US silicon carbon anode developer Sila Nanotechnologies has secured a conditional $1.4 billion federal loan to support an expansion of manufacturing at its facility in Washington state.

Sila confirmed the agreement with the Department of War’s Office of Strategic Capital on August 7, saying the deal will also help expand lithium ion battery cell manufacturing at the firm’s Moss Lake site.

The funding aims to help Sila develop its Titan Silicon anode technology and establish a silicon battery cell facility for speciality applications with what the firm said are rigorous performance requirements — such as industrial, agricultural, and military drones.

The loan was announced during a mining investment event attended by President Donald Trump — where he announced more than $2 billion in critical mining and mining-related projects to revitalise the industry, including over $180 million in mining school investments to bolster the American mining workforce.

Federal backing for Sila comes against a backdrop of what the US government said are significant technology sovereignty challenges, with a structural deficit in domestically produced battery materials and high-performance battery cells.

China controls over 90% of anode material processing and over 80% of global battery cell production, leaving American manufacturers of critical defence technology exposed to a single point of failure, Sila said.

Co-founder and CEO Gene Berdichevsky said: “We solved the hardest problem in battery materials with the invention of the modern silicon anode. But invention is only the first step — manufacturing it at gigascale here in America proves that technology sovereignty is possible.”

The financial boost follows a $300 million equity round in July 2026 led by Sutter Hill Ventures and Atreides Management.

Also in July, lead battery industry leaders in the US welcomed new controls aimed at controlling exports of recoverable critical battery minerals including lead, tin and antimony.

Battery Council International said a directive issued by the US president addressed longstanding concerns of the battery recycling industry and would support the domestic battery supply chain and national security.