Group14 Technologies, a manufacturer of silicon battery storage technology for lithium-ion batteries, secured $34.3 million from ShawKwei & Partners, an Asian private equity investor.
Group14 Technologies uses silicon for the battery anode material rather than the commonly used graphite, which the company claims provides higher energy density as well as faster charging times. Their silicon-carbon composite technology is shipping from the first factory in Washington State. The company is constructing a second commercial-scale factory in Moses Lake, Washington, and completing the commissioning of its joint venture factory in South Korea with SK Materials.
Kyle Shaw, Founder, and Managing Partner of ShawKwei & Partners, said, “Our investment into Group14 follows the successful exit from ShawKwei’s investment with Schmid Silicon and its related group companies. We see efficient and fast-charging batteries as critical to the clean energy transition in Asia as well as the USA and Europe. Group14 is an excellent addition to ShawKwei & Partners’ other energy investments and exemplifies our strategy to invest in cutting-edge science and capabilities to accelerate decarbonization and support the energy transition to a more sustainable future.”
Group14 shareholders include Porsche AG, BASF, Cabot Corp., Resonac (formerly known as Showa Denko), SK Materials (a subsidiary of South Korea’s SK Group), as well as Microsoft Climate Innovation Fund, Lightrock Climate Impact Fund, Moore Strategic Ventures, Oman Investment Authority, OMERS Capital Markets, and Decarbonization Partners.
In July, the company acquired Schmid Silicon Technology Holding, a silane producer based in Europe, for an undisclosed amount to meet the growing demand for silicon battery technology worldwide. As part of the acquisition, Group14 will bring online Schmid Silicon’s silane factory in Spreetal (Schwarze Pumpe), Germany, to support its expanding European operations.
Last year, the company raised $214 million in additional financing and completed its $614 million series C funding round.
VC Funding activity for the energy storage sector was up 27% in 1H 2023, with $3.8 billion in 43 deals compared to $3 billion in 48 deals in 1H 2022, according to Mercom’s 1H And Q2 2023 Funding and M&A Report for Storage & Smart Grid.
