Battery materials startup Group14 announced it secured $463 million in funding to enhance its manufacturing capabilities, indicating strong investor confidence in electric vehicles. The company produces silicon anode materials, significantly increasing lithium-ion battery storage capacity, with factories in the U.S. and South Korea.
Despite concerns about electric vehicle demand, the lithium-ion battery market is robust, projected to grow over 15% annually, quintuple in size over the next decade, as reported by Precedence Research. Automakers and investors are eager to back technologies that improve EV efficiency and affordability.
The investment round, led by SK and joined by ATL, Lightrock, Microsoft, Porsche, and OMERS, also saw Group14 acquiring full ownership of a joint venture with SK in South Korea, including its BAM 3 factory. SK previously held 75% ownership. Group14 did not disclose if the JV transaction’s value was part of the Series D funding.
Silicon, a potential graphite replacement for anodes, holds up to 10 times more electrons but tends to crumble during charging cycles. Group14 and competitor Sila have developed structures to stabilize silicon, with Group14’s material featuring scaffolds with voids for silicon expansion.
This material can be blended with or replace graphite in anodes. While graphite is preferred for its stability, silicon increases energy storage. Group14 claims its material can enhance energy density by 50% and reduce charging times to under 10 minutes.