electroflow promises to make lfp material for 40% less than chinese producers

The Rise of Lithium Iron Phosphate Batteries and a New Domestic Supply Chain

The automotive industry is increasingly focused on lithium-iron-phosphate (LFP) cells, a cost-effective and robust battery chemistry capable of significantly reducing vehicle prices. However, current market dynamics, including tariffs and regulations targeting China, present challenges for American vehicle manufacturers.

Addressing the China Dependency

“LFP is considered a crucial element for achieving energy independence. The primary obstacle lies in the fact that approximately 99% of its production currently occurs in China,” explains Eric McShane, co-founder and CEO of Electroflow, in a statement to TechCrunch. “To establish a competitive position, a shift in this landscape is essential.”

Electroflow's Innovative Approach

McShane, alongside co-founder Evan Gardner, has pioneered a technology designed to lower production costs and challenge the dominance of Chinese manufacturers. Their aim is to streamline the manufacturing process, potentially reducing LFP battery costs by as much as 20% while simultaneously establishing a domestic supply chain.

“Our analysis of the entire process, from raw material extraction – whether from rock or saltwater – to the creation of lithium chemicals, revealed an unnecessarily complex ten-step procedure,” McShane stated. “We recognized the need for a more efficient methodology.”

Unlocking Lithium Resources in the United States

A substantial portion of the world’s lithium reserves is found in underground saltwater brines. These brines, when brought to the surface, can be processed to extract valuable lithium. The United States possesses vast brine reserves, sufficient for producing millions of electric vehicles annually. ExxonMobil is currently developing a lithium extraction site in Arkansas, though cost-effective refining remains a significant hurdle.

Currently, LFP sourced from China is priced around $4,000 per metric ton, considerably lower than the approximately one-third higher cost in the United States. Electroflow anticipates producing LFP at a cost at least 40% below that of Chinese competitors, all within the U.S.

Production Cost Projections

“Our initial V1 system, slated for completion by the end of the year, targets a production cost of $5,000 per metric ton. We plan to scale operations to achieve a cost of less than $2,500 per metric ton,” McShane projected.

Securing Seed Funding

Electroflow has recently secured $10 million in seed funding, as exclusively reported by TechCrunch. The investment round was spearheaded by Union Square Ventures and Voyager, with additional participation from Fifty Years and Harpoon Ventures.

A Simplified Production Process

The technology developed by Electroflow streamlines the conversion of saltwater into LFP material, requiring only three steps. The startup has successfully demonstrated the technology’s efficacy using brines extracted from a geothermal site in California.

Leveraging Battery Technology for Mining Innovation

Electroflow’s technology builds upon the principles of lithium-ion batteries, a natural progression given the backgrounds of McShane and Gardner, both of whom have extensive experience in battery research and materials science. “We were intrigued by the potential of applying advanced technologies, such as battery technology, to other industries. Applying battery tech to mining has proven to be exceptionally promising,” McShane explained.

The Inspiration Behind Electroflow

The core concept for Electroflow originated with Gardner during his commute on Caltrain in the Bay Area. Observing passengers boarding and disembarking trains, he drew a parallel to ions moving between chambers within a device.

“He sketched out his idea and shared it with me,” McShane recalled. “I immediately recognized its potential.”

The Electrochemical Cell Technology

Electroflow’s key innovation lies in a specialized cell featuring anodes that selectively absorb lithium ions from brines in one direction and release them into carbonate-containing water in another. This process yields lithium carbonate, which can then be reacted with phosphate, iron, and other materials to create LFP powder ready for battery manufacturing. Alternatively, the process can be halted to produce lithium carbonate for other applications.

Sustainability and Efficiency

The system operates entirely on electricity, with a 50 metric ton annual lithium carbonate production requiring energy equivalent to that used by a typical U.S. household. Furthermore, a significant portion of the water used in the carbonate stage can be recycled. “Our system minimizes both electricity and water consumption,” McShane emphasized.

Scalability and Future Outlook

The full-scale system will be housed within a 20-foot shipping container, capable of producing 100 metric tons of LFP material annually.

“We will deploy these electrochemical cell stacks to efficiently process brines across the United States,” McShane stated, expressing confidence in the company’s ability to undercut Chinese producers even as they reach commercial production.

“Unless Chinese methods evolve towards a completely new, clean-slate approach similar to ours, they will struggle to achieve further cost reductions,” he concluded.