Sila has secured a $1.4 billion loan from the U.S. Department of Defense to accelerate production of its silicon-carbon battery material, a move that reflects rising demand for advanced energy storage across mobility and defense sectors.
The investment comes as manufacturers seek battery inputs outside China, where much of the graphite-based anode supply chain is concentrated. Sila's silicon-based approach is designed to deliver 20% to 40% more energy density than conventional graphite anodes, supporting longer-range electric vehicles and lighter, more compact battery systems.
The company produces its material at its facility in Moses Lake, Washington, which began operating in September. At its current scale, the plant can generate about 2 gigawatt-hours of anode material each year. Sila is now planning a fivefold expansion that could support batteries for more than 100,000 EVs annually.
The startup has already attracted major industry interest, including partnerships with Mercedes and Panasonic. It also raised $300 million in July to support its factory buildout, bringing its total private funding to more than $1.5 billion, according to PitchBook.
Alongside Sila's financing, the Department of Defense announced additional support for Sunrise Energy Metals, Niron Magnetics, and Strategic Bauxite, signaling a broader push to strengthen supply chains for critical materials. The next phase of battery innovation may be shaped by faster scaling, more resilient sourcing, and higher-performance energy storage.
