South Korean battery materials producer L&F plans to invest 14.5 billion won ($10.8 million) in US-based Mitra Chem by acquiring Series B-1 preferred shares, the company announced Thursday.
Mitra Chem, founded in 2021 by Tesla alum Vivas Kumar, specializes in lithium iron phosphate (LFP) battery technology and aims to establish a domestic LFP supply chain in the United States. The startup has already secured $75 million in investments, including backing from General Motors.
The investment comes as battery manufacturers look to reduce dependence on Chinese suppliers following the 2022 Inflation Reduction Act, which incentivizes local production of critical materials.
L&F’s Chief Financial Officer Ryu Seung-heon indicated the company conducted an on-site inspection of Mitra Chem’s technology and production facilities in January. He cited the combination of L&F’s mass production experience with Mitra Chem’s local procurement capabilities as key advantages for entering the US market.
Mitra Chem has received substantial government support, including $100 million from the US Department of Energy and $25 million from Michigan. The companies plan to begin commercial LFP production in the US by 2027.
