Sila Nanotechnologies, a battery materials firm located in Silicon Valley, has dedicated several years to the creation of a technology intended to increase energy density within batteries while simultaneously reducing production expenses – a key objective that has resulted in collaborative agreements with Amperex Technology Limited, as well as automotive manufacturers BMW and Daimler.

Currently, Sila Nano, having recently secured a substantial new investment that has elevated its company valuation to $3.3 billion, is preparing to make its technology widely available.

The company, established almost ten years ago, announced on Tuesday that it has obtained $590 million in a Series F funding round. This round was spearheaded by Coatue and included considerable investment from funds and accounts managed by T. Rowe Price Associates, Inc. Previous investors, including 8VC, Bessemer Venture Partners, Canada Pension Plan Investment Board, and Sutter Hill Ventures, also contributed to this funding.

Sila Nano intends to utilize these funds to expand its workforce by an additional 100 employees this year and to initiate the construction of a manufacturing facility in North America. This facility will be capable of producing 100 gigawatt-hours of silicon-based anode material, a crucial component in batteries used for both smartphones and the automotive sector. Although the specific location of the factory remains undisclosed, the company has outlined a schedule. Sila Nano anticipates commencing production at the facility in 2024.

“Developing a novel battery chemistry required eight years and 35,000 attempts, but that was only the initial phase,” stated Sila Nano CEO and co-founder Gene Berdichevsky. “To have a significant effect in practical applications, any new technology must be scalable, which necessitates substantial financial investment. Our experience establishing production lines in Alameda has demonstrated that investing in our next plant now will ensure we remain on schedule to power vehicles and a vast number of consumer electronics by 2025.”

The tech

A lithium-ion battery is composed of two electrodes: an anode, which carries a negative charge, and a cathode, which carries a positive charge. An electrolyte is generally positioned between these electrodes, functioning as a medium to transport ions during both the charging and discharging processes.

Sila Nano has created an anode constructed from silicon, intended to substitute graphite within lithium-ion batteries. A key aspect of this development is the material’s compatibility with existing battery production methods and machinery, eliminating the need for alterations to current manufacturing processes.

Sila Nano’s focus on a silicon anode stems from its superior capacity to store lithium ions. Employing a material capable of accommodating a greater quantity of lithium ions has the potential to enhance energy density – essentially, the amount of energy a battery can hold relative to its size. The resulting benefit would be a more cost-effective battery offering increased energy storage within the same physical dimensions.

The opportunity

This represents a significant advancement for vehicle manufacturers focused on expanding their offerings of electric cars. Almost all major automotive companies worldwide have either revealed strategies for, or are currently manufacturing, a new generation of fully electric and plug-in hybrid vehicles, encompassing brands such as Ford, General Motors, Daimler, BMW, Hyundai, and Kia. Tesla is consistently increasing the output of its Model 3 and Model Y vehicles, while emerging companies like Rivian are preparing to launch their own electric vehicle models.

Essentially, the need for batteries is rapidly increasing, and car manufacturers are actively seeking cutting-edge technologies that will provide them with a distinct advantage in the marketplace.

Global battery production stood at approximately 20 Gigawatt-hours annually in 2010. Sila Nano projects this figure to rise to 2,000 GWh per year by 2030 and further increase to 30,000 GWh per year by 2050.

Sila Nano initiated the construction of its initial production facilities for battery materials in 2018. This initial production line has the capacity to generate materials sufficient for 50 megawatts worth of lithium-ion batteries.