Mitra Chem Secures $50M for Affordable US Battery Materials
▼ Summary
– Mitra Chem has raised $15.6 million of a planned $50 million funding round to develop advanced lithium-iron-phosphate (LFP) battery materials.
– LFP batteries are gaining traction among automakers to reduce EV costs, though all LFP materials currently come from outside the U.S., primarily China.
– The funding round occurs amid slower-than-expected EV sales growth and political challenges, including potential sunsetting of EV tax credits.
– Mitra Chem previously raised $60 million in a 2023 Series B led by GM and secured a $100 million DOE grant for a Michigan plant, though funds haven’t been disbursed yet.
– South Korea’s L&F Corporation likely joined the new round after investing $10 million in March, per reports.
Mitra Chem, a rising star in the battery materials sector, has secured $15.6 million toward its ambitious $50 million funding round, signaling strong investor confidence despite market headwinds. The California-based startup specializes in advanced lithium-iron-phosphate (LFP) battery technology, aiming to boost energy storage capacity while reducing costs for electric vehicles.
LFP batteries have gained traction among automakers seeking affordable alternatives to traditional lithium-ion options, but nearly all production currently relies on overseas suppliers, particularly China. Mitra Chem’s efforts to localize this supply chain could reshape the U.S. battery market, though challenges persist. EV adoption has slowed compared to earlier projections, and political uncertainty looms as debates over federal tax credits threaten to disrupt industry growth.
The startup isn’t new to major backing. Its 2023 Series B round, led by General Motors, pulled in $60 million, with participation from In-Q-Tel and Social Capital. Earlier, Chamath Palihapitiya’s venture firm spearheaded a $20 million Series A. Recent reports suggest South Korea’s L&F Corporation may join the current round after investing $10 million earlier this year.
Adding to its momentum, Mitra Chem landed a $100 million DOE grant in 2023 to establish a Michigan-based production facility. While the funds haven’t yet been disbursed, the project remains active, potentially accelerating domestic battery material manufacturing. As the industry navigates shifting demand and policy landscapes, Mitra Chem’s progress could prove pivotal in reducing reliance on foreign supply chains.
(Source: TechCrunch)
