Group14 taps Sagunt, Spain for 10 GWh silicon anode plant

Group14 will build a 10 GWh silicon-carbon anode plant in Sagunt, Spain, committing to European production in exchange for a €150 million capital increase from an unnamed investor. That's roughly $169 million, and it pushes the Woodinville, Washington startup's Series D round past $665 million after a year and a half of fundraising.

The location choice is the story. Sagunt is where Volkswagen's PowerCo is building one of its major battery cell factories — a plant that is set to become a joint venture with Gotion High-tech. Group14 says it wants its SCC55 material positioned "directly adjacent to key European OEM supply chains." Given Porsche's longstanding role as investor and partner, speculation about the anonymous investor's Volkswagen connections writes itself. It's plausible. It's also unconfirmed.

What does the new plant add to Group14's footprint?

The Spanish module lifts Group14's short-term total capacity to 40 GWh per year, according to the company. The current network:

• A commercial pilot plant in Woodinville, operational since 2021
• A 10 GWh facility in Sangju, Korea
• Two planned 10 GWh plants in Moses Lake, Washington, due to open in 2027
• The new 10 GWh module in Sagunt

For the next decade, Group14 says it's targeting production capacities in the "hundreds of gigawatt-hours." Announced intention, not confirmed output — treat accordingly.

CEO and co-founder Rick Luebbe framed the logic plainly: "To truly transform the energy economy, battery material producers must be located where the batteries are made. Our expansion into Spain reflects our vision: staying nimble, building near key customer hubs, and maintaining secure, localised supply chains."

In short: materials follow cell plants. Geography is strategy.

Where does SCC55 already earn its keep?

The company claims commercial traction for SCC55 in smartphones, drones, hypercars and eVTOL aircraft. EV batteries are the intended next frontier. The material's selling point is straightforward — it replaces graphite with silicon-carbon anodes in lithium-ion cells.

How deep do the German ties run?

Deep, and not always happily. Porsche first invested in Group14 during the 2022 Series C round, putting $100 million into a $400 million raise. At the time, Porsche said Group14 would supply Cellforce, its battery subsidiary. Porsche announced earlier this year that Cellforce will shut down completely.

Elsewhere in Germany:

• In 2023, Group14 acquired Schmid Silicon, which runs a monosilane gas facility in the Schwarze Pumpe industrial park on the Saxony-Brandenburg border. Monosilane is a key precursor for Group14's silicon technology.
• In 2025, V4Smart — Porsche's renamed, acquired Varta battery subsidiary — unveiled a second-generation cell that will use Group14's anode material.
• CustomCells signed a supply agreement with Group14 shortly before sliding into insolvency a few months later.
• BASF and Group14 presented a market-ready silicon anode solution earlier this year, pairing BASF's Licity 2698 X F binder with SCC55.

That's three German partnerships, one shutdown and one insolvency. The BASF tie is the one still standing at full strength.

What to watch next

Three markers will tell us whether Sagunt is real money or press-release capacity: the naming of the €150 million investor, ground-breaking at the Spanish site, and any confirmed offtake deal with PowerCo or the Gotion joint venture. Group14 raised $463 million in 2025 before this latest tranche — the cash is there. The customer contracts are the missing receipt.