The Office of Strategic Capital Signs $1.4 Billion Conditional Loan Commitment With Sila Nanotechnologies, Inc. to Enhance American Battery Production
The U.S. Department of War’s Office of Strategic Capital committed a $1.4 billion conditional loan to Sila Nanotechnologies to expand domestic battery anode and cell production, aiming to reduce reliance on foreign supply chains for defense and industrial sectors.
The Department of War’s Office of Strategic Capital (OSC) announced a $1.4 billion conditional loan commitment to Sila Nanotechnologies, Inc., a U.S.-based manufacturer of advanced battery materials. The funding would support expanded production of silicon-carbon battery anodes and the construction of a lithium-ion battery cell manufacturing facility. The project aligns with President Trump’s directive to strengthen domestic supply chains for critical materials in defense and industrial applications. OSC stated the initiative would enhance U.S. production capacity for components used in national-security systems, including satellites, unmanned aerial systems, and munitions.
OSC Director David A. Lorch emphasized the loan’s role in expanding domestic production capacity and securing vulnerable supply chains. The commitment is part of the Department of War’s Advanced Battery Strategy, designed to accelerate domestic manufacturing of advanced battery materials. Lorch noted the project would support critical sectors such as defense, energy, aerospace, and transportation. The conditional loan is structured to protect taxpayer resources while leveraging private sector expertise.
Asad Akram, Managing Director and Co-Head of Critical Minerals at OSC, highlighted the potential of the commitment to transform the domestic battery supply chain. He stated the project would provide crucial materials for U.S. military and economic applications. Peter B. Zuckerman, Senior Managing Director at OSC, added that the transaction could help reduce foreign dependence on battery supply chains. The loan commitment follows customary financial, legal, technical, and diligence requirements before finalization.
Emil Michael, Under Secretary of War for Research and Engineering, underscored the importance of securing domestic supply chains for military readiness. He noted the Department of War’s efforts to eliminate vulnerabilities in critical material access. In FY26, OSC has committed over $8.4 billion in debt financing and mobilized $17.8 billion in total capital to support the American industrial base.