Sila has received a conditional loan commitment of up to $1.4 billion from the U.S. Department of War’s Office of Strategic Capital to support the expansion of domestic battery technology manufacturing.
The financing would support the expansion of Silicon-Carbon (Si/C) anode manufacturing capacity at Sila’s facility in Moses Lake, Washington, as well as the buildout of a lithium-ion battery cell manufacturing facility. The conditional commitment from the Office of Strategic Capital (OSC) follows a recent $300 million equity round led by Sutter Hill Ventures and Atreides Management.
The United States faces a structural deficit in domestically produced battery materials and high-performance battery cells. According to Sila, China currently controls over 90% of anode material processing and more than 80% of global battery cell production, leaving U.S. manufacturers of critical defense technologies, including drones and autonomous systems, exposed to supply risks associated with trade disputes, export restrictions, or supply disruptions.
The loan is intended to support a major expansion in production capacity at the Moses Lake facility using Sila’s next-generation modular manufacturing technology, designed to scale rapidly with demand. The funding is also intended to support the buildout of a silicon battery cell facility for specialty applications with rigorous performance requirements, including industrial, agricultural, and military drones.
Sila states that the initiative is intended to help the company push the limits of its Si/C anode technology, Titan Silicon®.
Gene Berdichevsky, Sila Co-Founder and CEO, commented, “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.”
Demand for batteries outside China is expected to triple over the next five years, according to Sila. The company states that it is the only advanced battery technology company in North America with GWh-scale operations. Sila identifies aerospace, drones, eVTOLs, robotics, autonomous vehicles, and AI data centers among the strategic industries for which high-performance, U.S.-produced battery cells are vital.
Following the conditional commitment, Sila must satisfy certain financial, legal, technical, and other conditions before entering into definitive financing documents.
