Redwood Materials, a leading battery recycling and cathode production firm, has reduced its staff by approximately 5% despite recently securing $350 million in new funding. The cuts affect roughly 60 employees at the Nevada-based company, which currently employs around 1,200 workers.
Shift in Strategy Amid Growth
Founded in 2017 by former Tesla CTO JB Straubel, Redwood Materials initially focused on extracting valuable materials like cobalt, nickel, and lithium from discarded batteries—from electric vehicles, consumer electronics, and manufacturing scrap. The firm then sells these recovered materials back to battery manufacturers such as Panasonic.
The company has since expanded into cathode production and energy storage solutions, tapping into the burgeoning demand from data centers and other high-power sectors. As of June, Redwood had amassed over 1 gigawatt-hour of batteries for use in these applications.
Why This Matters
The layoffs, coming shortly after a major funding round, suggest a strategic recalibration at Redwood. While the company is growing rapidly into new business areas, it appears to be streamlining operations and focusing resources on high-priority areas like cathode production and energy storage.
This move reflects a broader trend in the EV battery supply chain, where companies are under pressure to scale efficiently and capitalize on opportunities in recycling, material extraction, and energy storage. The efficiency is critical given the high capital expenditure in this space.
Ultimately, Redwood’s restructuring underscores the competitive dynamics of the evolving battery industry—even well-funded companies must adapt to changing market conditions.
