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Redwood Materials lays off 10% in restructuring to chase energy storage business. 6 2 minutes read Redwood Materials has laid off around 135 employees, or roughly 10% of its workforce, as it restructures to better accommodate its growing energy storage business, TechCrunch has learned. The cuts come just five months after Redwood cut 5% of its workforce, and three months after it closed a $425 million funding round that boosted the battery recycling company's valuation to north of $6 billion, as TechCrunch previously reported. It's been a difficult time in the battery industry lately. Earlier this month, battery recycler Ascend Elements filed for Chapter 11 bankruptcy protection, citing "insurmountable" financial challenges. Some battery-makers have also restructured or gone out of business as the automotive industry in the U.S. has backed away from its most optimistic and ambitious plans to transition to electric vehicles. But Redwood Materials founder and CEO JB Straubel told employees that this new round of cuts is not a sign that the company is heading down the same path. "Redwood today is the strongest it's ever been," Straubel wrote in an email to the workers who weren't laid off, according to a copy viewed by TechCrunch. "The materials business is well on its way to profitability and has an exciting roadmap ahead." Straubel noted that Redwood "continue[s] to dominate the US battery recycling market" but also touted the company's "great momentum" in its new energy storage business. Redwood has recently announced deals with Crusoe AI and, most recently, electric automaker Rivian to provide recycled batteries that can be used to power those companies' facilities. The company declined to comment beyond the contents of Straubel's email. In his message, Straubel wrote that "parts of the company have expanded faster than needed to support the direction" of Redwood. As a result, he said Redwood is making cuts across multiple divisions, including the engineering and operations organizations, according to an employee who was granted anonymity to discuss the layoffs. Techcrunch event San Francisco, CA | October 13-15, 2026 "We are confident that we can deliver on our critical projects with a smaller team that is more focused," he wrote. "We have successfully adapted to changes in the market that have bankrupted many of our competitors." Straubel went on to write that he is "more excited than ever with our path ahead as we build the most integrated and cost-effective critical materials and energy storage business in the world." "This is a self-sustaining business and will continue to make this company more valuable over time. We have the team and the technology to do what no other company can," he wrote. Workers who were laid off were told by Redwood's chief HR officer that the layoffs were made "to sharpen our focus, our work and the size of our teams to support the direction Redwood is going in the future," according to a copy of her email, which was viewed by TechCrunch. Employees who were laid off are receiving severance and paid health benefits, according to Straubel's email, as well as "career transition assistance." "I am grateful to the approximately 135 employees who we say goodbye to today - they've all contributed to building Redwood," he wrote. When you purchase through links in its articles, DelawareDigitalNews.c may earn a small commission. This doesn't affect its editorial independence.

Rivian and Redwood Materials have partnered to deploy battery energy storage at Rivian's Normal, Illinois manufacturing facility. The system will use over 100 second-life Rivian battery packs to provide 10 megawatt-hours of dispatchable energy, reducing costs and grid load during peak demand periods. Rivian will supply EV battery packs to Redwood, which will integrate them into a Redwood Energy system using the company's Pack Manager technology. The stored energy will be used on-site at Rivian's plant, offering significant cost benefits and faster deployment than traditional infrastructure. The partnership addresses growing US energy storage needs, with estimates suggesting over 600GWh of storage capacity required by 2030. By repurposing EV batteries before recycling, the companies aim to extend battery life, decrease reliance on imported energy storage and defer costly infrastructure upgrades.

Rivian and Redwood Materials announce energy storage partnership for manufacturing. Largest repurposed battery energy storage system for a U.S. automotive manufacturer to cut energy costs, support grid reliability. NORMAL, Ill. / Apr 14, 2026 / Business Wire / American automotive and technology company Rivian (NASDAQ: RIVN) and critical materials and energy technology company Redwood Materials today announced a partnership to deploy pioneering battery energy storage at Rivian's Normal, Illinois manufacturing facility. Using more than 100 second-life Rivian battery packs, Redwood and Rivian's solution will initially provide 10 megawatt-hours (MWh) of dispatchable energy to reduce cost and grid load during peak demand periods - saving on cost and supporting grid security and reliability. Rivian will provide EV battery packs to Redwood, who will integrate them into a Redwood Energy system, supported by the company's Redwood Pack Manager technology, allowing their stored energy to be used on-site by Rivian's plant in Normal. This system is rapidly scalable and offers significant cost benefits by using safe and proven EV batteries. This approach enables faster, more flexible deployment of energy capacity directly at high-demand sites like manufacturing facilities. To capture and balance the growth in peak electricity demand expected, the U.S. must deploy massive amounts of energy storage. By 2030, estimates are that over 600GWh of storage is needed to meet growing demand, stabilize peaks, and power the technology innovation of the 21st century. This represents a virtual reservoir equivalent to the total energy output of the Hoover Dam running for two months straight. "EVs represent a massive, distributed and highly competitive energy resource," said Rivian Founder and CEO RJ Scaringe. "As energy needs grow, our grid needs to be flexible, secure, and affordable. Our partnership with Redwood enables us to utilize our vehicle's batteries beyond the life of a vehicle and contribute to grid health and American competitiveness." "Electricity demand is accelerating faster than the grid can expand, posing a constraint on industrial growth," said JB Straubel, Redwood Materials Founder and CEO. "At the same time, the massive amount of domestic battery assets already in the U.S. market represents a strategic energy resource. Our partnership with Rivian shows how EV battery packs can be turned into dispatchable energy resources, bringing new capacity online quickly, supporting critical manufacturing, and reducing strain on the grid without waiting years for new infrastructure. This is a scalable model for how we add meaningful energy capacity in the near term." EV batteries are often the longest-lived part of the vehicle itself, designed to last many hundreds of thousands of miles and, in many cases, to remain healthy even when the vehicle is retired, they are extremely valuable as stationary energy storage devices. Stationary energy storage technologies play a key role in reducing cost and increasing stability both for the customer and the grid at large. For example, during periods of peak demand like heat waves, Rivian can instantly deploy energy stored in its second-life batteries to offset increased strain on the grid, avoiding having to purchase more expensive electricity while also avoiding additional load on the power system. Redwood's deep expertise in battery systems and power integration positions the company to capture a massive domestic supply of energy storage that is already accumulating. By transitioning these packs into stationary assets before recycling them, Green Stock News LLC can extend their useful life, decrease reliance on imported energy storage, and defer billions of dollars in costly infrastructure upgrades. About Rivian Rivian (NASDAQ: RIVN) is an American automotive technology company that develops and manufactures category-defining electric vehicles as well as vertically integrated technologies and services. Through innovation across its electrical architecture, end-to-end software, autonomous driving platform, artificial intelligence and propulsion, the company creates vehicles that excel at work and play while accelerating the global transition to zero-emission transportation and energy. Rivian vehicles are manufactured in the United States and are sold directly to consumer and commercial customers. Whether taking families on new adventures or electrifying fleets at scale, Rivian vehicles all share a common goal - preserving the natural world for generations to come. About Redwood Materials Redwood Materials is building the U.S. stockpile of critical materials and deploying large-scale energy storage. Founded by JB Straubel, the company produces lithium, nickel, cobalt, copper, and cathode active material at scale in the U.S., manufactures key components for advanced batteries, and deploys energy storage systems that power data centers and the nation's grid. Redwood is expanding domestic capacity for next-generation energy storage and strengthening U.S. energy dominance. Plug into more green stock news. Tap into the pulse of emerging green sectors every morning. Top daily headlines from clean energy, cleantech, cannabis, and sustainable transport stocks: