L&F Co., a South Korean electric vehicle battery materials supplier to Tesla Inc., plans to invest $10 million in Mitra Chem, a US lithium-ion battery ingredients maker, to manufacture products in the country amid President Donald Trump’s “Made in America” push.
L&F said on Thursday it decided to buy 1.3 million preferred shares of Mitra Chem for 14.5 billion won ($10 million) to acquire a 3.3% stake in the iron-based cathode materials producer.
The South Korean company aims to use Mitra Chem as a base to manufacture lithium iron phosphate (LFP), a popular, low-cost cathode material for lithium-ion cells, in the US. The two firms plan to begin mass production of LFP in 2027 through cooperation.
“We checked Mitra Chem’s technology and LFP production site through due diligence in the US in January,” said L&F Chief Financial Officer Ryu Seung-Heon. “We plan to enter the US market quickly and stably with L&F’s mass production experience, Mitra Chem’s local sourcing capabilities and our customers and partners there.”
MADE IN AMERICA
Trump urged global businesses to manufacture their products in the US while warning them if they chose to produce their goods elsewhere, they would have to pay tariffs to export them to America.
Mitra Chem said it secured $100 million from the US Department of Energy and $25 million from the State of Michigan in September last year.
The company founded by Vivas Kumar, a former Tesla senior manager is preparing a battery material plant in Muskegon, Michigan, the first mass production facility for lithium iron phosphate cathodes in North America, with the funding.
In 2023, General Motors led a $60 million series B financing round in Mitra Chem.
By Da Eun Choi
max@hankyung.com
Jongwoo Cheon edited this article.
