**Redwood Materials Cuts Around 5% of Staff Following $350M Funding Round**
Battery recycling pioneer Redwood Materials has announced a...
Battery recycling pioneer Redwood Materials has announced a workforce reduction of approximately 5% to 6%, affecting dozens of employees across the company. The move comes just weeks after the firm closed a $350 million Series E funding round, bringing its total valuation to $6 billion and marking one of the largest investments in the battery recycling sector this year.
The layoffs, which spanned several departments including cat...
The layoffs, which spanned several departments including cathode material engineering, signal a strategic pivot for the company as it shifts focus from electric vehicle (EV) battery recycling to grid-scale energy storage solutions. Redwood, co-founded by Tesla’s former CTO JB Straubel, is adapting to a rapidly changing market landscape marked by slowing EV sales, evolving regulatory policies, and intensifying global competition.
### Strategic Pivot Amid Market Shifts
Redwood’s decision to refocus its operations reflects broade...
Redwood’s decision to refocus its operations reflects broader challenges facing the battery recycling industry. With EV adoption rates plateauing in some markets and automakers increasingly turning to lower-cost lithium iron phosphate (LFP) batteries—which are less lucrative to recycle—companies like Redwood are finding it harder to sustain growth in their original business lines.
The company is now prioritizing the development of grid-scal...
The company is now prioritizing the development of grid-scale battery recycling and critical mineral extraction, areas that are seeing growing demand as utilities and governments invest in large-scale energy storage to support renewable energy integration. Redwood’s vertically integrated model—recycling battery materials and manufacturing refined components—positions it to capture value across the supply chain, but the transition requires a realignment of resources and talent.
### Funding and Operational Challenges
Despite the recent $350 million infusion, led by Eclipse and...
Despite the recent $350 million infusion, led by Eclipse and including participation from NVentures (NVIDIA), Redwood has faced operational hurdles. Delays in completing its cathode production facility and ongoing shortages of recyclable battery feedstock have hampered its ability to scale up as quickly as planned. The company’s ambitious goal of reaching 500 GWh in annual production capacity by 2030—enough to supply materials for 5 million EVs—remains intact, but the path to getting there is proving more complex than anticipated.
Redwood’s business model relies heavily on securing reliable...
Redwood’s business model relies heavily on securing reliable streams of battery waste and scrap from manufacturers and consumers. Any slowdown in EV production or battery turnover could leave its expensive processing facilities underutilized, a risk that has become more acute as the market evolves.
### Industry and Policy Headwinds
The company’s struggles are not unique. Battery recyclers ac...
The company’s struggles are not unique. Battery recyclers across the U.S. are grappling with limited feedstock availability, rising costs, and increased competition from China, which currently dominates global lithium and cobalt processing. Chinese firms have significant cost advantages and could expand internationally, potentially undercutting U.S. companies on price.
Domestic policy changes have also played a role. The rollbac...
Domestic policy changes have also played a role. The rollback of EV incentives under the Trump administration and ongoing regulatory uncertainty have made it harder for companies like Redwood to plan for long-term growth. Meanwhile, the Inflation Reduction Act’s push for domestic supply chains has created both opportunities and challenges, as automakers seek U.S.-sourced materials but face their own economic pressures.
### What’s Next for Redwood and the Industry?
Redwood’s strategic shift raises questions about the long-te...
Redwood’s strategic shift raises questions about the long-term viability of battery recycling startups in a volatile market. While the company has secured substantial funding and maintains strong partnerships with major automotive and electronics manufacturers, its ability to capture a significant share of the grid-scale battery market will depend on its execution and the broader economic environment.
The layoffs are a stark reminder that even well-funded, high...
The layoffs are a stark reminder that even well-funded, high-profile startups must adapt to changing market conditions. As Redwood continues to build out its domestic supply chain and expand its recycling and manufacturing capabilities, the industry will be watching closely to see how it navigates the challenges ahead.
For now, Redwood remains committed to its mission of creatin...
For now, Redwood remains committed to its mission of creating a closed-loop battery materials supply chain, but the road to sustainability is proving to be anything but smooth.
