[Exclusive] L&F to Build 15,000-Ton LFP Cathode Materials Plant, the First of Its Kind in the U.S.

15,000-Ton Facility Planned for Muskegon
Construction to Begin This Year, Mass Production Targeted 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 U.S. cathode materials firm Mitra Chem to establish North America's first LFP (lithium iron phosphate) cathode materials plant. While LG Chem is currently building NCM (nickel, cobalt, manganese) cathode production facilities in the United States, there are still no LFP cathode material facilities-known for their relatively lower cost-in the country. For Mitra Chem, L&F's local partner, this will become the first domestic production base for cathode materials. Their strategy is to overcome the rapidly rising tariff barriers against China and gain an early foothold 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. The catalyst for L&F's decision to produce LFP cathode materials in the U.S. was the significant increase in tariffs on Chinese-made ESS, which jumped from 30.9% to 48.4% this year. For U.S.-based secondary battery companies, securing a "China-free supply chain" has become increasingly important.

In particular, the explosive growth in ESS demand driven by the expansion of artificial intelligence (AI) data centers has led to a surge in inquiries from global companies seeking a stable supply of LFP battery materials. Although specific customers have not yet been confirmed, it is expected that the initial supply will go to Korean battery cell manufacturers operating locally.

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

Mitra Chem, L&F's U.S. 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 large-scale production, having secured a $100 million (about 146.65 billion won) grant from the U.S. Department of Energy (DOE) and an additional $25 million subsidy from the state government of Michigan.

An industry insider commented, "If L&F produces LFP battery materials locally in the U.S., it will allow North American clients to comply with the Inflation Reduction Act (IRA) requirements and minimize tariff risks. L&F is set to become the first mover in the U.S. LFP value chain."

However, an L&F representative stated, "We are reviewing and discussing various options for entering the North American market, but no specific location, scale, or timeline has been decided yet."