Group14 Awarded $200 Million to Build Silane Factory, Securing U.S. Battery Supply Chain

Group14 Technologies, a global leader in advanced silicon battery materials, has been awarded a significant grant from the U.S. Department of Energy (DOE) to build a state-of-the-art silane factory in Washington state. This $200 million grant, awarded through the Bipartisan Infrastructure Law, marks the second time Group14 has been selected for a major DOE project, following its initial $100 million award in 2022.

The new facility will play a crucial role in securing the U.S. battery supply chain. Currently, China is the world’s primary source of silane gas, a critical raw material for silicon-based batteries. By establishing a domestic silane production plant, Group14 aims to reduce the U.S.’s dependence on foreign imports and ensure a reliable supply of this essential material for the burgeoning electric vehicle and grid-scale battery industries.

The project will involve the installation, commissioning, and operation of a silane manufacturing plant capable of producing 7,200 metric tons of silane annually. Group14 will leverage its proprietary technology to produce silane with significantly reduced capital and energy requirements compared to conventional methods.

The strategic location of the plant in Moses Lake, Washington, offers several advantages. It allows for direct supply of silane to local silicon battery manufacturers, addressing a critical bottleneck in the industry. The project is expected to create over 300 jobs during construction and maintain 150 jobs for ongoing operations.

Group14 is rapidly expanding its global manufacturing capabilities. The company’s BAM-1 factory in Woodinville, Washington, has been producing silicon battery materials at the ton-scale since 2021 and has delivered shipments to over 100 customers, representing 95% of global lithium-ion battery production. Its second U.S. factory, BAM-2 in Moses Lake, is set to become the world’s largest facility for advanced silicon battery materials with an initial annual capacity of 4,000 tons, or 20 GWh of silicon battery material. The first phase of BAM-2, with a capacity of 2,000 tons (10,000 GWh), is expected to begin production in Q4 2024.

With over 30 GWh of production capacity when combined with its joint venture in South Korea, Group14 is poised to become a leading mass producer of advanced silicon materials for the electric vehicle market.

This significant investment by the DOE signifies a commitment to developing a robust and reliable domestic battery supply chain. By securing access to critical raw materials like silane, the U.S. is taking a significant step towards achieving energy independence and accelerating the transition to a cleaner and more sustainable energy future.

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