Sila has overcome the electric vehicle slowdown, raising $300 million to expand a battery materials factory

Battery materials sell start-up Announce On Tuesday it raised $300 million to expand its plant in Washington state to produce enough anode material for more than 100,000 electric cars.

theyThe company’s expansion comes as demand for electric vehicles declines in the United States following the Trump administration’s efforts to block propulsion technology. While sales Stay depressed In the United States, this year is down compared to 2025 when demand rose before tax breaks expire, and electric vehicles take a larger slice of the market elsewhere. According to According to Benchmark Minerals Intelligence, global sales rose 27% year-on-year.

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

Most lithium-ion batteries today use graphite anodes, and Chinese companies control about three-quarters of the supply chain. According to To standard mineral intelligence. This has prompted automakers outside China to look for alternatives that are not subject to tariffs.

Sila’s anode material is one of the few alternatives 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. Sela has been developing the material over the past 15 years. Its founder and CEO, Gene Berdichevsky, previously worked at Tesla, where he was the seventh employee.

The startup has begun production at its factory in Moses Lake, Washington In September. The plant is capable of producing up to 2 gigawatt-hours of silicon-carbon anode material. The expansion will allow the station to produce tens of gigawatt-hours annually, which is enough to power more than 100,000 electric cars.

While electric vehicles are the largest user of lithium-ion batteries, energy storage systems are taking a larger share of the market as demand for electricity grows. AI data centers have become major buyers of grid-scale batteries. These packages can serve as backup power sources, help reduce demand charges at peak times, and allow solar and wind energy to be used around the clock.

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 had previously raised about $1.3 billion via previous rounds, according to PitchBook.