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