Pentagon Backs Sila with $1.4 Billion to Scale Silicon-Carbon Battery Production
AI-generated image · US National Wire
The U.S. Department of Defense is funding a massive expansion of Sila's Washington state facility to reduce reliance on Chinese graphite supply chains.
The U.S. Department of Defense has issued a $1.4 billion loan to Sila, a U.S.-based startup, to scale the production of its silicon-carbon battery material, as TechCrunch first reported. The move comes as defense contractors and automotive companies struggle to source battery materials outside of China, which currently dominates the graphite supply chain used in most lithium-ion battery anodes.
Sila's material offers a 20% to 40% increase in electricity storage over graphite, enabling lighter batteries or longer-lasting cells for electric vehicles and drones. Sila currently operates a factory in Moses Lake, Washington, which began production in September and has an annual capacity of 2 gigawatt-hours. The company intends to expand this facility fivefold, which would provide enough material for over 100,000 EVs.
While Sila has already secured deals with Panasonic and Mercedes, TechCrunch notes that the Pentagon loan may facilitate new contracts with defense firms amid ongoing conflicts in Ukraine and Iran. The company previously raised $300 million in July—led by Sutter Hill Ventures and Atreides Management—and PitchBook data indicates the company has secured more than $1.5 billion from private investors.
Sila is not the only company receiving government support to decouple critical supply chains. TechCrunch reports the Department of Defense also announced a $400 million loan to Australian firm Sunrise Energy Metals for scandium mining, a $150 million loan to Minnesota-based Niron Magnetics for rare earth-free magnets, and an $85 million equity investment in Strategic Bauxite.