🔄 Updated: 11/26/2025, 8:30:44 PM
Redwood Materials, fresh off a $350 million funding round led by Eclipse Ventures and including Nvidia’s NVentures, has cut around 5% of its approximately 1,200 employees as it pivots from electric vehicle battery recycling toward grid-scale energy storage solutions powering AI data centers and industrial sites[2][3][5]. Industry experts see this move as a strategic adaptation amid slower EV sales, feedstock shortages, and regulatory challenges, with layoffs focused in cathode material engineering roles reflecting a shift to prioritize critical minerals and large-scale energy storage over earlier ambitions[5][7]. Analysts note that despite the $6 billion valuation boost, Redwood’s restructuring highlights broader sector-wide adjustments as U.S. battery recyclers struggle with supply chai
🔄 Updated: 11/26/2025, 8:40:45 PM
**Redwood Materials Cuts Around 5% of Staff Following $350M Funding Round**
Tesla co-founder JB Straubel's battery recycling firm Redwood Materials has cut approximately 5-6% of its workforce this month despite closing a $350 million Series E funding round led by Eclipse Ventures and backed by Nvidia's investment arm, signaling a strategic pivot toward grid-scale energy storage over EV battery recycling as the company faces headwinds from Trump-era policy rollbacks and Chinese supply chain dominance.[1][2] The layoffs, which affected employees across cathode material engineering and other divisions, come as Redwood repositions to capitalize on grid storage deman
🔄 Updated: 11/26/2025, 8:50:52 PM
**Redwood Materials Cuts 5% of Workforce Following $350M Series E Funding**
Tesla co-founder JB Straubel's battery recycling firm Redwood Materials has eliminated dozens of jobs—approximately 5% to 6% of its roughly 1,200-person workforce—as part of a strategic restructuring focused on grid-scale energy storage rather than EV battery recycling.[1][2] The layoffs, which occurred this month and affected employees across multiple departments including cathode material engineering, come just weeks after the company closed a $350 million Series E round led by Eclipse Ventures with backing from Nvidia's investment arm, valuing the company at roughly $6
🔄 Updated: 11/26/2025, 9:01:08 PM
Redwood Materials announced a workforce reduction of approximately 5%, cutting around 60 of its 1,200 employees shortly after securing $350 million in Series E funding that valued the company at about $6 billion[1][3][7]. The layoffs coincide with a strategic pivot from primarily EV battery recycling and cathode production toward expanding grid-scale battery recycling and critical mineral extraction, reflecting challenges including slowed EV sales, feedstock shortages, delayed cathode plant completion, and changing federal incentives under the 2025 energy policy landscape[1][3][5]. This shift aims to capitalize on growing demand for energy storage in AI data centers, while adapting to industry headwinds such as supply chain pressures and reduced federal support, highlighting operational recalibration despit
🔄 Updated: 11/26/2025, 9:11:16 PM
Following its $350 million funding round led by Eclipse Ventures with participation from Nvidia’s NVentures, Redwood Materials cut approximately 5% of its 1,200-employee workforce, impacting several dozen jobs amid a strategic pivot toward grid-scale energy storage[1][2]. The company frames this move within a global context of constrained international supplies of critical battery minerals like lithium and cobalt, emphasizing the U.S. need to expand domestic capacity to meet soaring demand for energy storage products powering AI data centers and industrial sites[2][6]. Internationally, Redwood’s operations extending into Europe underscore the broader industry challenge of supply chain resilience amid geopolitical shifts, as the company reallocates resources to critical mineral recovery and energy storage solutions essential for the globa
🔄 Updated: 11/26/2025, 9:30:57 PM
Redwood Materials cut approximately 5-6% of its workforce following a $350 million funding round led by Eclipse Ventures and Nvidia’s investment arm, NVentures, as it shifts focus from EV battery recycling to grid-scale energy storage amid global supply chain challenges[1][2][6]. This strategic pivot addresses international supply constraints and volatile regulatory environments, with the company highlighting that "curtailment in international supplies overlaps with intense domestic demand growth," underscoring a broader global impact on critical mineral supply chains[2]. While Redwood navigates US operational hurdles, including delayed cathode plant completion, its international presence in North America and Europe and recognition of markets like India’s $1.3 billion battery recycling potential reflect a varied global response t
🔄 Updated: 11/26/2025, 9:40:58 PM
Redwood Materials, led by Tesla co-founder JB Straubel, cut approximately 5-6% of its workforce as part of a strategic pivot towards grid-scale battery recycling and critical mineral extraction amid challenges in the EV battery recycling market. This reduction followed the company’s recent $350 million Series E funding round, led by Eclipse Ventures and including Nvidia’s investment arm, aimed at expanding sustainable energy storage solutions using repurposed EV batteries for AI data centers and industrial sites. Despite the funding boost, operational hurdles such as delayed cathode plant completion and feedstock shortages have pressured the company to reallocate resources and scale back some original ambitions[1][2][3][7].
🔄 Updated: 11/26/2025, 9:50:53 PM
Redwood Materials has cut approximately 5% of its workforce—dozens of employees—just weeks after closing a $350 million funding round led by Eclipse Ventures and Nvidia’s NVentures, signaling a strategic pivot amid intensifying competition and shifting market dynamics. The move reflects broader industry pressures, including feedstock shortages, rising costs, and policy rollbacks, as rivals like Li-Cycle have also downsized or filed for bankruptcy amid similar headwinds. “This is a pivotal time for both Redwood and the United States,” the company stated, as it shifts focus from EV battery recycling to grid-scale energy storage to capture new opportunities in a tightening sector.
