Sila has received a conditional loan commitment of up to $1.4 billion from the U.S. Department of War through its Office of Strategic Capital to expand domestic production of advanced battery materials and cells. The financing would support an expansion of Sila’s silicon-carbon anode manufacturing capacity at its Moses Lake, Washington, facility and the development of a lithium-ion battery cell manufacturing facility.
The conditional commitment follows a recent $300 million equity financing led by Sutter Hill Ventures and Atreides Management.
Sila develops silicon-carbon anode technology marketed as Titan Silicon, which is designed to improve battery performance across applications including drones, satellites, electronics, robotics, artificial intelligence infrastructure and electric vehicles.
The company plans to use the new financing to significantly increase production at Moses Lake using a next-generation modular manufacturing system designed to scale as demand increases.
Sila also plans to build a silicon battery cell facility focused on specialty applications with demanding performance requirements, including industrial, agricultural and military drones.
The company views domestic battery manufacturing as a strategic supply chain priority. Sila said China currently controls more than 90% of anode material processing and more than 80% of global battery cell production.
That concentration creates supply risks for U.S. industries dependent on high-performance batteries, including defense technologies, autonomous systems, aerospace, robotics and eVTOL aircraft.
Sila said demand for batteries produced outside China is expected to triple over the next five years.
The company describes itself as the only next-generation battery technology business in North America currently operating at gigawatt-hour scale.
Sila’s Moses Lake facility is intended to provide U.S.-manufactured advanced anode material for industries requiring higher-energy battery technologies and more secure domestic supply chains.
The planned battery cell facility would also allow Sila to further develop and demonstrate the performance limits of its Titan Silicon technology in complete cells.
Sila was founded in 2011, and its silicon-carbon anode technology launched commercially in 2021.
The company is backed by investors including 8VC, Atreides Management, Bessemer Venture Partners, Coatue, In-Q-Tel, Matrix Partners, Sutter Hill Ventures, and funds and accounts advised by T. Rowe Price Associates.
The Office of Strategic Capital commitment remains conditional. Sila must satisfy financial, legal, technical and other requirements before definitive financing documents can be executed.
KEY QUOTE:
“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 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.”
Gene Berdichevsky, Co-Founder and CEO of Sila
