US battery startup Group14 Technologies has acquired Schmid Silicon from Schmid Group.

This move will enable the production of battery materials, replacing graphite in the negative anode.

The company anticipates increasing demand from the country’s automotive sector for technology which can decrease dependence on China and ensure a secure supply chain.

Schmid Silicon’s ultra high purity and low carbon silane process technology combined with Group14’s established manufacturing capabilities will produce high energy density silicon battery materials.

Group14 is backed by Porsche and has been granted US$100m by the US government to help boost battery supply chains.

Schmid Silicon’s silane factory in Spreetal, Germany, will support growing Group14 European operations.

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The acquisition will provide Group14 with a stable supply of silane gas, a precursor for its silicon battery technology, SCC55.

The company is shipping SCC55 for 90% of worldwide lithium ion battery production from its factory in Washington state.

Group14 plans to retain all current Schmid Silicon employees.

It anticipates a five times expansion of its workforce and is considering locations for its first European offices.

It is also building a second US factory in Moses Lake and completing commissioning of its joint venture factory with SK in South Korea.