Tariffs sluggish Group14’s battery production plans — but information center demand opens potential recent growth

Group14 has delayed the begin of production of its battery materials at its BAM2 facility in Moses Lake by more than a year.

(Group14 Photo) Group14 Technologies is slowing the launch of its flagship battery materials plant in Eastern Washington, pushing the begin of production to early 2026, as tariff tensions and uncertain U.S.

Policy cloud the outlook for clean energy manufacturing.

Despite the delay, the firm remains optimistic about long-term customer demand and a potentially huge recent market for Group14’s silicon anode product as information center operators are adding utility-scale batteries to their authority supplies.

“We understand that AI information centers are strategically critical to the United States’ economy and this is just another tech that is enabling [AI expansion],” stated Group14 CEO Rick Luebbe.

Group14’s tech is used in next-generation batteries that hold more authority and require less time for recharging.

The firm has raised $649 million from investors and its headcount is 400 individuals.

It had previously planned to open its BAM2 facility in Moses Lake in late 2024.

Luebbe cited several factors he believes are working in his 10-year-old firm’s favor: Information centers are adding batteries for rapidly available authority when energy utilize spikes.

In the U.S.

Alone, utility-scale battery storage capacity is anticipated to double this year.

While EV adoption is projected to sluggish, it’s still on the rise.

(Bloomberg NEF predicts nearly 22 million passenger EVs will be sold this year — marking a 25% rise from last year — with China making two-thirds of the purchases.) Group14 customers additionally include consumer electronics.

Group14 has a manufacturing facility in South Korea that is a joint venture with electronics firm SK materials.

That plant will begin operating at full capacity next month and its output will be available to Chinese customers without U.S.

Tariffs.

Group14 increased its slate of customers from 110 in September to 150 nowadays.

While tariffs dampened interest from China, Luebbe stated there is “huge” demand from the U.S.

And Europe.

Other battery efforts in Washington are likewise trying to weather less predictable conditions.

Last month, OneD Battery Sciences reportedly pulled the plug on its pilot plant in Moses Lake, while Sila is commissioning its battery materials facility in the same town and plans to begin production this year.

Group14 in September was awarded a $200 million U.S.

Department of Energy grant to build a Moses Lake plant that would produce silane gas, an essential ingredient for manufacturing silicon battery materials.

That aid could be pulled by the Trump administration, but Luebbe stated the effort will proceed regardless.

The firm has largely spent a separate $100 million DOE grant that it received in 2022 as part of the Bipartisan Infrastructure Deed.

The funding was meant to bolster America’s battery manufacturing industry and challenge China’s dominance in the field.

It helped pay for the BAM2 facility.

Luebbe hopes the firm can navigate past the politicization of clean energy and appeal to more universal demands.

“This is job creation.

This is factories, industrialization.

This is creating a recent industry.

This is a chemical plant,” Luebbe stated.

“We are behind a whole recent opportunity in advanced materials production for all kinds of applications that are really critical.” Editor’s note: This story has been updated to correct the fact that Group14 has received most of the $100 million federal grant awarded in 2022.