Rivian Automotive (RIVN) shares fell 3.14% to $12.95 on Wednesday as the electric vehicle maker expanded its battery recycling partnership with Redwood Materials. The agreement adds battery scrap recycling and broader energy storage services to the companies' existing collaboration, and the expansion strengthens Rivian's battery management operations even as its shares the session lower.

Expanded Agreement Covers Battery Recycling and Storage

Rivian and Redwood Materials announced an expanded agreement covering electric vehicle battery recycling and stationary energy storage. The partnership now includes additional services that support battery collection, reuse, and material recovery. Both companies aim to improve battery resource management across Rivian's manufacturing and service operations.

The expanded partnership covers battery waste from manufacturing operations alongside batteries from retired electric vehicles. This arrangement creates additional opportunities to reuse batteries before their remaining materials are recycled, and it gives Redwood a broader role in managing batteries throughout their useful lives. For the wider electric vehicle sector, the deal reflects how end-of-life battery handling is becoming an operational consideration that grows in importance as more electric vehicles move beyond their initial years of road use.

Under the agreement, Redwood will collect used battery packs through Rivian's nationwide service center network. Each pack will be assessed to determine whether it can support another energy storage application, while batteries that no longer meet operational requirements will be recycled.

Recycling Services Layered Onto Existing Storage Project

The latest agreement builds on an energy storage partnership the two companies announced in April 2026. That project involves deploying 10 megawatt-hours of repurposed battery storage at Rivian's Normal, Illinois, factory, and the expanded arrangement adds recycling services to the existing effort.

Redwood will also process battery scrap from Rivian's vehicle manufacturing activities. The company says its recycling technology can recover more than 95% of critical materials, including lithium, nickel, cobalt, and copper. These recovered materials can support domestic battery production and reduce reliance on newly mined resources, a point of relevance for automakers that depend on steady supplies of battery raw materials.

The companies also plan to extend battery use beyond electric vehicle applications. Batteries that lose sufficient capacity for driving can still provide electricity storage for factories and other facilities. This approach, often referred to as second-life battery use, allows Rivian to extract additional value from its batteries before their remaining materials are recycled.

Stationary Storage at the Illinois Factory

Rivian's Illinois manufacturing facility will serve as an initial location for the companies' stationary battery storage systems. These systems can store electricity during periods of lower demand or cheaper power supply, and facilities can then draw on the stored energy during periods of higher electricity demand.

Redwood's energy management technology will coordinate battery storage operations according to facility requirements. The system can help manufacturers manage power consumption and reduce exposure to peak electricity costs, while providing additional energy capacity without relying entirely on conventional grid infrastructure.

One Arrangement for the Full Battery Lifecycle

The partnership combines battery collection, reuse, energy storage, and mineral recovery under a single operating arrangement. For Rivian, the expanded services support battery lifecycle management alongside its electric vehicle manufacturing activities. For Redwood, the agreement deepens its role in supporting domestic battery recycling and industrial energy storage.

As the arrangement takes shape, the deployment of the 10 megawatt-hours of repurposed storage at the Normal factory and the flow of packs moving through Rivian's service centers will provide concrete indicators of how the combined recycling-and-storage model functions in practice.

This article was originally published on Blockonomi: Rivian Automotive (RIVN) Stock: Declines as Rivian and Redwood Expand Battery Recycling Alliance.