Next-gen battery materials manufacturer Group14 Technologies today announced $463 million of new funding. The Woodinville, Wash.-based company has raised more than $1 billion from investors.
The new cash comes as Group14 is forging a path forward despite significant federal cuts for clean tech support, ongoing tariff uncertainties, and projections for a slowing electric vehicle market. The company last month laid off an undisclosed number of workers and is delaying by more than a year the start of production at its flagship battery materials plant in Eastern Washington’s Moses Lake.
“This raise is powerful validation that, despite a tough macro environment, investors are doubling down on Group14’s role in shaping the future of energy storage,” said Group14 CEO Rick Luebbe in a statement. “Their continued support underscores their conviction in our technology and recognition of the global demand for silicon batteries we’re already seeing.”
The company also disclosed that it is buying out SK Inc.’s 75% share of a jointly-owned battery materials factory in South Korea, making Group14 the sole owner. SK Inc., an investment holding company, also led the Series D round.
The deal puts Group14 in “full control of its primary manufacturing base in Asia, strategically located near the world’s largest battery manufacturers,” the company said in a statement.
Group14 has developed a silicon anode technology used in lithium ion batteries that holds more power and requires less time for recharging than traditional graphite anode batteries. The product, called SCC55, is suitable for use in EVs, consumer electronics and utility-scale batteries that can help meet power demand for data centers.
The company previously raised $649 million from investors, bringing its new total to $1.11 billion. Group14 broke ground on its Battery Active Materials-2, or BAM-2, facility in Moses Lake in April 2023 and aimed to start manufacturing by late 2024. Its new start date is early 2026.
Group14 reports that 150 customers have signed up for its product. That includes the automaker Porsche, which has invested in the company and plans to use the silicon technology in some of its electric vehicles.
It was smoother sailing for Group14 and its competitors under the Biden administration, which prioritized the transition to clean power and worked to rebuild U.S. battery production, which is currently dominated by China. The Trump administration has reversed course, emphasizing fossil fuel use and cutting tax breaks for batteries, wind, solar and EVs.
In May, OneD Battery Sciences reportedly pulled the plug on its pilot plant in Moses Lake, while Sila is commissioning its battery materials facility in the same town and plans to start production this year.
Group14 received a $100 million grant from the U.S. Department of Energy in 2022 as part of the Bipartisan Infrastructure Act to help construct the BAM2 facility. In September it was awarded a $200 million DOE grant to build a Moses Lake plant that would produce silane gas, an essential ingredient for manufacturing silicon battery materials.
“With over 90% of anode-grade graphite coming from China, the vulnerability is clear,” Luebbe said. “Our silicon battery material gives manufacturers a high-performance alternative that helps derisk the supply chain. Every tonne of SCC55 displaces five tonnes of Chinese graphite with a homegrown solution.”
RELATED:
- Next-gen battery materials manufacturer Group14 lays off workers in Washington state
- Tariffs slow Group14’s battery production plans — but data center demand opens potential new growth
Discussion about this post