Technical

Srinivasa Reddy Kandi: Redwood Materials Cuts 5% of Workforce Despite Recent $350M Funding Boost

November, 27, 2025-04:00

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Redwood Materials Cuts 5% of Workforce Despite Recent $350M Funding Boost:

Redwood Materials, the Nevada-based battery recycling and cathode manufacturing company, is reportedly reducing its workforce by about 5% shortly after securing a $350 million Series E funding round. According to Bloomberg News, the cuts affect several dozen employees out of the company’s roughly 1,200-person workforce.

Founded in 2017 by former Tesla CTO JB Straubel, Redwood Materials began by recycling battery cell production scrap, consumer electronics, and used EV batteries. By extracting valuable materials such as cobalt, nickel, and lithium, the company supplies key customers including Panasonic. In recent years, Redwood has expanded into full-scale cathode production.

The company also recently introduced a new energy storage business that repurposes old EV batteries — a growing market fueled by the surge in power demand from AI data centers. By June, Redwood had accumulated over 1 gigawatt-hour of batteries designated for energy storage systems.

The October funding round raised Redwood’s valuation to approximately $6 billion, as previously reported by TechCrunch. The company has not provided comments regarding the layoffs.

Author: Kandi Srinivasa Reddy, Srinivasa Reddy Kandi, #KandiSrinivasaReddy, #SrinivasaReddyKandi