The Department of War's Office of Strategic Capital (OSC) announced today a $1.4 billion conditional loan commitment to Sila Nanotechnologies, Inc. (Sila), a U.S.-based manufacturer of advanced battery materials that directly supports the U.S. defense industrial base. The proposed loan from OSC, coupled with external equity financing, would support expanded production of silicon-carbon (Si/C) battery anodes and the buildout of a lithium-ion battery cell manufacturing facility.
This commitment executes on President Trump's mandate to aggressively onshore critical materials to enhance America's defense industrial base. The project would strengthen domestic supply chains serving vital energy storage, AI, data center, defense and other important U.S. industrial markets while reducing reliance on foreign sources for critical battery manufacturing components. The expansion of Si/C anode and battery cell manufacturing would increase U.S. production of advanced materials used in national-security applications, including satellite operations, unmanned aerial systems, and munitions that support combat operations.
"Under the leadership of President Donald J. Trump, advanced battery technologies are a priority for the Department of War as important enabling components for critical sectors of the defense industrial base and U.S. economy. OSC's proposed financing would help expand domestic production capacity, strengthen vulnerable supply chains, and support continued American leadership in producing advanced batteries at scale," said David A. Lorch, Director of the Office of Strategic Capital and Senior Advisor to Deputy Secretary of War Steve Feinberg.
OSC's commitment is designed to catalyze private sector expertise while rigorously protecting taxpayer resources. In line with the Department of War's Advanced Battery Strategy, this conditional loan is intended to accelerate the expansion of domestic manufacturing operations for advanced battery materials, securing a reliable supply of critical components for the defense, energy, aerospace, and transportation industries.
"This commitment has the potential to transform the domestic battery supply chain," said Asad Akram, Managing Director and Co-Head of Critical Minerals at OSC. "In doing so, it would provide crucial material for a variety of applications critical to the U.S. warfighter as well as the U.S. economy writ large."
"By leveraging a public-private partnership, Sila is positioning itself to fulfill a material portion of U.S. core anode demand," said Peter B. Zuckerman, Senior Managing Director at OSC. "The contemplated transaction could therefore help end the foreign stranglehold over the battery supply chain."
"Securing our domestic supply chains is vital to building a lethal Arsenal of Freedom for the American warfighter," said Emil Michael, Under Secretary of War for Research and Engineering. "President Trump, Secretary Hegseth, and Deputy Secretary Feinberg have made it abundantly clear that we require unabated access to critical materials right here at home. This OSC loan commitment drives the Department of War's concerted effort to close vulnerabilities and secure the critical batteries that the Joint Force requires."
The conditional loan commitment between OSC and Sila specifies customary additional steps the company must take to proceed toward financial close, including satisfying financial, legal, technical, diligence, and other requirements.
In FY26, OSC has committed over $8.4 billion in debt financing and mobilized over $17.8 billion in total capital from the public and private sectors to support the American industrial base.
