L&F Mitra Chem LFP Investment Targets U.S. Battery Supply Chain Strengthening

Mitra Chem

Korean cathode maker backs U.S. startup for local LFP material production

L&F invests $9.9mn in Mitra Chem for LFP production

L&F Mitra Chem LFP investment marks a strategic move to support domestic lithium iron phosphate (LFP) cathode production in the U.S. L&F invested ₩14.5 billion (approximately $9.9 million) in Mitra Chem through a preferred stock agreement to build collaboration. Mitra Chem develops iron-based cathodes for electric vehicles, energy storage, and military battery systems. As a result, the partnership strengthens U.S. battery material independence amid rising geopolitical and policy-driven localization needs.

L&F, a key Tesla supplier of high-nickel cathodes, is expanding its portfolio amid shifting industry dynamics. Notably, Mitra Chem’s CEO Vivas Kumar is a former Tesla executive, further deepening strategic alignment.

Weaker cathode demand pressures L&F’s 2024 earnings

Despite the new U.S. investment, L&F reported a net loss of ₩365 billion in 2024.

This widened from ₩194 billion in 2023, driven by softer-than-expected demand in the global battery market.

However, the deal with Mitra Chem signals L&F’s long-term pivot toward the fast-growing LFP segment. LFP technology is gaining traction globally due to its affordability, thermal stability, and use in stationary storage solutions.

The Metalnomist Commentary

L&F Mitra Chem LFP investment may look modest in size, but strategically it is critical. By aligning with a U.S.-based cathode startup led by Tesla alumni, L&F positions itself for a diversified and resilient future. As LFP gains global market share, this move could help offset volatility in nickel-based cathode demand.