Mitra Chem Raises $50M for US Battery Materials

Mitra Chem Secures $15.6 Million in Funding

Mitra Chem, a company focused on battery material innovation, has successfully raised $15.6 million as part of a larger $50 million funding round, as indicated in a recent regulatory filing reviewed by TechCrunch.

Advancing Lithium-Iron-Phosphate (LFP) Battery Technology

The startup is dedicated to the development of advanced materials designed to enhance the energy storage capacity of lithium-iron-phosphate (LFP) batteries. A growing number of automotive manufacturers are adopting LFP battery technology as a strategy to reduce the overall expense of electric vehicle (EV) battery packs.

Currently, the entire supply of LFP materials originates from outside of the United States, with a dominant share sourced from China.

TechCrunch attempted to obtain a statement from Mitra Chem regarding this funding, but a response was not immediately received.

Challenges and Opportunities in the EV Battery Market

This new funding arrives during a period of increased difficulty for battery startups. The growth rate of electric vehicle sales has not met the projections of some automakers and industry analysts.

Concurrently, both the Trump administration and Republican members of Congress have been actively challenging the expansion of EVs and the battery manufacturing sector. Proposed legislation in the House of Representatives suggests a potential termination of EV tax credits by 2025 or 2026, contingent on automaker sales volumes.

The Senate is yet to deliberate on this particular bill.

Previous Funding and Strategic Partnerships

Mitra Chem previously completed a $60 million Series B funding round in 2023. This round was spearheaded by GM, with participation from investors including In-Q-Tel and Social Capital.

In 2021, Social Capital, led by Chamath Palihapitiya, led the startup’s $20 million Series A funding round.

L&F Corporation, a South Korean battery materials company, is anticipated to participate in the current funding round, having already invested $10 million in March, according to reports from the Korean Economic Daily.

Department of Energy Grant

Last year, the company received a $100 million grant from the Department of Energy to facilitate the construction of a battery materials manufacturing facility in Michigan. Federal records confirm this award remains active, although the funds have not yet been disbursed.

This investment aims to establish domestic production of critical battery materials.