Mitra Chem is raising $50M for its cheaper, domestic battery materials

Mitra Chem, a startup focused on battery materials, has successfully garnered $15.6 million as part of a larger funding goal of $50 million, as revealed in a regulatory filing accessed by TechCrunch. The company is pioneering the development of lithium-iron-phosphate (LFP) battery components, aimed at enhancing energy storage capabilities. As automakers increasingly adopt LFP technology to reduce costs associated with electric vehicle (EV) batteries—often one of the most expensive elements of electric cars—this funding comes at a pivotal moment. Currently, the United States relies entirely on imports for LFP materials, with a significant portion sourced from China. TechCrunch attempted to reach out to Mitra Chem for further details but did not receive a prompt response. The startup's fundraising efforts come amid a challenging landscape for battery companies. The anticipated growth in EV sales has not materialized at the levels expected by many automakers and industry analysts. Additionally, there is rising political pressure against EVs and battery producers, with recent proposals from the Trump administration and Congressional Republicans threatening to phase out EV tax credits by 2025 or 2026, contingent on sales figures. Previously, Mitra Chem raised $60 million in a Series B funding round in 2023, led by General Motors, with participation from In-Q-Tel, Social Capital, and others. Notably, Chamath Palihapitiya’s Social Capital also spearheaded the startup’s $20 million Series A round in 2021. Recent reports suggest that South Korean battery materials firm L&F Corporation may join this funding round, having invested $10 million in March. Additionally, Mitra Chem received a $100 million grant from the Department of Energy last year to establish a battery materials facility in Michigan, although this funding has yet to be disbursed.