Mitra Chem is scoring $50M to make cheaper, local battery materials

Battery material startup Mitra Chem has recently secured $15.6 million in funding as part of a larger $50 million round, as revealed in a regulatory filing obtained by TechCrunch. The company is focused on developing materials to enhance the energy storage capacity of lithium-iron-phosphate (LFP) batteries. This move comes as automakers are increasingly looking into LFP as a cost-effective solution for electric vehicle battery packs, a crucial component that significantly impacts a car’s overall cost.

At present, all LFP material is sourced from overseas, predominantly from China. Despite reaching out to Mitra Chem for comments, TechCrunch has yet to receive a response. The timing of this new funding round coincides with a challenging period for battery startups, as the growth of electric vehicle sales has not met some industry expectations. Additionally, the political landscape poses further challenges, with the Trump administration and Republican lawmakers targeting EVs and battery manufacturers.

Mitra Chem had previously completed a $60 million Series B funding round in 2023, led by GM with participation from In-Q-Tel, Social Capital, and other investors. The startup’s $20 million Series A in 2021 was spearheaded by Chamath Palihapitiya’s Social Capital. Reports suggest that South Korean battery materials company L&F Corporation is likely to contribute to the new round, following a $10 million investment made in March according to the Korean Economic Daily.

Notably, the Department of Energy granted Mitra Chem $100 million last year to establish a battery materials plant in Michigan, although the funds have not yet been disbursed. In other news, prominent figures in the tech and venture capital industry are set to participate in the Disrupt 2025 agenda.