Sila Batteries: Founder Gene Berdichevsky on Scaling Battery Chemistry

Sila Nano: Scaling Battery Chemistry for an Electric Future

Prior to establishing Sila Nano as co-founder and CEO, Gene Berdichevsky held the position of seventh employee at Tesla Motors. As a principal engineer focused on the Roadster battery, Berdichevsky was instrumental in pioneering the integration of a lithium-ion battery pack into a conventional combustion engine vehicle. This innovation resulted in the Roadster being recognized as the first highway-legal, serially produced all-electric car capable of exceeding 200 miles on a single charge.

The Founding of Sila and its Core Mission

Founded in 2011, Sila Nano’s primary objective extends beyond merely developing advanced battery chemistry; it encompasses the ability to effectively scale its production. The company has successfully engineered a method to substitute the graphite typically found in a lithium-ion cell’s anode with silicon. Berdichevsky asserts that this substitution leads to a more compact and cost-effective battery cell.

Sila’s initial commercial offering, integrated into the latest Whoop fitness tracker wearable in September, demonstrates both the viability and scalability of the company’s innovative approach. This launch also coincides with Sila’s tenth anniversary. The subsequent phase involves a 100-fold increase in production capacity to facilitate the implementation of this chemistry in automobiles.

Strategic Partnerships and Future Outlook

The company has already established joint battery ventures with both BMW and Daimler, with a stated goal of supplying battery chemistry for electric vehicles on a large scale by 2025. Given the commitment of nearly every major automotive manufacturer to introduce new EV lineups, ensuring a sustainable and affordable battery supply is paramount.

As a pioneering force in battery technology, Berdichevsky adopts a long-term perspective, focusing on the advancements required over the coming decades rather than solely on immediate gains. He shares his strategic vision, insights into fundraising, and perspectives on the evolving battery industry.

Long-Term Vision and Scaling Challenges

What is Sila’s long-term vision?

Sila aims to become a global leader in energy storage, mirroring Intel’s impact on the personal computing industry. Intel focused on producing the critical components that drove the adoption of personal computers, and as microprocessors improved, so did computers and their overall impact.

The company’s vision centers on refining and scaling its anode technology. While exploring other potential technologies, the immediate focus remains on achieving substantial production scale for this core component.

Funding and Industrialization

Do you have the funds you need to scale?

Current funding supports the initial phase of expansion, but not the complete scaling process. The latest funding round provides a down payment for a larger manufacturing facility. Additional funding would accelerate the scaling timeline.

How do you intend to scale to a larger battery pack?

Sila prioritizes scaling and industrializing scientific breakthroughs to enable a sustainable future. Achieving scientific success is only half the battle; the other half lies in implementing it in a scalable manner.

Early on, Sila mandated the use of globally available commodity inputs for its scientists and engineers, ensuring sufficient materials for mass production. Furthermore, the company stipulated the use of “bulk manufacturing” techniques, such as volumetric reactors, over slower and more expensive planar reactors.

A key aspect of Sila’s scalability is the seamless integration of its technology into existing battery factories, allowing manufacturers to enhance battery performance without significant capital expenditure.

Seamless Integration and Competitive Advantages

Why would a company be OK with just dropping your tech into existing battery packs?

By adopting Sila’s technology, a 50-gigawatt-hour factory can effectively become a 60-gigawatt-hour facility without any additional investment. Sila enhances the utilization of existing assets, making it an attractive proposition for battery manufacturers.

Sila’s first product delivers a 20% increase in energy density without compromising cycle life, safety, or recharge time. This product has undergone nearly two years of qualification and integration with Whoop’s production process, adhering to the rigorous standards of the battery industry.

The alternative – a new technology requiring substantial factory modifications – presents a greater risk for battery companies, necessitating the construction of entirely new facilities, which is less scalable.

Material Sourcing and Environmental Impact

Is silicon easier to come by than graphite?

Yes, silicon is one of the most abundant elements globally, and less of it is required. Minimizing environmental impacts is crucial as the battery industry matures. Silicon offers a reduced environmental footprint compared to graphite, which relies on mining processes. Silicon production utilizes sand and energy within a factory setting, allowing for better environmental management.

So this is kind of opposite from what I think BASF’s strategy is, which is to focus on the cathode, right?

That’s correct. However, the industry requires a multifaceted approach. Sila is not currently displacing graphite manufacturers; increased production of all battery components is necessary. Over time, by 2050, newer chemistries are expected to dominate the market, offering improved performance, lower costs, and extended lifespan.

Industry Evolution and Tesla’s Influence

How do you think the industry at large has changed since you’ve been involved, and what do you think has driven that change?

The fundamental vision has remained consistent over the past decade. However, global attention has significantly increased, particularly following Tesla’s stock surge in 2020. This surge signaled to investors the inevitability of the EV transition.

Automakers now prioritize EVs, initiating the development of new platforms five years in advance. This shift has driven substantial investment in the EV sector.

Speaking of Tesla, would you want to be their supplier one day?

Sila is open to supplying any manufacturer committed to producing superior electric vehicles. Existing partnerships include BMW and Daimler, with ongoing discussions with other companies. The goal is to serve the entire industry, if possible.

Tesla’s Battery Strategy and Vertical Integration

You’ve worked at Tesla so what’s your opinion on their battery strategy? Do you think that there’s ways to improve on it?

Sila’s technology will further enhance Tesla’s capabilities. The broader industry trend is towards vertical integration, with companies like Tesla and Toyota building their own battery production facilities. However, battery manufacturers like LG and Panasonic will remain essential, but demand will likely exceed their capacity.

Vertical integration is a sound strategy. In an ideal scenario, a car company would prioritize batteries, software, and the overall vehicle design. The battery and software are the core components, with the design serving as the user interface.

Addressing Supply Chain Concerns and Future Predictions

When you look at all of the promised but yet to be delivered EVs that are coming to market, does that concern you at all? Do you think we’re prepared to supply the batteries and the parts needed in a sustainable way?

Shortages are inevitable, but manageable. The solar industry experienced similar challenges during its scaling phase, with temporary price fluctuations due to input shortages. However, these issues were ultimately resolved.

Scaling from 1% to 10% production is exceptionally challenging, making capital investment prediction difficult. However, scaling from 10% to 20% is more predictable. Shortages are expected in the near term, but will become less significant as the industry matures and electric vehicles become the dominant form of transportation.

Sila Nano’s Trajectory and Long-Term Outlook

Where do you expect Sila to be a year from now?

With Whoop as its initial customer, Sila anticipates securing additional clients and shipping millions of devices. The primary focus will remain on scaling production to meet growing demand. Current capacity supports a limited number of consumer devices, but the goal is to reach a billion phones and a million cars. The next year will be dedicated to expanding manufacturing capabilities and developing the next generation of products.

Where do you see the future of the industry?

The transition will be a lengthy process. The 20th century was defined by combustion science and fossil fuels, while the 21st century will be shaped by energy storage and renewable energy. Sila has completed its first decade and is now focused on scaling its operations. Underestimating the scale of this transformation is a common mistake. Technology is important, but scaling is paramount to achieving a true energy transformation.