Microsoft plans to invest in electric vehicle charging start-up

The $1 billion climate innovation fund of Microsoft Corp is eyeing a battery startup that is trying to dramatically improve power and charging time of electric vehicles.

Group14 Technologies, which is valued at more than $3 billion, is getting $214 million from investors. Other investors include Oman’s sovereign-wealth fund and a climate fund backed by private-equity firm Lightrock.

Microsoft however declined to disclose the size of its investment.

Group14 recently received a $100 million grant from the U.S. Energy Department through last year’s infrastructure bill. It raised a $400 million earlier this year from investors including Porsche AG, POAHY, Riverstone Holdings and a joint venture between BlackRock Inc. and Singapore state-owned investor Temasek Holdings Ltd. The latest funding round values Group14 above $3 billion.

The Woodinville, Wash.,-based company says its existing commercial factory in Washington puts it ahead of other start-ups trying to scale similar technology, such as Sila Nanotechnologies Inc., Enovix Corp. and Amprius Technologies Inc. It further says that its silicon anode material is more efficient than existing graphite technology, potentially fueling more powerful batteries for auto makers such as Porsche.

Industry executives say silicon batteries should help enable ultrafast charging, another key step toward increasing adoption of electric cars.

The 2015 founded company plans to use the new funding to accelerate development of a larger manufacturing facility in central Washington that will produce material for batteries capable of powering at least 100,000 electric cars.

“The industry recognizes that this is happening and they can either participate or watch it happen without them,” Group14 Chief Executive Rick Luebbe said.

China and other countries dominate the production of battery materials, and companies like Group14 and others attempt to play catch-up to feed manufacturing facilities.

Brandon Middaugh, director of Microsoft’s climate fund, said the company considered roughly 30 to 40 investments in the sector before putting money into Group14.