US battery technology company Sila has secured a conditional loan commitment of up to $1.4 billion from the US government to expand domestic production of its silicon-carbon battery material. The financing will support expansion of Sila’s Moses Lake facility in Washington and the construction of a lithium-ion battery cell manufacturing operation.
The funding comes as US automotive and defense companies seek battery materials produced outside China. Most lithium-ion batteries currently use graphite anodes, while China controls much of the global graphite anode supply chain.
Sila produces Titan Silicon, a silicon-carbon anode material designed to replace some or all of the graphite used in conventional lithium-ion batteries. Silicon-based anodes can increase battery energy density, potentially enabling longer operating times or smaller and lighter battery packs for electric vehicles, drones, electronics, and defense equipment.
Funding Will Support Moses Lake Expansion
Sila announced the conditional $1.4 billion loan commitment on August 7. The financing is being provided through the US government’s Office of Strategic Capital and remains subject to the completion of required conditions.
The company opened its automotive-scale Moses Lake manufacturing plant in September 2025. Initial operations support between 2 GWh and 5 GWh of annual battery capacity, while the site was designed to expand considerably as demand increases.
Sila raised another $300 million from private investors in July to help finance expansion at the facility. The company has raised more than $1.5 billion from private investors to date, according to PitchBook.
Sila already has supply agreements with Mercedes-Benz and Panasonic. Panasonic plans to use Titan Silicon produced at Moses Lake in its next-generation lithium-ion batteries.
US Backs Other Critical Material Projects
The Sila financing was announced alongside several other government investments intended to expand domestic supplies of materials used in defense and advanced technology.
Sunrise Energy Metals received a conditional $400 million loan commitment to expand scandium mining operations. Scandium is used in lightweight alloys for aerospace and other applications.
Minnesota-based Niron Magnetics received a conditional $150 million loan commitment to increase production of rare earth-free magnets. The magnets are intended for products including electric motors, smartphones, and missile systems.
Strategic Bauxite also received an $85 million government equity investment. The company mines bauxite, the primary mineral used to produce aluminum.
For Sila, the government financing adds to private funding already committed to increasing US production of silicon-based anode materials. The company’s Moses Lake site was designed for substantial expansion, with Sila previously stating that it could eventually support as much as 250 GWh of battery capacity.
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