Moses Lake manufacturer lands $200 million federal grant to make EV battery ingredients
Sep. 20—The federal government is set to grant $200 million to Group14 Technologies to build a factory in Moses Lake that will help produce ingredients for next-generation batteries expected to, among other things, power electric cars to travel long distances between charges.
Friday's announcement came with the promise of 300 new jobs in the central Washington community that has found itself in the mix as an important center for new battery research and production.
"This federal investment affirms that the state of Washington is leading the way on advanced battery manufacturing," U.S. Sen. Maria Cantwell said in a statement. "The battery components that will be produced in Moses Lake will create good-paying jobs. Group14 is working to manufacture batteries that will allow for faster-charging electric cars that can go a lot farther between fill ups."
The money will be allocated by the U.S. Department of Energy through the Bipartisan Infrastructure Law.
Specifically, Group14 will negotiate a final award of up to $200 million to build a silane gas plant next to its factory in Moses Lake.
The silane gas will be used to help make silicon battery materials that are expected to be used for silicon-anodes in advanced lithium-ion batteries that are up to 50% more energy dense and charge much faster than traditional batteries.
Much of the world's silane gas is produced in China, according to Group14 CEO Rick Luebbe.
In a company news statement released Friday, Luebbe said, "The supply of silane gas in the U.S. must be increased to secure the U.S. silicon battery industry.
"A new silane factory in Washington state will allow Group14 and other silicon battery companies in the U.S. to source this critical raw material domestically, to support EV-scale battery production and reduce foreign battery supply chain dependence."
The new silane gas plant won't be the first in Moses Lake.
REC Silicon owns the silane gas plant that has been located in Moses Lake for decades.
On Thursday, REC announced a multiyear supply agreement with a different company attempting to develop and upscale its next-generation battery endeavor.
Sila Nanotechnologies Inc., which last year announced it had received a $100 million federal grant, has plans to build its factory near REC.
REC also has a polysilicon plant on the outskirts of Butte. That plant was opened in the late 1990s under Advanced Silicon Materials Inc. to manufacture polysilicon, which was used in the semiconductor industry. As part of that production, and later when REC took over, Advanced Silicon produced silane gas.
REC, which is headquartered in Norway, closed part of its Butte plant earlier this year citing unsustainably high electricity costs. The company announced at the time it would continue producing silane gas at the Butte plant. REC said it was using some cost savings by closing part of its Butte plant to upgrade and restart more production at its facility in Moses Lake.
The plans and funding for the new silane gas plant planned for Group14's business in Moses Lake are envisioned to produce enough silane gas to meet its needs and offer other battery makers a reliable supply as well.
In a news release, Cantwell noted that transporting silane gas is risky and expensive. The gas is toxic and can ignite if exposed to air.
In her efforts to help usher the grant to Group14, Cantwell hosted Energy Sec. Jennifer Granholm in Moses Lake for tours and meetings with company executives two years ago.
Sen. Patty Murray also pushed for the federal investment, noting that much of the silane gas manufactured in the U.S. right now is contracted for making solar equipment without enough available to supply the expected surge of battery makers.
By building another silane gas plant in Moses Lake, Group 14 will be able to directly feed the gas to its own and other battery plants planned for the area, she noted.
Building the plant will require some 300 construction workers. About 150 jobs will be created to run the plant once it's operational, perhaps within two to three years.
Group14, which is based in Woodinville northeast of Seattle, has received a separate $100 million federal grant and leveraged that with $223 million privately raised to begin building its battery factory in Moses Lake. It is expected to created 200 jobs and open perhaps later this year.
