Pentagon backs Sila with $1.4B loan to secure domestic battery supply

Sila currently manufactures its proprietary silicon-carbon material at a facility in Moses Lake, Washington, which launched operations this past September. While the plant maintains a current output of 2 gigawatt-hours annually, the new federal funding will support a fivefold expansion, eventually supplying enough material for over 100,000 electric vehicles. The technology offers a 20% to 40% increase in electricity storage compared to traditional graphite, a critical advantage for drones and defense hardware.

Beyond current commercial partnerships with Mercedes and Panasonic, the Pentagon deal positions Sila to secure defense contracts amid rising global demand for resilient supply chains. The department’s broader strategy includes simultaneous investments in other critical sectors: Sunrise Energy Metals received $400 million for scandium mining, Niron Magnetics secured $150 million for rare earth-free magnet production, and Strategic Bauxite obtained $85 million to bolster aluminum-related mineral resources.