Sila, a leading battery materials startup, has announced a substantial funding round, securing £235 million ($300 million) to dramatically scale up production at its factory in Washington state. This significant investment will enable the company to manufacture enough of its advanced silicon-carbon anode material to power more than 100,000 electric vehicles (EVs) annually, a move that could reshape the global battery supply chain.
The expansion comes at a pivotal time for the electric vehicle market. While the US has experienced a softening in demand, with sales down compared to 2025, the global picture remains robust. According to Benchmark Minerals Intelligence, worldwide EV sales have surged by 27% year-over-year, indicating a strong international appetite for electric transport. Sila's strategic growth positions it to capitalise on this global uptake, offering a critical component for the next generation of EVs.
Sila's innovative anode material is a key differentiator in the battery sector. Unlike most lithium-ion batteries that rely on graphite anodes, Sila's silicon-carbon alternative can store up to 40% more energy and facilitates faster charging. This technological advantage is the culmination of 15 years of development, spearheaded by founder and CEO Gene Berdichevsky, an early employee at Tesla. The company has already established supply agreements with major players such as Mercedes and Panasonic, alongside supplying consumer electronics firms and drone manufacturers.
A significant driver behind the search for alternative battery materials is the current reliance on Chinese companies, which control approximately three-quarters of the global graphite anode supply chain. Automakers outside of China are actively seeking diversified sources to mitigate geopolitical risks and potential tariffs. Sila's material is one of the few viable alternatives currently available in sufficient quantities, offering a crucial step towards a more resilient and geographically diverse supply chain.
The Moses Lake, Washington plant, which commenced production in September last year, currently has the capacity to produce up to 2 gigawatt-hours of silicon-carbon anode material. The newly announced expansion will dramatically increase this to tens of gigawatt-hours per year. Beyond EVs, the demand for lithium-ion batteries is also growing in energy storage systems, particularly for AI data centres and grid-scale applications, which require reliable backup power and solutions for managing peak demand and integrating renewable energy sources.
The recent funding round was led by Atreides Management and Sutter Hill Ventures, with additional participation from 8VC, Bessemer Venture Partners, Matrix Partners, and funds and accounts advised by T. Rowe Price Associates Inc. This latest injection of capital adds to Sila's previous fundraising efforts, which, according to PitchBook, amounted to approximately £1.02 billion ($1.3 billion) across prior rounds.