Mitra Chem Targets $50M Funding to Advance Cheaper, Domestic Battery Materials

Mitra Chem, a battery material startup, is seeking to raise $50 million, having already secured $15.6 million in a recent funding round, according to a regulatory filing. This funding aims to bolster their efforts in developing more cost-effective and domestically produced battery materials.

The company focuses on enhancing lithium-iron-phosphate (LFP) batteries, striving to increase their energy storage capacity. LFP batteries are gaining traction among automakers as a means to reduce the overall cost of electric vehicle (EV) battery packs, a significant component in EV manufacturing.

Currently, the LFP material supply chain is dominated by foreign entities, primarily China. Mitra Chem is aiming to establish a U.S.-based alternative, challenging the existing reliance on international sources, as highlighted in a previous TechCrunch report.

This new funding initiative occurs during a period of market uncertainty, where EV sales have not met the initially projected growth rates. Simultaneously, proposed legislative changes, such as the potential sunset of EV tax credits, add further complexity to the battery manufacturing landscape.

Mitra Chem’s previous funding includes a $60 million Series B round in 2023, led by GM, with participation from In-Q-Tel and Social Capital. Social Capital also led their $20 million Series A in 2021. Additionally, L&F Corporation, a South Korean battery materials company, reportedly invested $10 million in March, according to the Korean Economic Daily.

Furthermore, Mitra Chem received a $100 million grant from the Department of Energy last year to facilitate the construction of a battery materials plant in Michigan. While the award remains on the books, the funds have not yet been disbursed.