Sila has secured a conditional loan commitment of up to $1.4 billion from the US Department of War to dramatically expand domestic battery manufacturing.

 

This will strengthen the American supply chain for technologies ranging from drones and robotics to autonomous systems and AI infrastructure.

 

The financing would support an expansion of Sila’s silicon-carbon (Si/C) anode manufacturing operation in Moses Lake, Washington, along with the construction of a lithium-ion battery cell manufacturing facility.

 

The commitment from the department’s Office of Strategic Capital (OSC) follows a $300 million equity financing round led by Sutter Hill Ventures and Atreides Management.

 

The investment comes as the United States faces a major dependence on China for critical battery materials and manufacturing. China currently controls more than 90% of anode material processing and more than 80% of global battery cell production, creating a significant vulnerability for U.S. manufacturers of critical technologies.

 

A trade dispute, export restrictions or other supply disruptions could ripple across industries that increasingly depend on advanced batteries, from military drones and autonomous systems to aerospace and robotics.

 

Sila says the new financing would help address that vulnerability by moving more of the battery supply chain onto US soil.

 

“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,” said Gene Berdichevsky, Sila Co-Founder and CEO. “By scaling our manufacturing at home, we are ensuring critical technology sectors have the supply chain security they need to thrive.”

 

The loan would enable Sila to significantly increase production at its Moses Lake facility using a new generation of modular manufacturing technology designed to scale quickly as demand rises.

 

The company also plans to build a silicon battery cell facility aimed at specialty markets with demanding performance requirements, including industrial, agricultural and military drones.

 

The expansion would further commercialize Sila’s Titan Silicon silicon-carbon anode technology, which the company says can help push battery performance beyond the limits of conventional graphite-based anodes.

 

Sila says battery demand outside China is expected to triple over the next five years and describes itself as the only next-generation battery technology company in North America with GWh-scale operations.

 

The stakes extend well beyond electric vehicles. High-performance batteries produced in the United States are increasingly critical to aerospace, drones, electric vertical takeoff and landing aircraft, robotics, autonomous vehicles and AI data centers.

 

As battery power becomes increasingly central to the global economy and national security, Sila is positioning its Moses Lake operations as a key piece of a more secure U.S. battery supply chain.

 

The $1.4 billion commitment is not yet a finalized loan. Sila must first satisfy financial, legal, technical and other conditions before the company can enter into definitive financing agreements.