# Coreshell Secures $30 Million to Replace Chinese Graphite With American Silicon California-based startup scales domestic battery production to meet new U.S. military supply chain mandates. - **Source:** [Heatmap](https://heatmap.news) - **Published:** 2026-11-11 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/898dfba7-d6e5-43b1-9858-88ae47c3f416 ## Strategic Capital Infusion Coreshell successfully raised $30 million in a Series B funding round led by Ferroglobe and Access Industries. This capital injection aims to scale manufacturing operations to support growing demand from the U.S. military. The startup is shifting focus from automotive prototypes to immediate defense applications for Navy and Army vehicles. ## Defense Supply Chain Mandates The 2025 National Defense Authorization Act prohibits Chinese-linked battery materials in military equipment starting in 2028. Currently, China processes over 90% of the global graphite supply used in lithium-ion anodes. Coreshell is positioning itself to fill this critical gap by utilizing American-mined silicon instead of traditional imported graphite materials. ## Scaling Domestic Production A $50 million Department of Energy grant awarded in August is fueling the construction of a 2-gigawatt-hour commercial factory. This facility is twenty times larger than the startup's original pilot plant design. Coreshell plans to finalize the site selection early next year to begin domestic electrode production by 2028. ## Proprietary Silicon Technology Silicon anodes offer higher energy storage than graphite but typically suffer from rapid degradation due to swelling during charging. Coreshell addresses this by applying a proprietary ultra-thin protective coating to the anode. Unlike competitors using expensive silane gas, Coreshell utilizes cheaper metallurgical silicon, which is a widely available raw commodity. ## Defense Over Automotive While the company maintains long-term automotive ambitions, defense applications provide a faster path to commercialization and revenue. Military hardware often has less stringent cycle-life requirements compared to consumer electric vehicles. This strategic pivot allows Coreshell to build manufacturing scale while continuing to refine its technology for the broader automotive market. ## Strategic Investor Alignment The inclusion of defense contractor ADS as a strategic investor underscores the military's commitment to securing domestic battery sources. By partnering with Ferroglobe for U.S.-refined silicon, the company ensures its entire supply chain remains compliant with federal regulations. This vertical integration is designed to mitigate risks associated with reliance on foreign suppliers. ## Operational Expansion Challenges CEO Jonathan Tan reports that the company is no longer demand-limited, necessitating second and third shifts at their current facilities. The transition from pilot-scale production to a gigafactory requires significant additional capital beyond the recent funding. The company expects its federal backing to help diversify its capital stack for future growth. ## Future Market Outlook Coreshell plans to bring full cell assembly in-house by 2029, moving away from reliance on unnamed contract manufacturers. The company remains committed to proving its technology for the automotive sector, which represents the largest global battery demand. Future success depends on balancing defense-sector reliability with the high-performance demands of commercial EVs. ## Sources covering this story - https://heatmap.news/climate-tech/coreshell-series-b — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._