Group14 raises $463M to expand silicon anode production
Battery materials startup Group14 Technologies announced Wednesday that it has raised $463 million in new funding to scale up its manufacturing operations, underscoring investor confidence in the long-term future of electric vehicles despite recent headlines about slowing demand growth.
The company specializes in silicon anode materials, a next-generation alternative to graphite that can dramatically increase the energy storage capacity of lithium-ion batteries. Group14 currently operates three factories—two in the U.S. and one in South Korea—and says the new capital will allow it to further expand production capacity to meet rising demand from automakers and battery suppliers.
The funding round was led by South Korea–based battery manufacturer SK with participation from ATL, Lightrock, Microsoft, Porsche, and OMERS. Alongside the raise, Group14 also revealed that it had acquired full ownership of its South Korean joint venture with SK, which includes its BAM 3 factory. Previously, SK held a 75% stake in the venture. A company spokesperson declined to say whether the acquisition was factored into the Series D total.
Why Silicon Matters for Batteries
Graphite has long been the industry standard for anodes, but silicon has emerged as a promising replacement. Silicon can hold up to 10 times more electrons than graphite, theoretically unlocking much higher energy densities. The challenge is that silicon expands and contracts during charge cycles, often causing pure silicon anodes to crack and degrade.
Group14, along with rivals like Sila, has developed engineering workarounds to address the issue. Group14’s approach involves a scaffold-like structure with internal voids that hold silicon particles, allowing them to expand without damaging the anode’s integrity. The material can be mixed with graphite for stability or replace it entirely, depending on the application.
The startup claims its technology can boost battery energy density by up to 50% while also enabling fast-charging times under 10 minutes—two performance metrics that could help make electric vehicles more efficient, affordable, and convenient for drivers.
A Growing Market Despite Uncertainty
Even as automakers scale back some EV production plans in response to near-term market pressures, the global lithium-ion battery market remains robust. According to Precedence Research, the market is expected to grow more than 15% annually over the next decade, quintupling in size.
That long-term outlook has kept investors pouring capital into companies developing breakthroughs in battery chemistry. For Group14, the latest funding represents a strong vote of confidence that silicon-based anodes are edging closer to commercial scale—and may soon play a central role in powering the next generation of electric vehicles.
