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Former Tesla CTO’s battery recycling startup secures funding from Amazon
Redwood Materials, the battery recycling startup founded by former Tesla CTO JB Straubel, recently secured some funding from Amazon as part of the e-commerce giant’s efforts to reduce its emissions. Redwood is one of five companies that Amazon is investing in as part of its Climate Pledge Fund, which was announced last year and expected to cost about $2 billion.
In a statement about the five companies that received funding, Amazon CEO Jeff Bezos stated that firms like Redwood are “channeling their entrepreneurial energy into helping Amazon and other companies reach net zero by 2040 and keep the planet safer for future generations.” Amazon, for its part, appears to be interested in Redwood’s recycling technology, which could allow materials like lithium, cobalt, and nickel to be extracted from old smartphones and other consumer devices.
Redwood was founded by the former Tesla CTO in 2017 after seeing that the global shift to electric vehicles will likely cause unnecessary environmental damage from a surge in mining. Such a scenario would only happen, however, if there is no recycling system in place that would allow EV producers to reuse the materials that have already been used in their cars’ batteries. Speaking with the Financial Times, Straubel shared his vision for the transportation sector, which involves the mass adoption of EVs and a closed-loop battery recycling system.
“(My vision is a) world where all of the transportation is done by electric vehicles and we have batteries powering a sustainable world. And all of those batteries are able to be recycled and remanufactured many, many times so that we can have a nearly closed-loop,” Straubel said.
This same concept stands just as true in the consumer electronics sector, according to the former Tesla CTO. Straubel remarked that while batteries are bound to degrade with repeated use, the underlying elements that comprise them remain sealed from the environment. This meant that the batteries’ materials, most of which are very valuable, could be broken down and repurposed once more. If this is accomplished, the former Tesla executive believes that mining would not be as necessary anymore.
“There are a phenomenal amount of cell phones in the world that currently are being discarded as trash or thrown into a landfill. It’s a massive, untapped resource. If we can recover 98 or 99% of those materials and reuse them, we don’t need very much new material to keep that whole process running… Even though the battery is internally degraded, all of the same materials are still in there — all of the same atoms of lithium, nickel, and cobalt. You can still harness all of those same materials, but they need to be reprocessed and brought back to a state where they could be used again and built into a new battery,” Straubel remarked.
The exact amount of funding that Redwood Materials has acquired from Amazon has not been disclosed by either company, through the former Tesla executive noted that there was a potential for “partnership on a number of different levels” between the recycling startup and the e-commerce giant. One of these levels may include aiding Amazon in building and developing an end-of-life process for consumer electronics that are sold through its e-commerce platform so that the devices and their components could be reused.
Redwood Materials has remained mostly in stealth mode since its founding, though signs have emerged that the company may be part of Tesla’s efforts to develop its own battery recycling processes. One of these involves an existing partnership with Panasonic to reclaim the scrap that is generated from the battery cells currently produced at Tesla’s Gigafactory Nevada facility. Reports have indicated that Panasonic initially started a trial run with Redwood to reclaim more than 400 pounds of scrap from Giga Nevada, and the results were so successful that the Japanese firm raised its contract to 2 tons not long after.
News
Tesla confirms that it finally solved its 4680 battery’s dry cathode process
The suggests the company has finally resolved one of the most challenging aspects of its next-generation battery cells.
Tesla has confirmed that it is now producing both the anode and cathode of its 4680 battery cells using a dry-electrode process, marking a key breakthrough in a technology the company has been working to industrialize for years.
The update, disclosed in Tesla’s Q4 and FY 2025 update letter, suggests the company has finally resolved one of the most challenging aspects of its next-generation battery cells.
Dry cathode 4680 cells
In its Q4 and FY 2025 update letter, Tesla stated that it is now producing 4680 cells whose anode and cathode were produced during the dry electrode process. The confirmation addresses long-standing questions around whether Tesla could bring its dry cathode process into sustained production.
The disclosure was highlighted on X by Bonne Eggleston, Tesla’s Vice President of 4680 batteries, who wrote that “both electrodes use our dry process.”
Tesla first introduced the dry-electrode concept during its Battery Day presentation in 2020, pitching it as a way to simplify production, reduce factory footprint, lower costs, and improve energy density. While Tesla has been producing 4680 cells for some time, the company had previously relied on more conventional approaches for parts of the process, leading to questions about whether a full dry-electrode process could even be achieved.
4680 packs for Model Y
Tesla also revealed in its Q4 and FY 2025 Update Letter that it has begun producing battery packs for certain Model Y vehicles using its in-house 4680 cells. As per Tesla:
“We have begun to produce battery packs for certain Model Ys with our 4680 cells, unlocking an additional vector of supply to help navigate increasingly complex supply chain challenges caused by trade barriers and tariff risks.”
