Key facts
- Sila raised $300 million to expand its battery materials factory in Washington State.
- The expansion is intended to produce anode material for over 100,000 electric vehicles annually.
- Sila's silicon-carbon anode material can store up to 40% more energy than traditional graphite anodes and charges faster.
- Global EV sales have increased 27% year over year, contrasting with a slowdown in U.S. demand.
- The company has existing supply agreements with Mercedes, Panasonic, and consumer electronics firms.
Battery materials startup Sila announced Tuesday it has secured $300 million in funding to expand its manufacturing facility in Moses Lake, Washington. The expansion is designed to increase production capacity to supply anode material for over 100,000 electric vehicles annually.
This expansion comes at a time when U.S. electric vehicle demand has softened, partly attributed to policy shifts. However, global EV sales have seen a significant increase of 27% year over year, according to Benchmark Minerals Intelligence.
Sila's silicon-carbon anode material is positioned as an alternative to graphite anodes, which are largely controlled by Chinese companies. The company's material offers advantages such as storing up to 40% more energy and enabling faster charging compared to traditional graphite anodes. Sila has been developing this technology for 15 years.
The company has existing agreements to supply its anode material to Mercedes and Panasonic, as well as to manufacturers in the consumer electronics, drone, and satellite sectors. Sila began production at its Washington plant in September, with the current capacity at 2 gigawatt-hours. The planned expansion aims to reach tens of gigawatt-hours per year.
Beyond EVs, lithium-ion batteries are increasingly used in energy storage systems, with AI data centers emerging as significant buyers for grid-scale applications. The new funding round was led by Atreides Management and Sutter Hill Ventures, with participation from several other venture capital firms. Sila has previously raised approximately $1.3 billion across earlier funding rounds.