Pentagon grants $1.4 billion loan to Sila for U.S. battery material expansion

The U.S. Department of Defense has committed a $1.4 billion loan to silicon-carbon battery material maker Sila, supporting the expansion of its Moses Lake, Washington facility. The plant, which began operations in September, presently produces roughly 2 GWh of anode material annually and plans to increase capacity fivefold, enough for over 100,000 electric vehicles. The loan comes as U.S. automakers and defense contractors seek alternatives to graphite anodes dominated by Chinese suppliers, with silicon-based anodes offering 20-40% higher energy density.

Sila recently secured a $300 million private-equity round led by Atreides Management and Sutter Hill Ventures and has contracts with Mercedes and Panasonic. The defense loan could also open pathways to contracts with military customers amid ongoing conflicts. The Department of Defense simultaneously announced a $400 million loan for Sunrise Energy Metals, a $150 million loan for Niron Magnetics, and an $85 million equity investment in Strategic Bauxite.