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

Battery materials startup Group14 announced Wednesday it has closed a $463 million funding round to expand its manufacturing footprint, a sign that investors remain confident in the future of electric vehicles.

The startup manufactures silicon anode materials, which significantly boost the storage capacity of lithium-ion batteries. Group14 currently operates three factories, two in the U.S. and one in South Korea.

Despite headlines about softening demand growth for electric vehicles, the global market for lithium-ion batteries remains strong. Over the next decade, its expected to grow more than 15% annually, quintupling in size, according to Precedence Research. And automakers and investors are still in pursuit of companies working on technology that will make EVs more efficient and affordable.

The round was led by battery manufacturer SK with participation from ATL, Lightrock, Microsoft, Porsche, and OMERS. Alongside the round, Group14 also announced it had “acquired full ownership” of a joint venture with SK in South Korea, which includes its BAM 3 factory. SK had owned 75% of the JV. When asked whether the value of the JV transaction was included in the Series D total, Group14 spokesperson Kristen Caron said the company was “not disclosing any additional details about the round.”

Silicon has long been targeted as a potential replacement for graphite, today’s go-to anode material, because it can hold up to 10 times more electrons. But with every charge and discharge, pure silicon anodes have a tendency to crumble as the material expands and contracts, something that graphite is more resistant to.

Startups like Group14 and its competitor Sila have accommodated silicon’s propensity to swell by creating structures that keep silicon in place without sacrificing the anode’s overall integrity. Group14’s material is a scaffold with internal voids that hold the silicon, giving it room to expand. 

The material itself can be blended with graphite or replace it entirely. Many companies still opt for the latter because of graphite’s inherent stability. But the more silicon used, the more energy a single cell can store. Group14 says its material can improve energy density by up to 50% and cut fast-charging times below 10 minutes.