Sila has secured a $1.4 billion loan from the US Department of Defense to expand production of its silicon-carbon battery material in the United States. The funding comes as US automakers and defense companies seek alternatives to China-dominated battery supply chains.
Sila’s silicon-based anode material can store 20% to 40% more energy than traditional graphite, potentially enabling smaller, lighter, and longer-lasting batteries for electric vehicles, drones, and defense systems. Its Moses Lake, Washington, factory currently produces about 2 gigawatt-hours of material annually, with plans to expand capacity fivefold.
The company recently raised $300 million to support the expansion and already has partnerships with Mercedes and Panasonic. The Pentagon’s investment could also help Sila secure new defense contracts as demand grows for advanced domestic battery technology.