The timing is notable. With Tesla preparing to wind down Model S and Model X production, the Model Y and Model 3 are expected to account for an even larger share of the company’s vehicle output. Ensuring that the Model Y can be equipped with domestically produced 4680 battery packs gives Tesla greater flexibility to maintain production volumes in the United States, even as global battery supply chains face increasing complexity.
Elon Musk
Tesla Giga Texas to feature massive Optimus V4 production line
This suggests that while the first Optimus line will be set up in the Fremont Factory, the real ramp of Optimus’ production will happen in Giga Texas.
Tesla will build Optimus 4 in Giga Texas, and its production line will be massive. This was, at least, as per recent comments by CEO Elon Musk on social media platform X.
Optimus 4 production
In response to a post on X which expressed surprise that Optimus will be produced in California, Musk stated that “Optimus 4 will be built in Texas at much higher volume.” This suggests that while the first Optimus line will be set up in the Fremont Factory, and while the line itself will be capable of producing 1 million humanoid robots per year, the real ramp of Optimus’ production will happen in Giga Texas.
This was not the first time that Elon Musk shared his plans for Optimus’ production at Gigafactory Texas. During the 2025 Annual Shareholder Meeting, he stated that Giga Texas’ Optimus line will produce 10 million units of the humanoid robot per year. He did not, however, state at the time that Giga Texas would produce Optimus V4.
“So we’re going to launch on the fastest production ramp of any product of any large complex manufactured product ever, starting with building a one-million-unit production line in Fremont. And that’s Line one. And then a ten million unit per year production line here,” Musk stated.
How big Optimus could become
During Tesla’s Q4 and FY 2025 earnings call, Musk offered additional context on the potential of Optimus. While he stated that the ramp of Optimus’ production will be deliberate at first, the humanoid robot itself will have the potential to change the world.
“Optimus really will be a general-purpose robot that can learn by observing human behavior. You can demonstrate a task or verbally describe a task or show it a task. Even show it a video, it will be able to do that task. It’s going to be a very capable robot. I think long-term Optimus will have a very significant impact on the US GDP.
“It will actually move the needle on US GDP significantly. In conclusion, there are still many who doubt our ambitions for creating amazing abundance. We are confident it can be done, and we are making the right moves technologically to ensure that it does. Tesla, Inc. has never been a company to shy away from solving the hardest problems,” Musk stated.
Elon Musk
Rumored SpaceX-xAI merger gets apparent confirmation from Elon Musk
The comment follows reports that the rocket maker is weighing a transaction that could further consolidate Musk’s space and AI ventures.
Elon Musk appeared to confirm reports that SpaceX is exploring a potential merger with artificial intelligence startup xAI by responding positively to a post about the reported transaction on X.
Musk’s comment follows reports that the rocket maker is weighing a transaction that could further consolidate his space and AI ventures.
SpaceX xAI merger
As per a recent Reuters report, SpaceX has held discussions about merging with xAI, with the proposed structure potentially involving an exchange of xAI shares for SpaceX stock. The value, structure, and timing of any deal have not been finalized, and no agreement has been signed.
Musk appeared to acknowledge the report in a brief reply on X, responding “Yeah” to a post that described SpaceX as a future “Dyson Swarm company.” The comment references a Dyson Swarm, a sci-fi megastructure concept that consists of a massive network of satellites or structures that orbit a celestial body to harness its energy.
Reuters noted that two entities were formed in Nevada on January 21 to facilitate a potential transaction for the possible SpaceX-xAI merger. The discussions remain ongoing, and a transaction is not yet guaranteed, however.
AI and space infrastructure
A potential merger with xAI would align with Musk’s stated strategy of integrating artificial intelligence development with space-based systems. Musk has previously said that space-based infrastructure could support large-scale computing by leveraging continuous solar energy, an approach he has framed as economically scalable over time.
xAI already has operational ties to Musk’s other companies. The startup develops Grok, a large language model that holds a U.S. Department of Defense contract valued at up to $200 million. AI also plays a central role in SpaceX’s Starlink and Starshield satellite programs, which rely on automation and machine learning for network management and national security applications.
Musk has previously consolidated his businesses through share-based transactions, including Tesla’s acquisition of SolarCity in 2016 and xAI’s acquisition of X last year. Bloomberg has also claimed that Musk is considering a merger between SpaceX and Tesla in the future.
Tesla confirms that it finally solved its 4680 battery’s dry cathode process
Tesla Giga Texas to feature massive Optimus V4 production line
