Battery recycling startup Redwood Materials laid off approximately 135 employees — 10% of its workforce — on April 21, its second reduction in five months after a 5% cut in November 2025. CEO JB Straubel said parts of the company "expanded faster than needed" and the cuts realign engineering and operations around a growing energy storage business, which now serves Crusoe AI and Rivian by providing recycled batteries for on-site power. The restructuring follows a $425 million raise that valued the company above $6 billion, with Google among backers; Straubel noted competitor Ascend Elements has already filed for bankruptcy as the broader battery supply landscape consolidates.