Rivian Inks Partnership With Former Tesla Exec’s Firm For Energy Storage At Illinois Plant Ahead Of Launching Model Y Rival

• Initially, the two companies intend to provide 10 megawatt-hours of dispatchable energy to reduce cost and grid load during peak demand periods at the factory. 
• Rivian’s attempts to advance energy storage at Normal comes as it gears to start volume production of its smaller, more affordable R2 midsize SUV at the plant. 
• Nevada-based Redwood Materials was founded in 2017 by JB Straubel, the former Chief Technology Officer and co-founder of Tesla.

EV startup Rivian Automotive (RIVN) said on Tuesday that the company has inked a partnership with Tesla co-founder and former executive JB Straubel’s Redwood Materials to deploy battery energy storage at the company’s Normal, Illinois manufacturing facility.

RIVN shares edged up nearly 0.66% at the time of writing.

New Partnership

Under the partnership, Rivian will provide Redwood with used EV battery packs, which will be integrated by the latter into its energy system to store energy for use at the carmaker’s manufacturing plant. Initially, the two companies intend to provide 10 megawatt-hours (MWh) of dispatchable energy to reduce cost and grid load during peak demand periods at the factory.

The system is rapidly scalable and offers significant cost benefits by using proven EV batteries and enables faster, more flexible deployment of energy capacity, the two companies said.

“As energy needs grow, our grid needs to be flexible, secure, and affordable. Our partnership with Redwood enables us to utilize our vehicle’s batteries beyond the life of a vehicle and contribute to grid health and American competitiveness," Rivian CEO RJ Scaringe said.

Upcoming R2 Launch

Rivian’s attempts to advance energy storage at Normal comes as it gears up to start volume production of its smaller, more affordable R2 midsize SUV at the plant. The R2, whose entry level variant is expected to start at around $45,000, is expected to compete against Tesla’s best-selling Model Y SUV in the mass market EV segment. Deliveries of the first R2 vehicles are expected to start around June 2026.  

While the midsize SUV will initially be manufactured at Normal, Rivian expects its upcoming Georgia facility to provide additional capacity in time

About Redwood

Nevada-based Redwood Materials was founded in 2017 by JB Straubel, the former Chief Technology Officer (CTO) and co-founder of Tesla. Straubel established the company to focus on lithium-ion battery recycling, materials supply, and creating a circular supply chain for electric vehicles and clean energy products. Straubel left Tesla in 2019 to build Redwood full-time.

Straubel is currently on Tesla's board of directors after being officially elected at the company’s 2023 annual shareholder meeting.  

How Did Retail Traders React?

On Stocktwits, retail sentiment around RIVN stock stayed within the ‘bearish’ territory over the past 24 hours, while message volume remained at ‘low’ levels.

RIVN stock has gained 33% over the past 12 months.  

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