Group14 Technologies, a Washington-based battery material manufacturer, has secured $463 million in a Series D funding round led by SK Inc., with participation from existing investors including Porsche Investments, ATL, OMERS, Decarbonization Partners, Lightrock Climate Impact Fund, and Microsoft Climate Innovation Fund. This latest funding brings the total equity raised by Group14 to over $1 billion. The investment aims to scale the production of Group14's silicon battery material, SCC55, in the United States and South Korea, addressing the increasing global demand for energy storage solutions.
The company's SCC55 is a silicon-carbon composite material designed to replace graphite anodes in lithium-ion batteries. This replacement allows batteries to charge faster and hold more energy. Group14 claims its technology can improve energy density by up to 50% and enable charging times of under 10 minutes. SCC55 is suitable for use in electric vehicles (EVs), consumer electronics, and utility-scale batteries.
In addition to the funding, Group14 has acquired the remaining 75% stake in its joint venture with SK Inc., gaining full ownership of its battery material manufacturing operations in South Korea. This acquisition gives Group14 direct control over its primary manufacturing base in Asia, strategically located near the world's largest battery manufacturers. The joint venture's factory, located in Sangju, South Korea, produces SCC55 at an EV scale to support the global battery manufacturing industry. This factory, known as BAM-3, has a 10-gigawatt-hour capacity and began shipping SCC55 to over 100 customers in the EV and consumer electronics markets in September 2024.
Group14 operates two Battery Active Material (BAM) factories in Washington state. However, the company is delaying the start of production at its flagship battery materials plant in Moses Lake, Eastern Washington, by more than a year, with a new start date in early 2026. The company also laid off an undisclosed number of workers last month. Despite these challenges, Group14 is expanding its infrastructure in Europe with a silane gas factory in Germany, which will supply a critical precursor for next-generation energy storage technologies.
Rick Luebbe, CEO and co-founder of Group14, stated that the funding validates investors' confidence in Group14's role in shaping the future of energy storage. He added that it strengthens regional battery supply chains and safeguards customers from global trade uncertainty.
Group14's success comes amidst growing investor interest in the battery materials sector. The lithium-ion battery market is projected to grow significantly in the next decade, creating sustained demand for technologies like silicon anodes. Silicon anodes are seen as a promising alternative to graphite because they can store more energy. Venture capital firms are increasingly targeting alternative battery materials companies, which have the potential to reduce the cost and size of battery packs.
