Redwood Materials, the battery recycling company started by a former Tesla executive, just lost its chief operating officer and laid off workers. At least four top executives have left the company during a major restructuring.
This is a big deal because Redwood was supposed to help solve America’s battery problem. As more people buy electric cars, we need better ways to recycle old batteries instead of mining new materials from the ground.
The Tesla Connection Crumbles
Redwood Materials was founded by JB Straubel, who used to be Tesla’s chief technology officer. The company raised billions of dollars with the promise of creating a “circular economy” for batteries – basically recycling old car batteries into new ones.
Chris Lister, the departing COO, was also a Tesla veteran. His retirement, along with three other vice presidents leaving, suggests the company is having serious problems behind the scenes. When multiple executives leave at once, it usually means the business isn’t going as planned.
The timing is awkward. Electric vehicle sales are growing, and the government is pushing hard for American-made batteries. Companies like Redwood were supposed to be the solution to our dependence on Chinese battery materials.
What’s Next
Redwood still has plenty of money in the bank and partnerships with major car companies. But losing this many leaders at once raises questions about whether their ambitious recycling plans are actually working. The company hasn’t said how many people were laid off or what went wrong.