Redwood Materials reportedly cuts 5% of staff after $350M raise

Redwood Materials, a prominent player in battery recycling and cathode production, has reportedly decided to reduce its workforce by approximately 5% following a substantial $350 million funding round. This adjustment, affecting a few dozen of its 1,200 employees based in Nevada, comes as the company continues to evolve in a competitive industry. Founded in 2017 by former Tesla CTO JB Straubel, Redwood initially concentrated on recycling scrap materials from battery cell production, consumer electronics, and used electric vehicle batteries. The company has developed a process to extract valuable materials such as cobalt, nickel, and lithium from these discarded items, which are then sold back to major clients, including Panasonic. In addition to its recycling efforts, Redwood has expanded its operations to include cathode production and launched a new venture utilizing old EV batteries for energy storage solutions. This initiative has gained traction, particularly with the rising demand from AI data centers. By June, Redwood had accumulated over 1 gigawatt-hour of batteries designated for this innovative application. The recent Series E funding round, announced in October, has significantly elevated the company's valuation to approximately $6 billion. However, despite the financial success, a spokesperson for Redwood Materials declined to provide further details regarding the workforce reduction.