“We just can’t build factories fast enough – there is no constraint, from a demand perspective,” Rick Leubbe of US-based Group14 said.
In a recent interview with Fastmarkets, he delved into the promise of silicon-based anode materials. He argued that, if there is a ramping-up in supply, the technology could revolutionize the electric vehicle (EV) market.
And this is despite headwinds in the development of an ex-China graphite supply chain. Producers in that market have faced lower prices and underwhelming demand, which has depressed graphite prices.
According to some producers, policy uncertainty was also casting a long shadow over aspirations.
But the technological advantages of silicon anode materials meant that they were not subject to the same challenges as traditional graphite anode materials, according to Leubbe.
“When you look at the advantages of silicon anodes, they make graphite obsolete in every way,” he said. “So the only reason not to use silicon [anode material] is because you can’t get it.”
Group14 is a silicon battery material producer and technology developer. In September 2024, the company started deliveries to more than 100 EV and battery makers worldwide of its silicon carbon composite anode material (SCC55) from its factory in South Korea, which is a joint venture with SK Materials.
Silicon has a higher energy density than graphite, but its use in batteries has historically been constrained by the way it swells and degrades during the charging-discharging cycle.
Group 14’s composite limits this swelling by using a novel carbon nanoparticle scaffold. Its anode material should allow a lithium-ion battery’s energy density to increase by as much as 50%, compared with conventional graphite, it says.
The company is now finalizing construction of a first production module at its BAM-2 facility in Moses Lake, in the US state of Washington. This will have capacity for 2,000 tonnes per year of composite anode material at launch – which is expected to be this year. The second module at the plant will have the same capacity and is expected to be completed in 2025.
Leubbe explained that Group14 chose to begin commercial-scale production via a joint venture to be able to offer supply security via supply diversification.
“In the automotive space, it’s really hard for an [original equipment manufacturer] to adopt a new technology if it’s really single source, so we recognized that we needed to mitigate that perception of risk,” he said.
The Korean joint venture, 75% owned by SK, is “geographically, financially and politically independent of Group14 but they’re using the exact same technology platform,” Leubbe said.
Leubbe believes that silicon anode materials could revolutionize the electric vehicle market – particularly by offering super-fast-charging batteries, which in turn could help to overcome the range anxiety that is holding back adoption rates in some regions, notably the US.
“Silicon anode materials are transformational… particularly when you look at extreme fast-charging,” he said.
He believes that extremely fast-charging capacity in batteries could facilitate a shift in the perception of EVs.
Higher energy density through the use of silicon anodes could also allow for smaller and cheaper battery packs, potentially unlocking the cheap EVs needed to boost uptake.
“You’ve cut the size of the pack in half – and you’ve cut $10,000-15,000 from the vehicle cost [by using] silicon anodes over conventional graphite,” Leubbe said.
Commercial interest in Group14’s product has been strong, with Leubbe reporting that its new US production unit has already signed eight ‘take-or-pay’ offtake agreements covering a cumulative value approaching $800 million.
Fastmarkets analyst Amy Bennett acknowledged the potential for silicon-based anodes to replace some graphite demand in the medium term, although graphite is likely to remain the dominant anode material.
“Clearly,” she said, “companies are still investing and exploring investment in increased use of silicon anodes, and we do believe they will increase market share from about 2030 onwards, but we believe graphite will remain dominant in anodes.”
Leubbe echoed previous observations that the supply of silane gas – the crucial precursor for the prevalent silicon anode technology – is a key bottleneck for silicon anodes, particularly with the anode sector competing for supply with the solar-power sector, which also consumes silane.
Recognizing the bottleneck, Group14 purchased German silane gas producer Schmid Silicon in July 2023, and in September of this year announced that it had been selected to receive a grant of as much as $200 million from the US Department of Energy to build a silane plant in Moses Lake, Washington.
The plant will have capacity for 7,200 tpy of silicon anode material which, according to Leubbe, will be more than Group14 needs. Consequently, he said, the company will be supplying other battery raw material producers in Moses Lake.
The presence of silane gas producer REC Silicon has seen Moses Lake become a hub for silicon battery companies. Sila Nanotechnologies, OneD Battery Sciences and Group14 have all established themselves there.
But the vast majority of REC’s output is already earmarked for the solar-power sector, under an offtake agreement with energy solutions provider Hanwha, announced in November 2023.
Leubbe is keen to see Group14’s silane gas enable a scaling-up among other silicon anode companies. “The foothold of the technology is in the US. If we can grow the ecosystem, we will all be more successful,” he said.
Unlike in many more established battery raw materials and technologies, the US is currently enjoying something of a first-mover advantage, compared with China, and Leubbe believes that there is an impetus for policy to support the sector and to build on that advantage.
“We can see policy investment in the silicon anode space, because we invented it and because we’ve got a head start,” he said.
And while he acknowledged that China would “come on strong” in developing its own silicon anode sector, he believes that the US has a “technology advantage.”
Group14 also has plans to expand in other regions, Leubbe said, including Europe, on feedback from customers calling for localized supply chains.
The post Silicon anode development promising despite turbulent ex-China graphite progress, Group14 CEO says appeared first on Fastmarkets.
