Group14 lands $463M from SK, Porsche, and others to make silicon anodes for EVs

Battery supplies startup Group14 introduced Wednesday it has closed a $463 million funding spherical to broaden its manufacturing footprint, an indication that traders stay assured in the way forward for electrical autos.

The startup manufactures silicon anode supplies, which considerably enhance the storage capability of lithium-ion batteries. Group14 presently operates three factories, two within the U.S. and one in South Korea.

Regardless of headlines about softening demand progress for electrical autos, the worldwide marketplace for lithium-ion batteries stays robust. Over the subsequent decade, it’s anticipated to develop greater than 15% yearly, quintupling in dimension, in accordance to Priority Analysis. And automakers and traders are nonetheless in pursuit of corporations engaged on know-how that can make EVs extra environment friendly and reasonably priced.

The spherical was led by battery producer SK with participation from ATL, Lightrock, Microsoft, Porsche, and OMERS. Alongside the spherical, Group14 additionally introduced it had “acquired full possession” of a three way partnership with SK in South Korea, which incorporates its BAM 3 manufacturing unit. SK had owned 75% of the JV. When requested whether or not the worth of the JV transaction was included within the Sequence D whole, Group14 spokesperson Kristen Caron mentioned the corporate was “not disclosing any extra particulars concerning the spherical.”

Silicon has lengthy been focused as a possible alternative for graphite, immediately’s go-to anode materials, as a result of it may well maintain as much as 10 occasions extra electrons. However with each cost and discharge, pure silicon anodes generally tend to crumble as the fabric expands and contracts, one thing that graphite is extra proof against.

Startups like Group14 and its competitor Sila have accommodated silicon’s propensity to swell by creating buildings that preserve silicon in place with out sacrificing the anode’s total integrity. Group14’s materials is a scaffold with inner voids that maintain the silicon, giving it room to broaden. 

The fabric itself may be blended with graphite or exchange it fully. Many corporations nonetheless go for the latter due to graphite’s inherent stability. However the extra silicon used, the extra vitality a single cell can retailer. Group14 says its materials can enhance vitality density by as much as 50% and minimize fast-charging occasions under 10 minutes.

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