Bucking EV slowdown, Sila raises $300M to expand battery materials factory

Published 21 July 2026 · tech

Battery materials startup Sila announced Tuesday that it raised $300 million to expand its factory in Washington State to produce enough anode material for more

Battery materials startup Sila announced Tuesday that it raised $300 million to expand its factory in Washington State to produce enough anode material for more than 100,000 EVs. Sila’s expansion arrives as electric vehicle demand in the U.S. has softened in the wake of the Trump administration’s efforts to hamstring the propulsion technology. While sales remain depressed in the U.S., down this year relative to 2025 when demand spiked before the sunset of tax credits, EVs are taking a bigger slice of the market elsewhere. According to Benchmark Minerals Intelligence, global sales are up 27% year over year.

Sila previously announced deals to supply its anode material to Mercedes and Panasonic. It also sells to consumer electronics companies such as Whoop as well as drone manufacturers, and satellite companies. Most lithium-ion batteries today using graphite anodes, and Chinese companies control about three-quarters of the supply chain, according to Benchmark Minerals Intelligence. That has spurred automakers outside of China to search for alternatives that aren’t subject to tariffs. Sila’s anode material is one of the few alternatives that’s available in sufficient quantity. In addition to being an alternative to Chinese graphite, Sila’s anode material can store up to 40% more energy than traditional graphite anodes.

It can also charge faster. Sila has been developing the material for the last 15 years. Its founder and CEO, Gene Berdichevsky, previously worked at Tesla, where he was the seventh employee. The startup began production at its Moses Lake, Washington plant in September. The factory is capable of making up to 2 gigawatt-hours of silicon-carbon anode material. The expansion will allow the plant to produce tens of gigawatt-hours per year, enough to power more than 100,000 EVs. While EVs are the biggest user of lithium-ion batteries, energy storage systems have been taking a bigger piece of the market as demand for electricity grows.

AI data centers have become a major buyers of grid-scale batteries. The packs can serve as backup power sources, help trim peak demand charges, and allow for around-the-clock use of solar and wind power. 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. Sila previously raised about $1.3 billion across previous rounds, according to PitchBook.