Tesla Veterans Build $6B Battery Recycling Powerhouse

The batteries powering today's electric revolution don't have to become tomorrow's waste problem, and one company is proving it at massive scale.

Redwood Materials just hired Deepak Ahuja, Tesla's former CFO, to help scale a business that's turning end-of-life batteries into something remarkable. The company extracts valuable minerals like lithium, cobalt, and nickel from spent batteries, then uses those materials to build new battery cells and energy storage systems.

Ahuja joins founder JB Straubel, Tesla's former chief technology officer, in a reunion 18 years in the making. "Knowing JB for the last 18 years, I have huge respect for him as a leader, an engineer and as a thinker," Ahuja told CNBC.

The Carson City, Nevada company has raised over $2.3 billion from investors including Google, Microsoft, and Nvidia, plus secured a $2 billion loan commitment from the Department of Energy. That vote of confidence reflects the urgent need for domestic mineral supply chains.

Beyond recycling, Redwood Materials is solving another critical problem: what to do with EV batteries that still work but can't power cars anymore. These "second-life" batteries get transformed into energy storage systems that capture solar and wind power for later use.

The Ripple Effect

The impact extends far beyond individual batteries. Redwood Materials just completed what it calls the world's largest second-life battery deployment in Abilene, Texas, a 63 megawatt-hour microgrid powering AI infrastructure.

These storage systems are becoming essential as America's data centers boom and renewable energy expands. Without battery storage, the electrical grid can't handle the intermittent nature of solar and wind power or meet growing industrial demand.

The company is already working with major automakers like Ford and Rivian, creating a closed loop where old vehicle batteries become raw materials for new ones. This keeps critical minerals circulating within the country rather than depending on foreign supply chains.

Even after implementing a 10% workforce reduction in April to refocus on its energy division, the company's fundamentals remain strong. Founder Straubel told employees the materials business is approaching profitability with "great momentum in Redwood Energy."

Ahuja brings experience from navigating Tesla through its 2010 IPO and recent work at Zipline, the world's largest drone delivery company. His financial expertise will prove crucial as Redwood Materials scales both its recycling and energy storage operations.

The transition to electric vehicles is creating an unexpected treasure: millions of batteries that still hold value long after their road life ends, and this company is mining that opportunity while strengthening America's energy independence.