Launch of Sila battery materials was announced On Tuesday it raised $300 million to expand its factory in Washington state to produce enough anode material for more than 100,000 EVs.
SheilaIts expansion comes as demand for electric vehicles in the US has softened in the wake of the Trump administration’s efforts to restrict propulsion technology. While sales they remain depressed in the U.S., down this year from 2025, when demand soared before the sunset of the tax credits, electric cars are taking a bigger share of the market elsewhere. According to According to Benchmark Minerals Intelligence, global sales are up 27% year-on-year.
Sila previously announced agreements to supply its anode material to Mercedes and Panasonic. It also sells to consumer electronics companies like Whoop and to drone manufacturers and satellite companies.
Most lithium-ion batteries today use graphite anodes, and Chinese companies control about three-quarters of the supply chain, according to in Benchmark Minerals Intelligence. This has prompted automakers outside of China to look for duty-free alternatives.
Sila’s anode material is one of the few alternatives available in sufficient quantity.
In addition to being an alternative to Chinese graphite, Sila’s anode material can store up to 40% more energy than traditional graphite anodes. It can also charge faster. Sila has been developing the hardware for the past 15 years. Its founder and CEO, Gene Berdichevsky, previously worked at Tesla, where he was the seventh employee.
The startup began production at its Moses Lake, Washington, plant last September. The plant is capable of producing up to 2 gigawatt hours of silicon-carbon anode material. The expansion will allow the plant to produce tens of gigawatt hours per year, enough to power more than 100,000 EVs.
While EVs are the largest user of lithium-ion batteries, energy storage systems have captured a larger share of the market as demand for electricity increases. AI data centers have become major buyers of grid-scale batteries. The packs can serve as back-up power sources, help reduce peak charges, and allow solar and wind power to be used around the clock.
The new round was led by Atreides Management and Sutter Hill Ventures with participation from 8VC, Bessemer Venture Partners, Matrix Partners and funds and accounts advised by T. Rowe Price Associates Inc. Sila previously raised about $1.3 billion in previous rounds, according to PitchBook.
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