Mitra Chem is raising $50 million for its affordable domestic battery materials
Mitra Chem, a startup focused on battery materials, has successfully secured $15.6 million as part of its planned $50 million funding round, according to a regulatory filing reviewed by TechCrunch. The company is working on materials designed to enhance the energy storage capabilities of lithium-iron-phosphate (LFP) batteries. Many automakers are increasingly adopting LFP technology to reduce costs associated with electric vehicle (EV) battery packs, which often represent a significant portion of a vehicle’s overall price. Currently, all LFP materials are sourced from outside the United States, with the vast majority coming from China.
TechCrunch reached out to Mitra Chem for comments but did not receive an immediate response. This new funding round arrives during a challenging period for battery startups. Sales of electric vehicles have not increased at the pace that some automakers and analysts had anticipated. Furthermore, there has been significant pushback from various political groups against EVs and battery manufacturers. For instance, the House version of a reconciliation bill proposes to phase out EV tax credits by 2025 or 2026, contingent on the number of EVs sold by automakers. The Senate has yet to discuss the bill.
Previously, Mitra Chem raised $60 million in a Series B funding round that concluded in 2023, which was led by General Motors, with participation from In-Q-Tel, Social Capital, and others. In 2021, Chamath Palihapitiya’s Social Capital led the startup’s $20 million Series A funding round. Reports from the Korean Economic Daily suggest that South Korean battery materials company L&F Corporation may also participate in this new funding round, having invested $10 million in March. Last year, the company received a $100 million grant from the Department of Energy to establish a battery materials plant in Michigan; however, federal records indicate that this grant has yet to be disbursed.
For more insights and strategies, join industry leaders and investors at the upcoming TechCrunch event in Boston on July 15.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/mitra-chem-secures-50-million-funding-to-develop-affordable-domestic-battery-materials/
