group14 lands $463m from sk, porsche, and others to make silicon anodes for evs

Group14 Secures $463 Million to Scale Battery Material Production

Group14, a company specializing in advanced battery materials, revealed on Wednesday the completion of a $463 million funding round. This investment will be utilized to broaden the company’s manufacturing capabilities, demonstrating continued investor confidence in the electric vehicle (EV) sector.

Silicon Anode Technology

The company focuses on the production of silicon anode materials. These materials notably enhance the energy storage capacity of lithium-ion batteries. Currently, Group14 operates a network of three manufacturing facilities, situated in both the United States and South Korea.

Strong Battery Market Outlook

Despite recent reports of a potential slowdown in EV demand growth, the global market for lithium-ion batteries remains robust. Industry forecasts, such as those from Precedence Research, predict an annual growth rate exceeding 15% over the next decade, resulting in a fivefold increase in market size.

Consequently, both automotive manufacturers and investors are actively seeking companies developing technologies aimed at improving EV efficiency and affordability.

Investment Details and Joint Venture Acquisition

This funding round was spearheaded by battery manufacturer SK, with additional participation from ATL, Lightrock, Microsoft, Porsche, and OMERS. Alongside the funding announcement, Group14 also disclosed the complete acquisition of a joint venture with SK in South Korea, encompassing its BAM 3 factory.

Previously, SK held a 75% ownership stake in the joint venture. When questioned about whether the transaction value was included in the Series D total, a Group14 spokesperson, Kristen Caron, indicated that the company would not be releasing further details regarding the round.

The Potential of Silicon Anodes

For a long time, silicon has been considered a viable alternative to graphite, the currently favored anode material. This is due to silicon’s capacity to store up to ten times more electrons. However, pure silicon anodes tend to degrade with each charge and discharge cycle.

This is because the material expands and contracts, a phenomenon graphite is more resistant to.

Addressing Silicon’s Challenges

Companies like Group14 and Sila have addressed silicon’s expansion issues by developing structures that maintain its integrity. Group14’s material utilizes a scaffold design with internal voids, providing space for silicon to expand without compromising the anode’s structural stability.

Blending and Performance Improvements

The material can be integrated with graphite or used as a complete replacement. While many companies still prefer graphite for its stability, increasing the proportion of silicon enhances the energy storage capacity of each cell.

Group14 claims its material can boost energy density by as much as 50% and reduce fast-charging times to under 10 minutes.

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