Redwood Materials Expands with New R&D Facility in San Francisco
Redwood Materials, a rapidly growing startup focused on lithium-ion battery recycling and materials, has been broadening its reach over the past few years. The company, which is headquartered in Carson City, Nevada, has secured collaborations with major players like Toyota, Panasonic, and GM. Additionally, it has begun constructing a factory in South Carolina and made an acquisition in Europe.
Addressing Workforce Needs
Despite this significant growth, Colin Campbell, Redwood’s Chief Technology Officer, identified a missing piece within the 1,100-strong team. His solution was to establish a new research and development center in San Francisco. Campbell, who joined Redwood from Tesla in August 2023, believes this location will help bridge the gap, especially given the Bay Area’s rich talent pool.
The new 15,000-square-foot facility, situated in the Design District, is designed to house engineers working across various aspects of the battery ecosystem. This includes fields like chemical engineering, cathode science, and software development. The R&D efforts are particularly focused on enhancing cathode production, a critical part of Redwood’s operation that yielded revenues of $200 million in 2024.
Growing the Team
Though the center has only recently opened and currently employs a small number of engineers, Campbell anticipates expanding the team to around 50 or more in the near future. “We had a really good year, and we had great revenue,” he stated. “However, our growth potential has been somewhat hindered by recruitment challenges. Expanding the range of our hiring sources became essential, and San Francisco provided a logical choice due to its extensive pool of skilled engineers.”
Building an End-to-End Battery Ecosystem
Redwood Materials is not just focused on recycling batteries; the startup aims to create a complete battery ecosystem that addresses every aspect of lithium-ion batteries’ life cycles, from recycling to remanufacturing and longevity assessment. The company has successfully raised over $2 billion in private funding to achieve its ambitions.
One area of emphasis for the engineering team will be the development of machinery for Redwood’s manufacturing processes. Campbell noted, “One of the significant challenges in building factories in the U.S. is the lack of industrial capabilities to produce specialized and cost-effective machinery.” Innovative equipment engineering is therefore crucial for their operations.
Innovative Diagnostic Methods
In addition to machinery development, the lab will be focused on advancing diagnostics for battery health, a feature that could enhance Redwood’s overall operations. Campbell emphasized the importance of a strong foundation in battery materials, suggesting that effective diagnostic methods could provide a competitive edge. “If we receive battery packs and find they are defective, we can quickly recycle them. This could lead to significant advantages,” he explained.
While Campbell doesn’t foresee diagnostics becoming a primary revenue source for Redwood, he believes it aligns with the company’s core values. “We have a fundamental aversion to discarding items before their time,” he expressed. “Even if it doesn’t represent a major segment of the business, it’s the right decision for the ecosystem, and we’re committed to doing it.”
