Redwood Materials Expansion: New R&D Center in San Francisco

Redwood Materials Expands with New San Francisco R&D Center

Recent years have witnessed substantial growth for Redwood Materials, a lithium-ion battery recycling and materials company. This expansion has broadened the startup’s operational scope beyond its initial base in Carson City, Nevada.

Strategic partnerships with industry leaders like Toyota, Panasonic, and GM have been instrumental in this growth. Furthermore, construction has commenced on a new facility in South Carolina, and an acquisition was completed in Europe.

Despite this progress, Colin Campbell, Redwood Materials’ CTO, identified a crucial need within the company’s 1,100-person team. San Francisco emerged as the solution, according to Campbell, a veteran of Tesla who assumed the role of CTO in August 2023.

New R&D Facility Details

Founded by former Tesla CTO JB Straubel, Redwood Materials is addressing this gap with a new research and development center situated in San Francisco. The 15,000-square-foot facility, located in the city’s Design District, provides dedicated lab space.

This space will support engineers working across the entire battery ecosystem. Areas of focus include chemical engineering, cathode science, software development, and electrical engineering. This work is expected to contribute to improvements in cathode production, a key aspect of Redwood’s operations.

The company reported $200 million in revenue for 2024, demonstrating its financial strength.

Currently, only a small team of engineers occupies the center, which Redwood moved into recently. However, Campbell anticipates that the facility will eventually house 50 or more employees.

“We experienced a successful year with significant revenue,” Campbell stated. He added that the company’s expansion has been constrained by hiring challenges. “Expanding our hiring reach was essential, and San Francisco proved to be a logical choice for several reasons.”

A primary factor is the concentration of skilled hardware and software engineers in the Bay Area.

The Core Components of Lithium-Ion Batteries

Lithium-ion batteries are comprised of three essential components. These include two electrodes – an anode (negative) and a cathode (positive) – separated by an electrolyte that facilitates ion movement during charging and discharging.

Cathode foils, representing over half the cost of a battery cell, contain vital materials like lithium, nickel, and cobalt. Redwood Materials is capable of recovering all of these materials through its battery recycling and processing technologies.

However, Redwood’s ambitions extend beyond mere recycling. The startup, having secured over $2 billion in private funding, is developing a comprehensive battery ecosystem.

This ecosystem encompasses the entire lithium-ion battery lifecycle, including recycling, refining, remanufacturing, and battery health assessment and life extension.

Focus on Equipment Development and Battery Diagnostics

Campbell emphasized the importance of engineers focusing on the development of equipment for Redwood’s manufacturing facilities.

“The difficulty in establishing these factories within the U.S. stems from a lack of domestic industrial capacity to produce the necessary machinery, particularly innovative and cost-effective equipment,” he explained. “Therefore, novel process equipment engineering is a critical area of focus.”

Engineers at the new lab will also dedicate efforts to developing advanced battery diagnostic methods. This will enable a better understanding of battery pack health, potentially benefiting another segment of the business.

“Our foundation is battery materials, and all other projects are built upon this base,” Campbell said, noting that improved diagnostics could positively impact profitability. “Accurately diagnosing battery packs allows us to efficiently recycle those that are beyond repair, which could be a significant advantage.”

Campbell clarified that battery diagnostics are not expected to become Redwood’s primary revenue stream, but align with the company’s core values.

“We fundamentally believe in maximizing the lifespan of products before decommissioning them,” he stated. “Even if it doesn’t become a major business segment, it’s the responsible approach for this ecosystem. And it’s something we are committed to doing.”