Group14 secured $463 million in a funding round led by SK, with participation from ATL, Lightrock, Microsoft, Porsche, and OMERS, to expand manufacturing of silicon anode materials. Group14 operates three factories, two in the U.S. and one in South Korea, and acquired full ownership of a joint venture with SK that includes the BAM 3 factory. Silicon can hold up to ten times more electrons than graphite but tends to expand and crumble across charge cycles. Group14’s scaffold material contains internal voids to manage silicon expansion and can be blended with graphite to improve anode durability and capacity.
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.
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.
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."
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