L&F announced on the 20th that it has decided to make an equity investment of about 14.5 billion won in its local partner Mitra Chem to prepare for LFP (lithium iron phosphate) cathode material production in the United States. The investment will be conducted through the acquisition of preferred shares in Mitra Chem's Series B-1 round.
Mitra Chem was established in 2021 by Vivas Kumer, a former employee at Tesla, with the aim of building an LFP supply chain in the U.S. and producing products that comply with the Inflation Reduction Act (IRA) regulations. By 2023, it has attracted $75 million (about 10.92 billion won) from investors, including General Motors.
Mitra Chem is currently testing several tons of LFP products from its customers. It is also developing next-generation materials such as LFMP and precursor-free LFP cathode materials. In particular, it is significantly shortening development periods and quickly developing large quantities of products through its unique acceleration platform that applies its own AI and automation in R&D.
L&F plans to strengthen its strategic collaboration with Mitra Chem through this investment and use it as a foothold for local LFP production in the U.S. Mitra Chem has already secured $100 million (about 154.7 billion won) in subsidies from the U.S. Department of Energy (DOE). It is also preparing investments for mass production, having obtained additional subsidies amounting to $25 million (about 36.4 billion won) from the Michigan state government. The two companies plan to begin commercial production of LFP in the U.S. starting in 2027 through cooperation.
L&F Chief Financial Officer (CFO) Ryu Seung-hyun noted, "In January, through local due diligence in the U.S., we confirmed Mitra Chem's technological capabilities and LFP production site," and added, "We will enter the U.S. market quickly and stably through L&F's mass production experience and Mitra Chem's local procurement capabilities, as well as our customers and partners in the U.S.."