Group14 Technologies, a Woodinville, Wash.-based battery manufacturer, announced today that it raised $214 million from investors that include Microsoft’s Climate Innovation Fund.
In May, the company landed a $400 million investment as part of the Series C round, and it was awarded $100 million in federal funding in October. Group14 now has more than 100 employees.
This year’s investments have propelled Group14 into the Pacific Northwest’s cohort of tech heavy hitters seemingly overnight. And its acceleration could likely continue as battery demand is certain to keep growing.
EVs are expected to account for more than half of passenger cars sold in the U.S. by 2030, according to BloombergNEF. Last year they made up less than 5% of American sales. The pace of EV adoption will likely be even faster in Washington state: This month state leaders plan to adopt EV sales targets that match California’s, which require all new light-duty vehicle sales by 2035 to be zero-emission.
Group14’s $614 million round puts it in the top 10 of this year’s climate tech investments, according to PitchBook. The company is now valued at more than $3 billion, the Wall Street Journal reported.
Group14 has developed a silicon-carbon composite material that can replace the graphite anodes in lithium-ion batteries, improving their performance by 50% and providing faster recharging times, according to the company.
The company received $100 million as part of President Biden’s Bipartisan Infrastructure Law to expand domestic battery manufacturing for EVs and the electrical grid. The $400 million investment that comprised the first part of its Series C round was led by Porsche AG, which plans to use the company’s technology in some of its electric vehicles.
The latest funding comes from a consortium that includes Microsoft, Lightrock Climate Impact Fund, Moore Strategic Ventures, Oman Investment Authority and Molicel.
“Batteries are becoming the backbone of the clean energy transition,” said Brandon Middaugh, director of Microsoft’s Climate Innovation Fund, in a statement. “Group14’s technology shows strong potential to accelerate decarbonization of transportation, electronics, energy storage and beyond.”
Microsoft created its $1 billion Climate Innovation Fund in 2020 to back new technologies in carbon reduction and removal, many of which could help the company meet its ambitious goal of becoming carbon negative by 2030. It has invested in more than a dozen companies to date.
Group14 was founded in 2015 and launched its first commercial-scale Battery Active Materials factory in Woodinville in April 2021. It is currently building manufacturing facilities in Eastern Washington’s Moses Lake. That location will be home to two manufacturing modules that will produce enough material to power at least 200,000 EVs, according to the company. Group14 is also building a factory in South Korea as part of a joint venture with SK Inc.
“It comes down to shortening the path to market for OEMs [original equipment manufacturers] so we can meet EV demand today,” said Rick Luebbe, CEO and co-founder of Group14, in a statement.
The company is part of a strengthening hub of battery innovation in the Pacific Northwest. That includes Alameda, Calif.-based Sila Nanotechnologies, which is also building a facility in Moses Lake to manufacture its silicon anode materials. Sila’s first commercial customer is Mercedes-Benz.
“The market has been moving at a breakneck pace,” Luebbe said, “and right now, we’re truly at a crossroads for the future of electrified mobility.”
from GeekWire https://www.geekwire.com/2022/seattle-area-battery-manufacturer-group14-lands-214m-from-microsofts-climate-fund-and-others/