Mitra Chem gets $15.6M to beat China’s LFP battery game
Mitra Chem, a battery material startup, has secured $15.6 million in funding toward a planned $50 million round. The company aims to improve the energy storage capacity of lithium-iron-phosphate (LFP) batteries, according to a TechCrunch report.
LFP batteries are gaining traction among automakers seeking to reduce the cost of electric vehicle battery packs. Currently, all LFP material originates outside the United States, primarily from China.
The funding round occurs during a period of slower-than-anticipated growth in electric vehicle sales, coupled with challenges from the Trump administration and congressional Republicans. A House bill proposes ending EV tax credits in 2025 or 2026, depending on automaker sales volumes. The Senate has not yet addressed this bill.
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Mitra Chem previously completed a $60 million Series B round in 2023, led by GM, with participation from In-Q-Tel and Social Capital. Social Capital, led by Chamath Palihapitiya, spearheaded the startup’s $20 million Series A in 2021. The Korean Economic Daily reported that L&F Corporation, a South Korean battery materials company, is likely to participate in the new round, potentially contributing $10 million as they invested this amount in March.
Mitra Chem received a $100 million grant from the Department of Energy last year to establish a battery materials plant in Michigan. Federal records indicate the grant remains pending disbursement.