Battery materials startup Sila has raised $300 million to expand its factory in Washington State, aiming to produce enough anode material for over 100,000 electric vehicles (EVs). The move comes as U.S. EV demand softens post-Trump administration measures.

Despite a dip in sales in the U.S., global EV market growth remains robust, up by 27% year on year according to Benchmark Minerals Intelligence. While Chinese companies dominate graphite anode supply chains, Sila’s alternative material is poised as a game-changer—storing up to 40% more energy and charging faster than traditional graphite.

The startup's expansion will significantly increase production capacity at its Moses Lake plant from 2 gigawatt-hours to tens of gigawatt-hours annually. This growth isn't just about EVs; as AI data centers drive the energy storage market, grid-scale batteries are becoming increasingly important for around-the-clock renewable power use.

Sila's funding round was led by Atreides Management and Sutter Hill Ventures, with participation from 8VC, Bessemer Venture Partners, Matrix Partners, and T. Rowe Price Associates Inc., bringing the cumulative investment to over $1.3 billion since its inception in 2007.