Bucking EV slowdown, Sila raises $300M to expand battery materials factory
Battery startup Sila has raised $300 million to expand its Washington State factory, aiming to produce silicon-carbon anode materials for over 100,000 electric vehicles. Despite a slowdown in U.S. EV demand, the company is positioning itself as a domestic alternative to Chinese-dominated graphite supply chains.
Why it matters
Sila's expansion highlights the ongoing strategic effort to localize the EV supply chain and reduce dependence on foreign materials amid geopolitical trade tensions.
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.
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