Sila Nanotechnologies secures $1.4B Pentagon loan for silicon-carbon battery expansion
Original: Sila lands $1.4B Pentagon loan as militaries demand more batteries
Why This Matters
The deal highlights the DoD's push to build domestic, China-independent battery material supply chains for defense and mobility.
The U.S. Department of Defense awarded Sila Nanotechnologies a $1.4 billion loan on August 10, 2026, to scale production of silicon-carbon battery anode material at its Moses Lake, Washington factory, amid growing demand for non-Chinese battery supply chains.
Sila Nanotechnologies has received a $1.4 billion loan from the U.S. Department of Defense to expand its silicon-carbon battery anode manufacturing facility in Moses Lake, Washington. The loan was announced on Friday, August 10, 2026. Sila's factory, which began operating in September 2025, currently produces approximately 2 gigawatt-hours of anode material annually. The planned fivefold expansion would generate enough material for over 100,000 EVs. Silicon-carbon anodes offer 20%–40% greater energy density compared to conventional graphite anodes, making them attractive for defense applications such as drones, as well as EVs. Most graphite anode supply chains are currently dominated by Chinese companies, creating procurement challenges for U.S. buyers. In July 2026, Sila raised $300 million in a round led by Atreides Management and Sutter Hill Ventures to fund the expansion. Total private fundraising to date exceeds $1.5 billion, per PitchBook. Sila has existing supply agreements with Mercedes and Panasonic. Alongside the Sila loan, the DoD also announced a $400 million loan to Sunrise Energy Metals for scandium mining, a $150 million loan to Niron Magnetics for rare earth-free magnets, and an $85 million equity investment in Strategic Bauxite.