Woodinville-based battery technology company Group14 Technologies has signed a major deal with German battery cell company CustomCells.
On July 8, Group14 and CustomCells announced Group14 will produce its silicon battery powder for CustomCells. The companies said the deal should exceed $300 million for Group14 to supply CustomCells' technology beyond 2030.
"Group14 is turning the next generation of silicon batteries into a reality for many automotive and aviation customers," Group14 co-founder and CEO Rick Luebbe said in a news release.
CustomCells said in the release it's planning to develop a U.S. factory, but a company spokesperson said CustomCells wasn't providing details on where the factory will be or when it will open.
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Group14 was founded in 2015 as a spinout of energy storage company EnerG2. The company makes a silicon-based anode powder to replace the traditional graphite powder found in most batteries today. The goal is to make batteries cheaper, smaller and longer lasting.
Group14 is starting in consumer electronics but has larger ambitions around electric vehicles. The company in 2022 raised a $614 million Series C round, plus an additional $100 million from the Department of Energy.
CustomCells spun out of the German Fraunhofer Institute in 2012. The company, which has over 200 employees, makes and develops battery cells. It supplies more than 500 customers in the automotive, aviation and maritime industries, among other sectors, according to the company.
Later this year, Group14 plans to finish building its 1 million-square-foot factory campus in Moses Lake in central Washington. The factory will produce silicon battery powder for applications such as electric vehicles. It will house two manufacturing modules to start that will each produce 2,000 tons of Group14's battery powder per year, but Group14 plans to have at least six modules there eventually. Its current Woodinville facility can produce 120 tons per year. The company also has a South Lake Union office.
Moses Lake's strong labor pool and cheap electrical power has drawn other battery technology companies. Alameda, California-based Sila plans to finish its Moses Lake factory in the first quarter of 2025. The company raised $375 million in June. Palo Alto, California-based OneD Battery Sciences is retrofitting two 12,500-square-foot facilities in Moses Lake.
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