equipment procurement delays. It also gives the company greater flexibility when designing systems for individual customers.
Beating the power bottleneck
The opportunity extends well beyond automotive factories. Data centers supporting AI workloads need substantial amounts of electricity, and their operators cannot always wait for grid upgrades to arrive.
The challenge involves more than generating electricity. Transformers, inverters, and other electrical equipment can also face lengthy procurement delays. Battery storage offers one way to manage available power, but it cannot replace the need for adequate generation capacity.
Redwood plans to combine its battery systems with solar power and other energy sources. The company aims to develop large microgrids that can supply industrial sites and data centers.
Such systems could help businesses bring facilities online without relying entirely on new grid connections. Their effectiveness will depend on local power demand, available generation, and the cost of installation.
The broader strategy connects battery recovery with a pressing infrastructure problem. Retired EV packs could become part of the equipment helping American industry secure electricity as demand continues to rise.