Redwood Materials, the battery recycling and cathode production company founded by former Tesla CTO JB Straubel, has reportedly cut approximately 5% of its workforce, impacting dozens of employees. This significant move comes shortly after the Nevada-based startup secured a substantial $350 million Series E funding round, which propelled its valuation to an estimated $6 billion, as TechCrunch previously reported.
According to Bloomberg News, the layoffs affect a few dozen workers out of Redwood Materials' approximately 1,200 employees. A spokesperson for the company declined to comment on the job cuts.
Established in 2017, Redwood Materials initially focused on recycling scrap from battery cell production, consumer electronics, and used electric vehicle (EV) batteries. The company specializes in extracting valuable materials such as cobalt, nickel, and lithium from discarded goods, which are then sold back to customers, including major players like Panasonic. Redwood has since expanded its operations to include cathode production.
More recently, Redwood Materials launched a new business segment dedicated to repurposing old EV batteries into energy storage products. This strategic pivot aligns with the surging demand from power-hungry AI data centers, a sector experiencing rapid growth. As of June, the company had already stockpiled over 1 gigawatt-hour's worth of batteries specifically for these energy storage solutions.
