The companies announced on July 24 that Nexeon, a UK battery startup, will supply high-energy silicon anode material to Panasonic's newest US plant beginning in 2025.

Panasonic battery cells will be able to store more energy and charge faster thanks to the use of silicon-rich anodes, according to the companies. The increased energy density also allows Panasonic to create smaller, lighter packs with comparable range to current battery cells.

The material will be supplied by Nexeon of Abingdon to Panasonic Energy Co's $4 billion De Soto, Kansas plant, which is set to open in early 2025.

Two US startups, Group14 in Woodinville, Washington, and Sila Nanotechnologies in Alameda, California, are among Nexeon's competitors in developing silicon-rich anodes.

Nexeon, which was founded in 2006, has raised more than $260 million and is currently valued at $350 million, according to investor website PitchBook.com. Korea's SK Group, which manufactures batteries and battery materials, is one of its corporate investors and partners.

According to PitchBook, Group14 has raised $650 million and is currently valued at $3 billion. Its corporate investors include German automaker Porsche, as well as SK and BASF. Group14 has a deal to supply silicon anode materials to Porsche affiliate Cellforce.

Sila has raised $935 million and was most recently valued at $3.3 billion, according to PitchBook. Corporate investors include Mercedes-Benz, Siemens, Samsung and Chinese battery giant CATL. Mercedes is scheduled to be Sila’s first automotive customer in 2025, starting with the EQG electric SUV.