The U.S. battery recycler Redwood Materials has cut approximately 135 jobs, amounting to about 10 percent of its workforce. According to the company, these cuts are part of a strategic realignment toward its growing energy storage business. Five months ago, Redwood Materials had already cut five percent of its workforce shortly after a $425 million funding round.
This decision comes during a tense period for the industry. Recently, the recycler Ascend Elements filed for bankruptcy protection. Several battery manufacturers have also restructured or exited the market. Companies cite the slowdown in electric mobility development in the U.S. as the reason.
However, CEO JB Straubel describes the situation as stable internally. According to the company, the materials business is approaching profitability. Management justifies the cuts by stating that parts of the organization grew faster than necessary. Several departments are affected, including engineering and operations. The goal is to implement future projects with smaller, more focused teams.
New Partnerships in the Energy Sector
Redwood Materials is focusing more and more on collaborations in the energy sector. The company has announced agreements with Crusoe AI and EV manufacturer Rivian. These agreements involve providing recycled batteries to power facilities.
Redwood Materials emphasizes its continued leading role in the U.S. battery recycling market. Meanwhile, Redwood Materials is striving to expand its integrated business model, which combines material processing and energy storage.
