Sila raises $300 million to manufacture EV batteries

Despite a slight slowdown in the US electric vehicle market, battery technology startups continue to attract major investments. Specifically, Sila announced that it has raised $300 million to expand its factory in Washington state. This capital will be used to create production capacity for anode materials sufficient for over 100,000 EVs per year. This is reported by Techcrunch.com reports.

Sila's expansion plans come at a time when demand for EVs in the US has cooled slightly, but global growth is being observed. According to Benchmark Minerals Intelligence, global EV sales have increased by 27 percent compared to last year, indicating that the need for battery components remains high.

A worthy alternative to Chinese graphite

Currently, most lithium-ion batteries use graphite anodes, with nearly 75 percent of the supply chain controlled by Chinese companies. The silicon-anode material developed by Sila allows for reduced dependence on Chinese graphite. This is of strategic importance for Western automakers, especially amid tightening international trade restrictions and tariffs.

The company states that their new technology has up to 40 percent more energy storage capacity than traditional graphite anodes. Furthermore, batteries made with this material charge significantly faster. Sila has already signed supply agreements with giants like Mercedes-Benz and Panasonic, and is also collaborating with consumer electronics and drone manufacturers like Whoop.

Experience and future plans

Sila founder and CEO Gene Berdichevsky was one of the first employees at Tesla and has been researching batteries for over 15 years. The company's Moses Lake plant began operations in September of this year. New investments will help increase the plant's capacity to several tens of GWh.

Demand for batteries is not limited to the transport sector. The rapid growth of AI data centers is also increasing the need for energy storage systems (ESS). The technologies being developed by Sila are expected to play a key role in utilizing solar and wind energy around the clock and reducing loads on electrical grids.

This investment round was led by Atreides Management and Sutter Hill Ventures. Funds such as 8VC, Bessemer Venture Partners, and Matrix Partners also participated in the project. According to PitchBook, Sila has managed to raise a total of over $1.3 billion in capital to date.