Office of Strategic Capital signs $1.4 billion conditional loan commitment with Sila Nanotechnologies to boost US battery production

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. Paired with external equity financing, the package is intended to expand production of silicon-carbon battery anodes and build out a lithium-ion battery cell manufacturing facility.

Officials framed the move as part of an effort to onshore critical materials and bolster the defense industrial base. The project is described as strengthening domestic supply chains for energy storage, AI, data centers, defense and other industrial markets while reducing reliance on foreign sources for key battery components. Expanding anode and cell manufacturing is expected to increase U.S. production of materials used in national-security applications, including satellite operations, unmanned aerial systems, and munitions.

“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 described the commitment as a way to catalyze private-sector expertise while protecting taxpayer resources. In line with the Department of War’s Advanced Battery Strategy, the conditional loan is intended to accelerate domestic manufacturing of advanced battery materials and secure supplies for the defense, energy, aerospace and transportation sectors.

“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 commitment requires Sila to complete customary steps before financial close, including meeting financial, legal, technical, diligence and other requirements. In FY26, OSC has committed over $8.4 billion in debt financing and mobilized more than $17.8 billion in total public and private capital to support the American industrial base.