New York-headquartered battery technology company GDI has secured €20 million ($22m) from the European Investment Bank (EIB) to develop its silicon anode technology for electric vehicles.

The funding, in the form of a quasi-equity loan, is part of the InvestEU programme which aims to trigger over €372 billion in investment in new technologies by 2027.

The EIB said Wednesday the loan will help GDI scale up its silicon anode production at a factory in Lower Saxony, Germany, owned by Belgian automotive glass supplier AGC Glass Europe. Schlenk SE, a German copper foil company, will supply industrial-scale copper foil for the project, Kallanish learns.

“This alliance of experienced European industrial companies with a US-based technology scale-up company demonstrates the attractiveness of the European market to emerging US businesses,” the EIB says.

GDI’s silicon anode technology can offer 30% higher lithium-ion cell energy density, compared to graphite anodes, the company claims. A third-party testing of the anodes last month also showed that in addition to increasing battery range, it can decrease charging time by around two-thirds. GDI and AGC were also the first in the world to demonstrate roll-to-roll, megawatt-scale pilot production of 100% silicon anodes.

“After intensive discussions and due diligence with the EIB, our result is a partnership that will lead to Europe’s first gigafactory for 100% silicon anodes,” says Rob Anstey, GDI founder and ceo. “We will be one of the few companies that succeeds in scaling next-generation Li-ion technology to industrial manufacturing in partnership with the EIB, Schlenk SE, and AGC.”

The technology is expected to make EVs “more attractive” to consumers, the bank says, referring to its longer range, quicker charging time and cleaner environmental credentials.

“To make the green transition work in the transport sector, the development of improved battery technology for all kinds of vehicles is crucial,” notes EIB vice president, Ambroise Fayolle. “We at the EIB are happy to support GDI’s innovative technology, that helps the industry to replace graphite, a critical raw material, with silicon that is available everywhere in the world.”

Through the so-called silicon anode alliance with AGC and Schlenk, the US anode developer is targeting a production capacity of 25 megawatt-hours by 2025. Production should be ramped up gradually, Anstey tells Kallanish. The current plan targets 100 MWh by 2026, 500 MWh by 2028 and “multiple gigawatt-hours by 2029/2030.”

GDI’s patented technology is estimated to reduce greenhouse gas emissions by 80% compared to traditional graphite anodes, particularly Chinese-made anodes based on synthetic graphite. The anode has recently achieved over 280 watt-hours per kilogram in energy density in a 3-ampere-hour pouch cell design.