Group14 Technologies, a developer of silicon-carbon composite materials as an alternative for the graphite used in lithium-ion batteries, has been awarded a USD 100 million grant by the US Department of Energy under the Bipartisan Infrastructure Law. 

Group14 will be using the funds to build two 2,000-ton-per-year commercial manufacturing modules in its second US Battery Active Materials factory (BAM-2) in Washington.

Overall, Group14 has two manufacturing facilities; the first, Battery Active Materials factory (BAM-1), is located in Woodinville, Washington and was launched in April 2021. This facility produces 120 tons per year of the company’s silicon-carbon battery technology, SCC55 , and delivers to more than 60 customers representing 90% of worldwide battery production. With growing demand, Group14 raised USD 400 million for its second factory, BAM-2, which carries out modular manufacturing. As such, each module will have an annual production capacity of 2,000 tons per year, equivalent to powering at least 100,000 electric vehicles.

Analyst QuickTake: The funding provided to Group14 is part of the first phase of a total of USD 7 billion in grants to be given by the US Bipartisan Infrastructure Law. This aims to expand domestic manufacturing of EV batteries and electrical grid batteries with a focus on increasing domestic processing of materials and components currently imported from other countries.