Amid battery startup failures, Sila secures $375 million in new funding

Sila, formerly known as Sila Nanotechnologies, has secured $375 million in a Series G funding round to support the completion of its U.S. factory in Moses Lake, Washington. The funds will be used to scale up production of its Titan Silicon anode material, aimed at customers like Mercedes-Benz and Panasonic by the end of 2025.

Led by existing investors Sutter Hill Ventures, with participation from Bessemer Venture Partners, Coatue, Perry Creek Capital, and others, this all-equity round comes at a challenging time for battery startups. Many in the electric vehicle (EV) battery sector have faced difficulties bringing products to market amid financial strains and production delays. For instance, Ionic Materials closed down earlier this year, and Umicore reduced its EV sales forecasts. Even Freyr Battery, a startup that went public in 2021, has struggled to scale production of its next-generation batteries.

Sila’s CEO and founder, Gene Berdichevsky, who was an early employee at Tesla, emphasized the importance of not only developing advanced battery technology but also ensuring it can be scaled effectively. He views reaching the milestone of getting cars on the road as crucial, and believes the new funding will support Sila in achieving this goal.

The sizable investment in Sila reflects confidence in its approach to battery chemistry and its capability to advance to large-scale production. Despite the challenges in the market, Sila is positioning itself to meet the growing demand for high-performance batteries in the EV industry.