Group14 creates $463 million EVS silicon anodes from SK, Porsche and others

Battery Materials startup group 14 announced Wednesday it had closed a $463 million funding round to expand its manufacturing footprint.

Startups manufacture silicon anode materials, which significantly improves the storage capacity of lithium-ion batteries. Group14 currently operates three factories. Two are in the US and the other is Korea.

Despite headlines about mitigating growth in demand for electric vehicles, the global market for lithium-ion batteries remains strong. Priority surveys show that it is expected to increase by more than 15% per year over the next decade, with sizes available. Automakers and investors are also pursuing companies that are committed to technology that makes EVs more efficient and affordable.

The round was led by battery maker SK with the participation of ATL, Lightrock, Microsoft, Porsche and Omers. In addition to the round, Group14 also announced that it has “acquired full ownership” of its joint venture with South Korea’s SK, including BAM 3 Factory. SK owned 75% of the JV. When asked whether the value of the JV transaction was included in the Series D total, Group14 spokesman Kristen Caron said the company “has not disclosed any additional details regarding the round.”

Silicon has long been targeted as a potential alternative to graphite, today’s anode zord material, because it can hold up to 10 times more electrons. However, with all charging and ejection, pure silicon anodes tend to crumble as the material expands and contracts. This is what graphite is more resistant to.

Startups like Group14 and its competitor Sila are responding to silicon trends by creating structures that keep the silicon in place without sacrificing the overall integrity of the silicon. Group14’s materials are scaffolds with internal voids that hold silicon, allowing room to expand.

The material itself can be blended with graphite or replaced entirely. Many companies still choose the latter because of the inherent stability of graphite. However, the more silicon is used, the more energy a single cell can store. According to Group14, the material can improve energy density by up to 50% and reduce fast charging times of less than 10 minutes.

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