Nascent Materials Launches Innovative Process to Enhance and Reduce Costs of LFP Batteries

Nascent Materials Emerges from Stealth to Enhance LFP Batteries at Lower Costs
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Lithium-ion batteries have seen a remarkable 75% decrease in costs over the past decade, a feat achieved through numerous incremental advancements rather than a single major breakthrough. Chaitanya Sharma, the founder of the stealth startup Nascent Materials, understands this evolution well. Having spent over two years at Tesla’s Gigafactory in Nevada and another two years leading iM3NY, a lithium-ion manufacturer in New York, Sharma is now focused on innovating the processing of cathode materials for lithium-ion batteries—one of those vital improvements that could further reduce costs.

Nascent’s innovative process has the potential to enhance the energy density of the cathode by up to 12% while reducing production costs by 30%. “In my mind, developing a new exotic chemistry is not really the direction I want to pursue,” Sharma explained to TechCrunch. “I prefer to find new methods for material production.”

This manufacturing-centric approach has garnered early investment, with Nascent recently raising $2.3 million in a seed round led by SOSV. The New Jersey Innovation Evergreen Fund and UM6P Ventures also participated in this funding round. The startup initially aims to produce lithium-ion-phosphate (LFP) and lithium-manganese-iron-phosphate (LMFP), two types of cathode materials that have gained traction among automotive manufacturers and data center operators. Recent advancements have brought LFP energy density closer to that of higher-end nickel- and cobalt-based chemistries, all while maintaining significantly lower costs. However, there remains room for further enhancement.

Sharma noted that achieving consistent quality in materials was a challenge during his time at iM3NY, which ultimately contributed to the company’s Chapter 11 bankruptcy filing in January. The issue largely stems from supply chain disparities. Large players, like Tesla’s Gigafactory—operated in partnership with Panasonic—tend to receive more uniform materials. “Smaller manufacturers, which also invest $100 million to $200 million in their factories, often end up with inconsistent materials,” Sharma remarked.

“This was the driving force behind my decision to launch Nascent Materials—I want to ensure that all customers receive consistent materials,” he added. Cathode materials typically come in powder form, and while they may appear uniform, slight variations in grain size can significantly affect performance. Sharma indicated that Nascent has developed a process that utilizes less energy while producing particles that are more consistently sized and shaped, allowing for tighter packing and improved energy density.

The process also presents additional supply chain benefits, as it can utilize lower-purity raw materials, thus expanding access to domestic supplies. While Nascent currently focuses on LFP and LMFP, Sharma mentioned plans to explore other chemistries in the future, including nickel-manganese-cobalt (NMC) and lithium-manganese-rich (LMR), a relatively new chemistry that General Motors plans to introduce in 2028. This focus on domestic sourcing addresses a critical industry dependency, as the majority of cathode materials are currently produced in China. “How can I avoid relying on China?” Sharma questioned. “That’s our main goal—streamlining the supply chain to utilize local raw materials, which ultimately drives down costs.”