JB Straubel on Redwood Materials and the Importance of Maintaining a Startup Mindset
JB Straubel has worn many hats in his career, but at heart, he’s an engineer. As the co-founder of Tesla, a member of its board, and the founder and CEO of battery materials and recycling startup Redwood Materials, Straubel has helped build some of the most technically challenging and industry-leading companies in the world.
In a fireside interview at TechCrunch Disrupt, Straubel discussed his passion for engineering and how it drives his work. "I think of myself first and foremost as an engineer," he said. "That’s actually what I love doing the most, and I feel like all these other activities are derived out of that. I don’t usually go seeking an entrepreneurial challenge or even sometimes seeking a company."
Despite being part of two public companies – Tesla and QuantumScape – Straubel emphasized the importance of maintaining a startup mindset. "I think the psyche of being a startup company is really important," he said. "It’s hard to simulate. You can’t really make that up."
Redwood Materials, which Straubel founded in 2017, has made significant progress in recycling batteries. The company currently recycles 10-15 GWh of batteries per year, but its goal is to hit 300-500 GWh per year by 2030 or 2035. This would be a massive achievement, as it would account for only 25% to 30% of the total market share.
However, Straubel expressed concerns about achieving this scale in such a short time frame. "I worry about how long it will take us to achieve these scales, even in the midst of this industry growing so fast," he said. "That’s probably my biggest concern is achieving that scale."
The Challenge of Scaling and Maintaining Innovation
Redwood Materials has received significant funding, with over $2 billion raised, including a Series D round of over $1 billion. This has allowed the company to swell to a workforce of 700-800 people. However, Straubel emphasized that despite this growth, Redwood is still a startup.
"We’re at the very earliest stages of revenue," he said. "We’re at the earliest stages of executing a multi-year capex deployment plan and building plan. I feel like we haven’t really turned a corner on having a massive impact on what we’re trying to achieve yet."
Straubel also discussed the challenges of scaling while maintaining innovation and creativity. "When you start to get bigger, you have to give up some of your dynamic nature," he said. "You have to become more bureaucratic, and that’s hard to maintain."
The Importance of Maintaining a Startup Mindset
Despite the challenges of scaling, Straubel emphasized the importance of maintaining a startup mindset. This involves staying agile and adaptable, as well as being willing to take risks.
"I think it’s really important for companies like Redwood Materials to continue to have that startup mentality," he said. "We need to be able to move quickly and make decisions fast."
Straubel also emphasized the importance of innovation in maintaining a competitive edge. "Innovation is what drives us forward," he said. "It’s what allows us to stay ahead of the curve and make progress."
Conclusion
JB Straubel’s passion for engineering and his commitment to maintaining a startup mindset are key drivers of Redwood Materials’ success. As the company continues to grow and scale, it will be essential to balance innovation with the need for bureaucracy and process.
By staying true to its roots as a startup, Redwood Materials can continue to make progress towards its goals and maintain its competitive edge in the industry.
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About the Author
Aria is a technology journalist who covers the latest news and trends in the tech industry. She has written for various publications, including MIT’s Undark Magazine, The Verge, and Discover Magazine.
