Sila’s factory strategic location is no accident. That’s because Washington State provides an unbeatable trifecta of benefits— inexpensive hydropower, plenty of space, and close to suppliers of key raw materials. These factors create the perfect conditions for silicon anode production. They offer longer-term innovations as they can increase the energy density of lithium-ion batteries by up to 50%.
Sila’s CEO, Gene Berdichevsky, expressed confidence in the company’s mission. He emphasized the importance of domestic manufacturing in the United States, stating, “As a country, if you don’t make stuff, where’s your pride going to come from?”
Sila has already signed supply agreements for its anode material. The biggest players in the automotive industry, like Panasonic and Mercedes, are now fully committed. The company raised $375 million last year to fund this ambitious undertaking. What is the factory’s role in developing a robust supply chain for EV batteries in North America? First and foremost, it represents a tremendous accomplishment in this crucial sector of our economy.
You now have that great performance, with a high speed charge and made in America supply, all at a lower cost,” Berdichevsky added. He underscored Sila’s technology competitive advantage.
This new factory isn’t just a victory for Sila themselves, but an indication of the continuing shift towards electric vehicles overall. Berdichevsky pointed out the rare and remarkable consensus among Western automakers on the direction of EVs. “There’s not a CEO of a Western automaker that doesn’t believe that within a decade, or maybe 15 years at the limit, they’re going to be selling almost all electric vehicles.”
The meaning of Sila’s silicon anodes goes beyond performance improvements. This would allow automakers to either use less of other costly materials going into battery production like nickel or find substitutes altogether. As a result, Sila’s batteries will be substantially lower cost than those with conventional graphite anodes from Western suppliers. We always hoped this would happen in a matter of years, not decades.
Looking ahead, Sila is poised for expansion. Demand has been so strong that Berdichevsky said if the trend continues more sites would be opened. “If you play it out 10 years from now, you probably have 10 million EVs in the U.S., so we’re going to need multiple sites,” he explained.
With future expansions, the factory’s production capacity would be able to meet demand for as many as 2.5 million vehicles annually. Sila’s innovative approach to battery materials could help determine what electric vehicles will look like in the future.
“The cost structure of this technology is predicated on low-cost energy, one of the big inputs, and then some key precursors, and we have that in Washington,” Berdichevsky noted regarding the factory’s operational advantages.