🔄 Updated: 11/26/2025, 10:00:59 PM
Redwood Materials, led by Tesla co-founder JB Straubel, cut approximately 5-6% of its workforce following a $350 million Series E funding round closed in October 2025, which valued the company at about $6 billion. The layoffs coincide with a strategic pivot from EV battery recycling to grid-scale battery storage and critical mineral extraction, driven by challenges such as feedstock shortages, delays in cathode plant completion, and a tough regulatory environment affecting the US battery supply chain. Despite the capital influx from investors including Eclipse Ventures and Nvidia’s NVentures, Redwood is scaling back some ambitious projects to focus on expanding sustainable energy storage for AI data centers and industrial grids[1][2][8].
🔄 Updated: 11/26/2025, 10:10:53 PM
**Redwood Materials Workforce Reduction Signals Strategic Pivot Amid Market Headwinds**
Tesla co-founder JB Straubel's battery recycling firm Redwood Materials has cut approximately 5-6% of its workforce this month, with layoffs affecting employees across cathode material engineering and other divisions, even as the company secured $350 million in Series E funding led by Eclipse Ventures with participation from Nvidia's investment arm.[1][3] The restructuring reflects a strategic pivot away from EV battery recycling toward grid-scale energy storage and critical mineral extraction, as the company confronts Trump-era policy rollbacks on EV incentives, Chinese supply chain dominance, an
🔄 Updated: 11/26/2025, 10:20:59 PM
Redwood Materials, fresh off a $350 million funding round that raised its valuation to around $6 billion, has cut approximately 5% of its workforce—roughly 60 employees out of 1,200—as it shifts focus from EV battery recycling toward grid-scale energy storage amid increasing competition and supply chain challenges in the battery materials sector[1][3]. This strategic pivot reflects pressures from reduced federal incentives, dominant Chinese supply chains, and evolving battery technologies, prompting Redwood to reallocate resources to critical mineral extraction and storage solutions, areas viewed as more promising in the current competitive landscape[3][6]. Despite the layoffs, Redwood aims to strengthen its position with new investments from Eclipse Ventures and Nvidia’s NVentures, leveraging its stoc
🔄 Updated: 11/26/2025, 10:30:59 PM
Redwood Materials has cut approximately 5% of its workforce—around 60 employees—shortly after securing a $350 million Series E funding round in October 2025, according to Bloomberg and TechCrunch. The company, which has received over $2 billion in equity and a $2 billion loan commitment from the Department of Energy, has not received direct public comment from federal regulators on the layoffs, but the restructuring comes amid broader uncertainty over federal support for battery recycling, as the recently passed “One Big Beautiful Bill” accelerates the phase-out of key tax credits and imposes stricter construction deadlines, potentially dampening the economics of such ventures.
🔄 Updated: 11/26/2025, 10:40:56 PM
Redwood Materials cut about 5% of its workforce, roughly 60 out of 1,200 employees, shortly after closing a $350 million Series E funding round that valued the company at $6 billion[1][3]. This layoff reflects a strategic pivot from primarily EV battery recycling and cathode production toward grid-scale battery storage, driven by operational challenges such as feedstock shortages, delayed cathode plant completion, and a tougher regulatory environment that has dampened recycling economics[3]. The shift aims to capitalize on growing demand in energy storage for AI data centers and critical mineral extraction, though it raises questions about Redwood’s scale-up execution amid market and policy headwinds[1][3].
🔄 Updated: 11/26/2025, 10:50:53 PM
Following Redwood Materials’ $350 million funding round that valued the company at around $6 billion, the announcement of a 5% workforce reduction led to mixed market reactions. Despite the fresh capital injection, Redwood’s stock showed modest downward pressure as investors digested the layoffs amid the company's strategic pivot toward grid-scale battery storage and challenges in EV battery recycling[1][3]. Market commentary highlights concern over operational hurdles and delayed projects, which tempered enthusiasm even after the successful Series E funding led by Eclipse Ventures and NVIDIA’s NVentures[2][3].
🔄 Updated: 11/26/2025, 11:01:02 PM
Redwood Materials, led by Tesla co-founder JB Straubel, cut about 5% to 6% of its workforce this month, laying off dozens of employees including those in cathode material engineering, despite raising $350 million in a Series E funding round in October 2025[1][3][5][7]. The strategic layoffs accompany a pivot from EV battery recycling toward grid-scale battery storage and critical mineral extraction, driven by challenges such as supply chain issues, policy rollbacks, and feedstock shortages delaying their cathode plant completion[1][3]. The $350 million funding, led by Eclipse Ventures with participation from Nvidia’s NVentures, aims to boost Redwood’s expansion into sustainable energy storage for AI data centers an