Group14 Technologies, a developer of materials that enhance the output of lithium-silicon batteries, raised $400 million in Series C funding.

Porsche AG led the round with OMERS Capital Markets, Decarbonization Partners, Riverstone, Vsquared Ventures, Moore Strategic Ventures, and other institutional investors.

Group14 said the new funds would enable the company to begin constructing its second plant in the U.S.

According to the company, the materials it supplies help boost lithium-silicon batteries by 50% compared to traditional lithium-ion batteries.

The company said that more automakers would be turning to lithium-silicon because it is compatible with existing manufacturing processes.

Porsche has produced sustainable sports cars for more than 70 years. In March, the German company, which Volkswagen AG owns, said it expects electric vehicles to account for 80% of its global sales by 2030. Porsche also plans to build its charging network.

Over the past year, the company has launched a commercial-scale Battery Active Materials factory in the U.S. and commenced a joint venture factory with SK Group in South Korea.

Citi and Nomura Greentech acted as joint placement agents on this transaction.

“Our investment in Group14 is an important step for Porsche’s M&A activities. We have been actively investing in ambitious companies since 2016, and through our venture capital unit Porsche Ventures, we have gained a deep understanding of the venture capital world and are excited to lead this round,” said Lutz Meschke, deputy chairman and member of the executive board of Finance and IT at Porsche AG.

Porsche’s partnership with Group14 comes days after the Biden administration announced it would allocate more than $3 billion to assist electric vehicle battery manufacturing in the U.S. The funding will come from the Department of Energy and is part of President Biden’s $1 trillion infrastructure bill in 2021. Among the goals is to increase the processing of minerals used in EV batteries and to make it easier to recycle those batteries. Biden wants half of all new vehicles sold in the U.S. to be battery-powered by 2030.

In Q4 2020, Group14 Technologies secured $17 million in Series B funding from SK Materials and OVP Venture Partners.

According to Mercom’s Q1 2022 Funding and M&A Report for Storage, Grid & Efficiency, VC funding raised by Battery Storage companies in Q1 2022 came to $1.1 billion in 21 deals, a 15% increase compared to $1 billion in 14 deals in Q1 2021. Quarter-over-quarter funding was 28% lower compared to $1.6 billion in 21 deals in Q4 2021.