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Sila lands $1.4B Pentagon loan as militaries demand more batteries

11 h ago

Sila, a U.S.-based battery materials startup, has secured a $1.4 billion loan from the U.S. Department of Defense to expand production of its silicon-carbon anode material, addressing the search intent for news on battery supply chain diversification, defense funding, and next-generation EV battery technology. The loan, announced Friday, aims to reduce reliance on Chinese-dominated graphite supply chains by scaling Sila’s silicon anode production, which offers 20% to 40% higher energy density than traditional graphite anodes—enabling longer-lasting, lighter batteries for defense drones, EVs, and mobility applications. Sila’s Moses Lake, Washington factory, operational since September, currently produces about 2 gigawatt-hours of anode material annually. The company plans a fivefold expansion to support over 100,000 EVs, funded partly by a $300 million private round led by Atreides Management and Sutter Hill Ventures in July. Sila has raised over $1.5 billion from private investors and holds deals with Mercedes and Panasonic. The Pentagon loan could unlock defense contracts amid ongoing geopolitical tensions. Concurrently, the DoD announced three other deals: a $400 million loan to Australia’s Sunrise Energy Metals for scandium mining, a $150 million loan to Minnesota’s Niron Magnetics for rare earth-free magnets, and an $85 million equity investment in Strategic Bauxite for aluminum-containing minerals.