On the 20th, LNF announced its decision to invest approximately KRW 14.5 billion in local partner Mitra Chem to prepare for local LFP (lithium phosphate iron) production in the United States. The investment will be made in the form of acquiring preferred stocks in Mitra Chem’s Series B-1 round.
Mitrachem was founded in 2021 by Tesla alumnus Vivas Kumar with the aim of establishing a LFP supply chain in the US and manufacturing products in compliance with IRA regulations, and has successfully raised $75M from investors including GM by 2023.
Mitrachem is currently testing multi-ton LFP products with customers, and is also developing next-generation materials, LFMP and precursor-free LFP cathode materials. In particular, the company said that its unique acceleration platform, developed by applying its own AI and automation to R&D, can significantly shorten the development period while rapidly developing large quantities of products.
Through this investment, L&F plans to strengthen its strategic collaboration with Mitrachem and use it as a bridgehead for local LFP production in the United States. Mitrachem has already demonstrated outstanding performance in research and technology development and has secured a $100M grant from the U.S. Department of Energy (DOE). In addition, it is preparing to invest in mass production by securing an additional $25M grant from the Michigan state government. Through this collaboration, the two companies plan to begin commercial production of LFP in the United States starting in 2027.
The two companies expect that this collaboration will help automakers minimize tariff risks and effectively respond to the de-China trend. In particular, as the first company to produce LFP materials in the U.S., the company is already receiving a lot of attention from customers who want to use low- to mid-priced LFP batteries in the U.S.
L&F CFO Vice President Seung-Heon Ryu stated, “We confirmed Mitrachem’s technological prowess and LFP production site through an on-site inspection in the U.S. last January.” He added, “We will quickly and stably enter the U.S. market through L&F’s mass production experience, Mitrachem’s local procurement capabilities, and our U.S. customers and partners.”
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