Battery materials startup Sila announced Tuesday that it raised $300 million to expand its factory in Washington state to produce enough anode material for more than 100,000 electric vehicles.

Sila’s expansion comes as demand for electric vehicles in the United States has weakened in the wake of the Trump administration’s efforts to cripple propulsion technology. While sales remain depressed in the United States (down this year compared to 2025, when demand soared before tax credits ended), electric vehicles are taking a larger share of the market elsewhere. According to Benchmark Minerals Intelligence, global sales increased 27% year over year.

Sila previously announced deals to supply its anode material to Mercedes and Panasonic. It also sells to consumer electronics companies like Whoop and to drone makers and satellite companies.

Most lithium-ion batteries today use graphite anodes, and Chinese companies control about three-quarters of the supply chain, according to Benchmark Minerals Intelligence. That has spurred automakers outside China to look for alternatives that aren’t subject to tariffs.

Sila anode material is one of the few alternatives that is available in sufficient quantity.

In addition to being an alternative to Chinese graphite, Sila’s anode material can store up to 40% more energy than traditional graphite anodes. It can also charge faster. Sila has been developing the material for the last 15 years. Its founder and CEO, Gene Berdichevsky, previously worked at Tesla, where he was the seventh employee.

The startup began production at its Moses Lake, Washington, plant last September. The factory is capable of producing up to 2 gigawatt-hours of silicon-carbon anode material. The expansion will allow the plant to produce dozens of gigawatt-hours per year, enough to power more than 100,000 electric vehicles.

While electric vehicles are the largest user of lithium-ion batteries, energy storage systems have been taking a larger share of the market as demand for electricity grows. AI data centers have become major buyers of grid-scale batteries. The packs can serve as backup power sources, help reduce peak demand charges, and enable 24-hour use of solar and wind power.

The new round was led by Atreides Management and Sutter Hill Ventures with participation from 8VC, Bessemer Venture Partners, Matrix Partners and funds and accounts advised by T. Rowe Price Associates Inc. Sila previously raised about $1.3 billion in previous rounds, according to PitchBook.