In recent years, Redwood Materials has significantly expanded its operations, moving beyond its headquarters in Carson City, Nevada. The lithium-ion battery recycling and materials startup has secured partnerships with companies such as Toyota, Panasonic, and General Motors. They have also commenced construction on a new factory in South Carolina and have acquired a European battery recycler.
Despite this growth, the company identified a gap in its 1,100-person workforce, according to Chief Technology Officer Colin Campbell. The solution to this gap is a new research and development center in San Francisco. Campbell, who joined from Tesla as CTO in August 2023, shared this information with TechCrunch.
Redwood Materials, founded by former Tesla CTO JB Straubel, has opened a 15,000-square-foot R&D facility in San Francisco’s Design District. This center is designed to support engineers working on various aspects of the battery ecosystem, including chemical engineering, cathode science, software, and electrical engineering. These efforts are aimed at enhancing cathode production, a critical component of Redwood’s business, which reported revenue of $200 million in 2024.
Currently, the San Francisco center houses a small number of engineers, but Campbell anticipates it will eventually employ around 50 or more individuals. Campbell noted the company’s success and revenue growth, yet emphasized the challenges in expanding their engineering team. San Francisco was a strategic choice due to its rich talent pool of hardware and software engineers.
Lithium-ion batteries consist of three essential components: two electrodes (an anode and a cathode) and an electrolyte that facilitates ion movement during charging and discharging. Cathode foils, containing lithium, nickel, and cobalt, represent more than half of a battery cell’s cost. Redwood recycles and processes these materials.
Beyond recycling, Redwood aims to construct a comprehensive battery ecosystem, encompassing the entire lifecycle of lithium-ion batteries. This includes recycling, refining, remanufacturing, and assessing and extending battery life. Campbell emphasized the importance of engineers working on equipment development for Redwood’s factories, noting the challenges of building such factories in the U.S. due to a lack of industrial base for advanced machinery.
Engineers at the R&D lab will also focus on developing battery diagnostic methods to assess battery health, which Campbell believes will enhance another aspect of the business. He highlighted the potential for diagnostic tools to improve the company’s efficiency by recycling bad battery packs directly.
Campbell indicated that while diagnostics may not dominate Redwood’s business, it aligns with the company’s principles. He expressed a commitment to extending the lifecycle of products and minimizing premature retirement, underscoring that it is the right approach for the ecosystem, even if it represents a smaller business segment.
