Redwood Materials, a battery recycling firm, is reducing its workforce by approximately 5% despite a recent $350 million funding round aimed at supporting its growth.
Redwood Materials, a prominent player in battery recycling and cathode manufacturing, is reportedly scaling back its operations with a workforce reduction of about 5%. This decision comes on the heels of a significant $350 million funding boost, as reported by Bloomberg News.
Founded in 2017 by former Tesla Chief Technology Officer JB Straubel, Redwood Materials has been on an aggressive expansion path to support the clean energy transition. The recent job cuts are surprising given the company’s rapid growth trajectory.
With approximately 1,200 employees at its Nevada facilities, Redwood is expected to let go of only a small fraction of its workforce, affecting a few dozen positions. This move appears to be a targeted restructuring rather than a broad downsizing, as the company continues to scale its operations.
Initially focusing on recycling waste from battery manufacturing, consumer electronics, and end-of-life electric vehicle batteries, Redwood Materials has made significant strides in recovering valuable metals such as lithium, nickel, and cobalt. These materials are then supplied back to clients, including Panasonic.
Over time, Redwood has expanded its capabilities beyond recycling, venturing into cathode material production to bolster the domestic battery supply chain. More recently, the company has begun repurposing retired electric vehicle batteries for energy storage systems, a market that is experiencing rapid growth due to increasing demand from AI-driven data centers.
By June, Redwood had accumulated over 1 gigawatt-hour of used batteries designated for its expanding energy storage venture, positioning itself as a key player in the circular battery economy.
The company’s recent $350 million Series E funding round, announced in October, reportedly elevated its valuation to approximately $6 billion, according to TechCrunch. While this funding reflects strong investor confidence in Redwood’s growth strategy, the company has not publicly commented on the recent workforce reduction. A spokesperson declined to provide details regarding the layoffs.
The shifting market conditions are impacting the broader battery and electric vehicle materials sector. General Motors has confirmed plans to eliminate roughly 1,700 positions related to its electric vehicle and battery operations in Detroit and Ohio, as part of a broader effort to recalibrate production targets. Additionally, Cellforce, a battery unit backed by Porsche, is preparing to cut a significant portion of its workforce after scaling back plans for high-performance cell manufacturing.
On the West Coast, Washington-based Group14 Technologies has also reduced staff and postponed its facility launch, citing changing demand patterns and uncertainty in global supply chains.
As Redwood Materials navigates these challenges, the company remains focused on its mission to support the clean energy transition while adapting to the evolving landscape of the battery industry.
Source: Original article