The Japanese electronics conglomerate Panasonic recently signed a deal with the American start-up Sila to procure silicon that will be used in electric vehicle batteries.

According to Power Technology, Panasonic will integrate Sila’s silicon anodes into batteries at all of its factories.

Sila said that it sees the partnership with Panasonic as an opportunity for the U.S. to lead the charge in "manufacturing next-generation battery technology.”

During an interview with the Financial Times, Sila CEO Gene Berdichevsky emphasized the potential of silicon anodes, saying that the U.S. making graphite as cheap as China “is a fool’s errand.”

Panasonic currently manages two battery plants in Mexico and the U.S. with plans to open two more North American factories by 2031. The company also wants to develop its North American supply chain further to ensure stable sourcing while addressing logistical and human rights challenges, said Allan Swan, Panasonic Energy’s president of North America.

Silicon can provide cars with more energy density, which can extend driving ranges and speed up charging times for EVs.

However, some critics argue that silicon tends to swell, which can lead to anode particles fracturing or becoming electronically disconnected. Skeptics also said integrating new components into vehicle production could be a lengthy process.

This comes after the U.S. Department of Energy announced it would be investing $250 million in domestic companies to promote the development of silicon-based batteries.