Battery Recycler Redwood Materials Cuts Workforce After $350 Million Raise
Following a recent $350 million funding round, Redwood Materials, a battery recycler and cathode-maker, is reported to be reducing its workforce by approximately 5%, according to a report by Bloomberg News.
With a workforce of around 1,200 employees in Nevada, the cuts will impact a few dozen workers at the company.
Founded in 2017 by former Tesla CTO JB Straubel, Redwood Materials initially focused on recycling scrap from battery cell production, consumer electronics, and used EV batteries. The company specializes in extracting materials such as cobalt, nickel, and lithium from these discarded items, which are then sold back to customers, including Panasonic. In addition to recycling, Redwood has expanded its operations to include cathode production.
Recently, the company ventured into a new business segment that utilizes old EV batteries in energy storage products, catering to the growing demand from power-hungry AI data centers. By June, Redwood had accumulated over 1 gigawatt-hour of batteries for this specific purpose.
The successful $350 million Series E funding round, announced in October, propelled Redwood Materials’ valuation to approximately $6 billion. While the company spokesperson declined to comment on the reported layoffs, the development comes amidst the company’s continued growth and diversification in the sustainable energy sector.
