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

Redwood Materials, a Nevada-based battery recycler and cathode producer founded in 2017 by former Tesla CTO JB Straubel, has reportedly cut about 5% of its workforce—roughly a few dozen employees out of 1,200—shortly after raising $350 million in a Series E funding round. The company specializes in recycling materials such as cobalt, nickel, and lithium from battery scrap and used EV batteries, which it then sells back to customers including Panasonic. Redwood has also expanded into cathode production and recently launched a business repurposing old EV batteries for energy storage, a sector benefiting from the rise of AI data centers. The October funding round increased Redwood’s valuation to approximately $6 billion. Despite the recent capital infusion, the company opted for workforce reductions, though a spokesperson declined to comment on the layoffs. As of June, Redwood had accumulated over 1 gigawatt-hour of batteries for its energy storage initiatives, signaling ongoing investment in this growing market segment.