Manufacturing NewsTEG Daily

April 16, 2026 · National

Second-Life Battery Storage and Biocarbon Fuel: Two Industrial Moves Indiana Manufacturers Need to Evaluate

Rivian's 10 MWh second-life storage build and Steel Dynamics' $300M biocarbon facility signal where Indiana manufacturers' energy and fuel costs are heading.

Two large industrial operations just changed part of the electricity cost and fuel picture for Indiana manufacturers: one by deploying 10 megawatt hours of second-life battery storage at a manufacturing plant in Illinois, the other by opening a $300 million facility in Mississippi that will replace coal and coke at a steel mill in Butler, Indiana. Neither development requires you to copy it. Both of them tell you where large industrial players are putting their money, and why.

01National

Rivian and Redwood Deploy 10 MWh of Second-Life Battery Storage in Normal, IL

Rivian and Redwood Materials have announced a partnership to install an on-site energy storage system at Rivian's manufacturing plant in Normal, Illinois. Redwood will take more than 100 second-life Rivian battery packs and integrate them into a system managed by their Pack Manager Technology, delivering approximately 10 megawatt hours of dispatchable on-site storage.

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02National

Steel Dynamics Opens $300M Biocarbon Facility, Fuel Ships to Butler, Indiana Mill

Steel Dynamics has opened a $300 million biocarbon facility in Lowndes County, Mississippi, as a joint venture with Michigan-based Aymium. The 90-acre site chemically converts organic waste, sawdust and forest thinnings, into approximately 200,000 tons of biocarbon annually.

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Questions for Your Morning Huddle

Q: Should Indiana manufacturers evaluate second-life battery storage to reduce peak demand charges? A: If your facility carries high demand charges or runs against feeder capacity limits, second-life storage is worth a formal internal evaluation, not a vendor sales call, but an analysis of your actual load profile and which 15-minute intervals are driving your monthly demand charge. The technology works at industrial scale; the question is whether the economics hold at your specific load and under your current tariff.

Q: How does Steel Dynamics' biocarbon facility affect the Butler, Indiana steel supply chain? A: SDI is diversifying the furnace fuel at their Butler mill away from coal and coke. For Indiana manufacturers who purchase from that mill, this can improve long-term supply stability if fossil carbon supply chains tighten or face more regulatory pressure. It also positions SDI to respond to customers asking about embedded emissions in purchased steel, which may become a factor in competitive bids.

Q: Where should Indiana manufacturers look for alternative fuel or feedstock options in their own operations? A: Start with your three most energy-intensive production steps and map the single-source inputs each one depends on. SDI's biocarbon move and Rivian's storage build follow the same logic: identify a fragile input, find a credible alternative, and build a supply chain around it before conditions force the decision. Operators who do this proactively hold more control over their cost structure than those who wait on utilities or regulators to solve it.

For a deeper look at how demand charges are calculated and when storage actually moves the number, read [how demand charges work for Indiana C&I operators] on TEG.

Watch this TEG Daily on YouTube: Watch this TEG Daily, Second-Life Storage and Steel Dynamics Biocarbon, on YouTube

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