Sila Raises $300M to Expand Battery Materials Factory

Battery materials startup Sila announced Tuesday that it has raised $300 million to expand its factory in Washington State. The funding aims to ramp up production of its anode material, enough to supply batteries for more than 100,000 electric vehicles.

The expansion occurs amid a slowdown in electric vehicle demand in the U.S. Despite softer domestic sales, global EV market share is growing, with sales up 27% year-over-year according to Benchmark Minerals Intelligence.

Sila has previously secured deals to supply its anode material to Mercedes-Benz and Panasonic. Its customer base also includes companies in consumer electronics, drone manufacturing, and satellite technology.

Most current lithium-ion batteries utilize graphite anodes, a supply chain dominated by China (approximately 75%). This has prompted automakers outside China to seek alternative materials to avoid tariffs. Sila offers one of the few sufficiently scalable alternatives. Its anode material can store up to 40% more energy than traditional graphite anodes and allows for faster charging. The company has spent 15 years developing this material.