[Exclusive] Surging Demand Spurs Inquiries... "This Company" to Build the First LFP Cathode Plant in the U.S.

L&F to Build 15,000-Ton Plant in Muskegon
Construction Begins This Year, Mass Production Set for 2028
Riding the Wave of "China-Free Supply Chains" in the U.S.
Aiming to Lead the Mid- to Low-Priced Battery and ESS Markets

L&F, a secondary battery materials company, is partnering with American cathode materials company Mitra Chem to establish its first North American LFP (lithium iron phosphate) cathode material plant. While LG Chem is currently building NCM (nickel cobalt manganese) cathode material production facilities in the United States, there are still no LFP cathode material facilities-known for their relatively lower price-in the country. For the local company joining forces with L&F, this will be the first domestic production base for cathode materials. The plan is to overcome the rapidly rising tariff barriers against China and take the lead in the U.S. mid- to low-priced battery and energy storage system (ESS) markets.

In front of L&F Daegu Guji 3 Factory. L&F

According to the battery industry on January 15, L&F plans to break ground this year on a 15,000-ton ESS LFP production line in Muskegon, Michigan, aiming to begin mass production by 2028. L&F’s decision to produce LFP cathode materials in the United States was prompted by the sharp increase in tariffs on Chinese-made ESS, which rose from 30.9% to 48.4% starting this year. For U.S. secondary battery companies, securing a “China-free supply chain” has become increasingly important.

In particular, as demand for ESS surges due to the expansion of artificial intelligence (AI) data centers, global companies seeking a stable supply of LFP battery materials are making numerous inquiries. While specific customers have not yet been finalized, it is expected that priority will be given to supplying domestic battery cell manufacturers that have already entered the U.S. market.

Until the North American plant is completed, L&F Plus’s 30,000-ton plant in Daegu will first produce LFP cathode materials to supply customers seeking a China-free supply chain. The target for full-scale operation of this plant is the second or third quarter of this year.

Mitra Chem, L&F’s American partner, was founded in 2021 by former Tesla employee Vivas Kumar and has attracted major investments from companies such as General Motors (GM). Last year, L&F invested approximately 14.5 billion won to acquire a stake in the company. Mitra Chem is preparing for mass production by securing a federal grant of 100 million dollars (about 146.65 billion won) from the U.S. Department of Energy (DOE) and an additional grant of up to 25 million dollars from the State of Michigan.

An industry insider said, “If L&F directly produces LFP battery materials in the United States, it will be able to comply with the Inflation Reduction Act (IRA) requirements demanded by North American customers and minimize tariff risks. L&F will become a first mover in the U.S. LFP value chain.”