US battery materials manufacturer Group14 Technologies has secured €150 million in new funding from an unnamed European investor, alongside a commitment to establish a silicon anode production facility in Spain.
The investment will support the expansion of the company’s SCC55 silicon-carbon anode material manufacturing operations into Europe. Group14 has selected Sagunt, in the Valencia region, for its next industrial-scale production module, which will have an initial annual capacity of 10 GWh.
The company said the Spanish facility would place its battery materials production closer to major European automotive manufacturers and battery supply chains.
Sagunt Selected for European Production Expansion
Group14 plans to establish the new facility in Sagunt, where Volkswagen subsidiary PowerCo is developing a major battery cell manufacturing plant. PowerCo’s project is also expected to become a joint venture involving China’s Gotion High-tech.
The proximity could create opportunities for Group14 to supply materials to European battery manufacturers and automotive companies, including those within the Volkswagen Group. However, the identity of the investor providing the €150 million has not been disclosed, and there is no confirmation that it is connected to Volkswagen or its affiliated companies.
Group14 said the decision to establish production in Spain reflects its strategy of locating manufacturing operations close to key customers and regional battery supply chains.
“To truly transform the energy economy, battery material producers must be located where the batteries are made. Our expansion into Spain reflects our vision: staying nimble, building near key customer hubs, and maintaining secure, localised supply chains.”
— Rick Luebbe, CEO and co-founder of Group14 Technologies
Production Capacity Set to Reach 40 GWh
The planned Spanish facility will add 10 GWh of annual capacity to Group14’s manufacturing network. According to the company, the expansion will bring its short-term total production capacity to 40 GWh.
Group14 currently operates a commercial pilot facility in Woodinville, Washington, which has been running since 2021, and a 10 GWh production site in Sangju, South Korea.
The company also plans to bring two additional facilities online in Moses Lake, Washington, in 2027. Each is designed for 10 GWh of annual capacity.
Beyond these projects, Group14 has outlined ambitions to develop manufacturing capacity measured in hundreds of gigawatt-hours over the next decade.
Silicon-Carbon Anodes Target Wider Battery Applications
Group14 develops SCC55, a silicon-carbon material designed to replace conventional graphite anodes in lithium-ion batteries.
The company says the material has already gained commercial traction in applications including smartphones, drones, hypercars and electric vertical take-off and landing (eVTOL) aircraft. Its expansion into Europe is also intended to support wider adoption in electric vehicle batteries.
Group14’s SCC55 Silicon Anode Surpasses 1,500 Charge Cycles, Marking Milestone in Battery Durability
Silicon-based anodes offer an alternative to graphite in lithium-ion cells and are being developed to improve battery performance. Establishing production near European battery manufacturers could help Group14 integrate its materials into regional cell supply chains.
Funding Round Exceeds $665 Million
The €150 million investment, equivalent to approximately $169 million, takes Group14’s Series D funding round beyond $665 million, according to the company.
The latest capital commitment follows a substantial fundraising round in 2025, when Group14 secured $463 million from investors, including an additional investment from Porsche. The Series D financing has therefore extended across nearly a year and a half.
Porsche has been one of Group14’s significant strategic investors. In 2022, the German automaker invested $100 million as part of the startup’s $400 million Series C funding round.
At the time, Porsche also announced plans for Group14 to supply battery materials to Cellforce, its battery subsidiary. Porsche has since announced that it will shut down Cellforce.
Group14 Maintains Several German Industry Partnerships
Group14 has developed a network of partnerships and industrial connections in Germany. In 2023, the company acquired Schmid Silicon, a German business operating a monosilane gas production facility in the Schwarze Pumpe industrial park, located near the border between Saxony and Brandenburg. Monosilane is an important precursor used in Group14’s silicon battery technology.
Another connection involves V4Smart, the renamed and acquired battery subsidiary of Varta. In 2025, V4Smart presented its second-generation battery cell and announced plans to use Group14’s anode material.
Group14 also signed a supply agreement with German battery manufacturer CustomCells. However, CustomCells became insolvent several months after the agreement was announced.
The company has a separate partnership with German chemicals producer BASF. Earlier this year, the two companies presented a silicon anode solution combining Group14’s SCC55 material with BASF’s Licity 2698 X F binder. The solution is designed to replace graphite in lithium-ion batteries.
The planned Spanish facility represents another step in Group14’s efforts to expand its manufacturing footprint and establish a stronger position in the European battery materials market.