Dec 11 (Reuters) - Battery materials company Sila will supply nano-composite silicon anode to Panasonic Energy, to be used in the manufacture of lithium-ion batteries, the companies said on Monday.

To meet the rapidly growing demand for electric vehicles, Panasonic plans to increase global production capacity of automotive batteries to 200 GWh by 2030-31. Lithium-ion batteries are essential for the EV industry.

Panasonic Energy is a major Tesla supplier. The financial terms of the deal were not disclosed.

The Biden administration had earlier this month issued guidance that will limit Chinese content in batteries eligible for EV tax credits starting next year, designed to wean the U.S. electric vehicle battery chain away from China.

Sila's components will also be used in an upcoming version of the Mercedes-Benz G-Class series.

(Reporting by Arsheeya Bajwa in Bengaluru; Editing by Krishna Chandra Eluri)