Redwood Materials Is Cutting 10 Percent of Its Staff and Losing Its COO
Redwood Materials, the battery recycling startup founded by former Tesla co-founder JB Straubel, is laying off approximately 135 employees — about 10 percent of its workforce — and its chief operating officer is retiring. The restructuring is part of a broader realignment toward the company's growing energy storage business, but the timing and scope of the leadership departures suggest deeper organizational turbulence.
What Is Happening at Redwood
Chris Lister, who joined as chief supply chain officer in late 2023 and was promoted to COO in 2024, is retiring. His departure follows a pattern: at least three other senior Tesla alumni at Redwood have left in recent months. Bradley Mayhew (VP integrated supply chain) departed in April, Guillermo Urquiza (VP mechanical engineering) left in March, and Carlos Lozano (VP manufacturing) left for Panasonic.
Straubel's explanation was measured: "We can deliver on our critical projects with a smaller team that is more focused." He acknowledged the company expanded faster than necessary in some areas.
Why This Is More Than Routine Cost-Cutting
Redwood's core business — recycling lithium-ion battery materials and selling back anode and cathode components to battery manufacturers — is a capital-intensive, long-cycle business that depends heavily on operational execution. The departures of four senior manufacturing and supply chain leaders in a single quarter is not routine attrition. It suggests significant organizational friction at exactly the layer of the company where battery recycling is hardest to execute.
The EV Battery Recycling Bet
Redwood has raised over $2 billion and secured commitments from major automakers and battery manufacturers. The thesis is sound: as EV adoption grows, the supply of end-of-life batteries needing recycling grows with it, and the demand for recycled cathode materials reduces dependence on mining. The business model works in theory. The challenge is executing a complex chemical manufacturing operation at scale.
My Take
JB Straubel built Tesla's battery manufacturing operation from scratch. He knows what it looks like when an operational team is working and when it isn't. The combination of layoffs and simultaneous departure of four manufacturing VPs suggests Redwood is resetting its execution strategy, not just trimming headcount. The energy storage pivot may be the result — a simpler near-term revenue path while the recycling economics mature.
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