Redwood Materials, a leading lithium-ion battery recycling and materials startup, has taken a significant step in its expansion plans with the opening of a new research and development center in San Francisco. The 15,000-square-foot facility, located in the city's Design District, will serve as a hub for engineers working on various aspects of the battery ecosystem, from chemical engineering and cathode science to software and electrical engineering.

The move marks a strategic effort by Redwood Materials to tap into the Bay Area's deep talent pool of hardware and software engineers, a crucial component in driving the company's growth and innovation. According to CTO Colin Campbell, a longtime Tesla veteran who joined Redwood Materials in August 2023, the company's ability to expand has been limited by its hiring capabilities. "We had a really good year, and we had great revenue," Campbell said. "And what's limiting our ability to expand the engineering team is hiring. We just need to expand the aperture of where we can hire from. And San Francisco was sort of a logical place for a bunch of different reasons."

The new R&D center will focus on improving cathode production, a critical component of Redwood Materials' business, which generated $200 million in revenue in 2024. The facility will eventually employ around 50 engineers, who will work on developing novel process equipment engineering, a key area of focus for Campbell. "A major part of why they're (factories) are hard to build in the U.S, is that the U.S. doesn't have the industrial base to make a bunch of this machinery, and in particular, to make novel and cost-effective machinery," he explained.

In addition to equipment development, engineers at the lab will also work on battery diagnostic methods to help understand the health of a battery pack. Campbell believes this could have significant benefits for the company's bottom line. "I think it's important to start with the foundation of the business, which is battery materials, and we rest all of these other projects on top of them," he said. "So if we're receiving packs, and we diagnose it, and it actually is bad, that's a great advantage to us to just recycle it directly — I think it could be significant."

Redwood Materials, founded by former Tesla CTO JB Straubel, has raised over $2 billion in private funds and is building an end-to-end battery ecosystem that touches the full life cycle of lithium-ion batteries at every stage, including recycling, refining, remanufacturing, as well as assessing the health and extending the life of the battery. The company's commitment to sustainability is reflected in its approach to battery recycling and processing, which captures all critical materials, including lithium, nickel, and cobalt.

The expansion into San Francisco marks a significant milestone for Redwood Materials, which has been on an expansion tear in recent years, locking up deals with major players like Toyota, Panasonic, and GM, and starting construction on a South Carolina factory. With its new R&D center, the company is poised to drive innovation and growth in the lithium-ion battery ecosystem, further solidifying its position as a leader in the industry.