Mitra Chem Challenges China's Battery Material Dominance

Mitra Future Technologies Secures $20 Million in Series A Funding

Mitra Future Technologies, operating as Mitra Chem, has successfully completed a $20 million Series A funding round. This investment was spearheaded by Social Capital Holdings, the venture capital firm led by billionaire Chamath Palihapitiya.

The company’s primary objective is to strengthen the North American battery supply chain. This is particularly crucial given the current dominance of China in this sector, and will be achieved through the production of an iron-based cathode specifically for applications outside of China.

Investor Participation and Board Appointments

Alongside Social Capital Holdings, the funding round saw participation from Taiwanese billionaire Richard Tsai, Fontinalis Partners, Integrated Energy Materials, and Earthshot Ventures.

Furthermore, Chamath Palihapitiya and Will Drewery have joined Mitra Chem’s board of directors. Drewery brings significant expertise, having previously led global supply management at Tesla and currently serving as VP of supply chain at Astra.

The Rise of Iron-Based Batteries

Iron-based battery chemistries have historically been largely confined to China. Nickel-based batteries have been favored in Western markets, largely due to patent protections granting Chinese companies exclusive manufacturing rights.

However, with these patents nearing expiration, iron-based batteries are gaining traction among automakers. Tesla, for example, has recently announced plans to incorporate this more affordable battery chemistry as standard in all its global Model 3 and Model Y vehicles.

Addressing a Critical Supply Chain Vulnerability

Despite the growing interest in iron-based chemistries, China’s continued dominance presents a significant challenge. Vivas Kumar, co-founder and CEO of Mitra Chem, described this as a “huge Achilles’ heel” in a recent interview with TechCrunch.

Mitra Chem intends to address this gap by establishing domestic manufacturing capabilities for iron-based cathodes, intended for use in batteries not produced in China.

Beyond Geopolitics: Meeting Market Demand

Kumar, formerly part of Tesla’s battery supply chain team, emphasizes that the decision to focus on iron is driven not only by geopolitical considerations but also by increasing market demand for EV batteries.

He explained that as automakers expand their EV offerings across various models and price points, a more differentiated approach to cathode solutions becomes essential. A “one-size-fits-all” approach is no longer sufficient.

Establishing a vertically integrated supply chain within the United States also makes strategic sense, particularly with North American OEMs like General Motors and Ford investing in domestic battery cell factories.

Accelerated Production Through Machine Learning

Mitra Chem is currently constructing a laboratory in Mountain View, California. This facility is projected to achieve pre-pilot production capacity by mid-2022.

The company will leverage a machine learning process, developed by co-founder and Stanford University materials science professor Will Chueh, to expedite the transition from lab-scale development to full-scale production, surpassing the speed of its competitors.

China’s Dominance in the Battery Industry

According to industry intelligence firm Benchmark Mineral Intelligence, China currently holds the leading position in the battery industry across all stages of the supply chain.

This includes the refining of raw materials, the manufacturing of key components, and the production of finished lithium-ion battery cells.

China accounts for approximately 66% of global production of critical components like cathodes and anodes, which Benchmark Mineral Intelligence identifies as “the core building blocks of the lithium-ion battery.”

Furthermore, China is the planned location for a substantial majority of new large-scale battery factories, with 148 out of 200 facilities scheduled for completion by 2030 situated within the country.

A Parallel to the US Oil Dependency

Kumar draws a parallel between the current battery supply chain situation and the United States’ historical reliance on foreign oil.

“For 75 years, the United States was a net importer of oil, and that energy disadvantage had significant consequences for American consumers and our global standing,” he stated. “We are witnessing a similar scenario unfolding now.”

He warned that a lack of domestic cathode production capacity – currently at zero in North America – will leave the region vulnerable, mirroring the past energy dependency.