Sila Nano Raises $ 590 Million to Make Materials for Better Electric Car Batteries

Sila Nanotechnologies, a Silicon Valley battery materials company co-founded and led by a former Tesla engineer, has raised an additional $ 590 million for the production of its silicon-based anodes that improve battery efficiency for vehicles electrical and consumer electronics.

The F-Series cycle has been led by Coatue Management and brings the valuation of Sila Nano to around $ 3.3 billion, the Alameda, Calif., Based company said. It also brings the total funding to date for the Daimler-backed tech company to around $ 930 million. Sila Nano, who also works with BMW and Japan’s Amperex Technology Limited, or ATL, plans to use the new funds to set up a North American plant that will open in 2024 and eventually produce anode materials. for 100 GWh of batteries per year, enough for 1 million electric vehicles.

The cycle is “all we need to start and produce from this factory, but it’s not all we need for this whole factory,” co-founder and CEO Gene Berdichevsky told Forbes. “To reach a million electric vehicles, we’ll need more capital, but it’s enough to get production out of this facility.”

The news comes as the Biden administration is prioritize much larger U.S. production of electric vehicles and batteries as part of a broad effort to reduce greenhouse gas emissions. Along with new federal plans to replace gasoline and diesel vehicles with electric vehicles, the United States is also preparing a push to install at least 500,000 electric vehicle charging stations across the country.

Sila Nano says its materials allow battery manufacturers to produce batteries that are lighter, safer and more energy dense, which can lower the cost of electric vehicles. Its silicon-based anode, designed to replace graphite used in lithium-ion batteries, offers a 20% improvement in efficiency over current cells and could potentially increase efficiency by 50%, according to the company.

Ahead of the production of electric cars, consumer electronics, including fitness trackers, wireless headphones and smartwatches using Sila Nano technology, will arrive this year, Berdichevsky said. He declined to identify the companies that will manufacture and sell these products.

A site for the plant has not yet been identified, although it is likely to be in the United States, he said. Silo Nano does not currently consider listing actions through a PSPC agreement, although it may request a low interest federal ATVM loan this could provide additional funds for a factory, Berdichevsky said.

“We believe Sila Nano has created a new, revolutionary battery technology that has a clear path for evolution and widespread adoption,” said Jaimin Rangwalla, Senior Managing Director of Coatue Management.

Existing investors in Sila Nano, including 8VC, Bessemer Venture Partners, the Canada Pension Plan Investment Board and Sutter Hill Ventures, have also invested in the F cycle.