Demand for batteries outside China will triple in the coming five years, says Sila. There is a conditional loan commitment secured by Sila from the US Department of War for as much as $1.4 billion to massively scale up domestic battery manufacturing.
That will boost American supply chains for technologies that range from drones as well as robotics to autonomous systems along with AI infrastructure.
The Conditional Loan Commitment Secured by Sila will support a $347 million expansion of silicon-carbon – Si/C anode manufacturing operation from the company in Moses Lake, Washington, as well as a lithium-ion battery cell manufacturing facility.
The commitment from the Office of Strategic Capital – OSC of the department comes after a $300 million equity financing round conducted by Sutter Hill Ventures and Atreides Management.
The investment comes amid a major reliance by the United States on China in terms of critical battery materials and manufacturing. China now dominates over 90% of processing of anode materials and also more than 80% of global battery cell production, resulting in a major risk for U.S. manufacturers in terms of critical technologies.
Industries such as autonomous systems and military drones, as well as aerospace and robotics, are growingly relying on advanced batteries and could all be affected by a trade spat, export limitations, or even other supply disruptions.
As per Sila, the new financing will help fix that vulnerability by shifting a greater portion of the battery supply chain to U.S. soil. As per Co-Founder and CEO of Sila, Gene Berdichevsky, ” We solved the hardest problem in battery materials with the invention of the modern silicon anode. But invention is only the first step – manufacturing it at a gigascale, here in America, proves that technology sovereignty is possible. By scaling our manufacturing at home, we are ensuring critical technology sectors have the supply chain security they need to thrive.”
The loan will allow Sila to substantially raise the production at its Moses Lake facility with a next generation of modular manufacturing technology that can scale fast along with demand.
The company also plans to construct a silicon battery cell facility targeted at specialty markets with high-demand performance needs such as industrial, agricultural, and military drones.
The expansion would further commercialize the Titan Silicon silicon-carbon anode technology of the company, which it says can help boost battery efficiency beyond the boundaries of traditional graphite-based anodes.
The demand for batteries outside of China is projected to triple in the subsequent five years, says Sila, adding it is the only next-generation battery technology company in North America having GWh-scale operations.
It’s much more than electric vehicles at stake. High-performance batteries made in the U.S. are becoming increasingly important when it comes to aerospace, electric vertical takeoff, drones, landing aircraft, robotics, autonomous vehicles, and AI data centers.
As battery power plays a more central role in the global economy and national security, Sila is establishing its Moses Lake operations as an essential component of a more secure U.S. battery supply chain.
It is well to be noted that the $1.4 billion commitment to lift-up domestic battery manufacturing is still a promise, not a final loan. The company can only enter into definitive financing agreements after Sila has met financial, legal, and technical as well as other conditions.