Alameda, California-based battery technology company Sila is continuing to make inroads in central Washington.
On Thursday, Sila announced a supply deal with REC Silicon for a silane, a key gas for silicon-based battery technology. REC is headquartered in Norway but has a plant in Moses Lake, right across the street from where Sila is developing a massive factory.
Sila co-founder and CEO Gene Berdichevsky didn't say how much the deal was worth, but he said REC will produce enough silane for Sila's near-term commitments.
"The practical reality is there's not a lot of silicon anode shipping in the world today, and for the foreseeable future there is enough silane capacity, but you do have to partner with someone," Berdichevsky said. "(REC) gets a good price, but we got a fair price out of it. We're both happy campers. We don't have to build a huge plant, and they get a good deal."
Sila, founded in 2011, makes a silicon-based anode powder meant to replace the traditional graphite powder found in most batteries today, with the aim of making batteries cheaper, smaller and longer lasting. The company already powers a wearable fitness tracker called the Whoop, but its larger ambitions — and a major reason for the plant in central Washington — include electric vehicles.
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Sila bought the more than 600,000-square-foot Moses Lake facility in 2022, and the company previously told the Business Journal it would cost in the "low nine figures" to get it ready for production. The company, which raised $375 million in June and $590 million in 2021, expects to finish the factory in the first quarter and start shipping to auto customers in late 2025.
Sila at the time of its 2021 raise was valued at $3.3 billion, confirming its status as a "unicorn" company.
Berdichevsky couldn't say exactly how much silane REC will produce for Sila because the amount will change over time. Although Sila already gets some silane from REC, the new deal ensures more volume, guaranteed pricing and certainty of supply, he added. This deal doesn't require REC to build out more supply, according to Berdichevsky, as REC has excess silane between Moses Lake and its plant in Butte, Montana.
REC is a polysilicon producer for the solar industry that makes silane as a byproduct. REC closed its Moses Lake plant in 2019 amid a trade fight with China but in 2022 announced it was reopening the Moses Lake plant after a major investment from South Korean manufacturing company Hanwha Corp. The company is planning to restart commercial shipments in October.
Moses Lake's cheap electrical power and strong industrial labor pool are attracting multiple battery tech companies. Woodinville-based Group14 Technologies is building a 1 million-square-foot factory campus in Moses Lake slated to open later this year. Palo Alto, California-based OneD Battery Sciences in August opened two 12,500-square-foot facilities in Moses Lake.
Group14 on Friday secured up to $200 million from the U.S. Department of Energy to build a separate silane factory in Moses Lake. The company plans to sell silane to others in the battery tech industry.
Berdichevsky said having more silane providers is good for the industry, but Sila is happy with its REC deal for now. He added that Sila is deeply committed to Moses Lake given its new factory, but the region is constrained on delivering additional power due to regulatory requirements.
"We see that as really the biggest risk to building additional capacity in Moses Lake," Berdichevsky. "I think that's a risk for everybody. I think if the region is not careful, it can scare off the golden goose."
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