Sila raises $300M to expand silicon-carbon anode production for EV batteries

Sila raised $300 million to expand its Moses Lake, Washington factory. The goal is to produce enough silicon-carbon anode material to power more than 100,000 EVs.

The plant began production in September and is currently capable of making up to 2 gigawatt-hours of silicon-carbon anode material. The expansion is expected to move output into the tens of gigawatt-hours per year.

Sila’s material is positioned as an alternative to traditional graphite anodes used in most lithium-ion batteries. The company says its anode material can store up to 40% more energy than traditional graphite anodes and can also charge faster.

The supply-chain angle is central: Chinese companies control about three-quarters of the graphite anode supply chain, according to Benchmark Minerals Intelligence as cited by TechCrunch. That pressure has pushed automakers outside China to look for alternatives that are not subject to tariffs.

The raise comes as U.S. EV demand has softened relative to 2025, when demand spiked before the sunset of tax credits. TechCrunch notes that EVs are still gaining share elsewhere.

Benchmark Minerals Intelligence reported global EV sales up 27% year over year, according to the article. That split market backdrop makes factory scale and supply commitments especially important for battery-materials startups.

Sila previously announced deals to supply anode material to Mercedes and Panasonic. It also sells to consumer electronics companies such as Whoop, as well as drone manufacturers and satellite companies.

The new round was led by Atreides Management and Sutter Hill Ventures, with participation from 8VC, Bessemer Venture Partners, Matrix Partners, and funds and accounts advised by T. Rowe Price Associates Inc. TechCrunch also reports that Sila previously raised about $1.3 billion across earlier rounds, according to PitchBook.

EVs remain the biggest users of lithium-ion batteries, but energy storage systems are taking a larger piece of the market as electricity demand grows. AI data centers have become major buyers of grid-scale batteries.

Those battery packs can serve as backup power, reduce peak demand charges, and support around-the-clock use of solar and wind power. For readers tracking climate tech, the takeaway is that battery-materials capacity is tied not only to cars, but also to the broader power system.