U.S. startup Electroflow is developing a process to produce lithium-iron-phosphate (LFP) battery material at lower costs, aiming to reduce dependence on Chinese suppliers, the company said.
The company’s co-founder and CEO, Eric McShane, told TechCrunch that while LFP batteries are “literally 99% made in China,” Electroflow’s approach could reduce production costs by as much as 20% while establishing a domestic supply chain. “If we want to have a chance of competing, we’ve got to flip that script,” he said.
See also: Siemens Mobility Breaks Ground on Rail Battery System Plant in Bavaria
Electroflow’s technology transforms lithium from brine into LFP material in three steps, compared with roughly ten steps in conventional production. The startup recently demonstrated the process on brines extracted from a geothermal site in California. The system runs entirely on electricity and uses minimal water, producing lithium carbonate ready to be converted into LFP powder.
The company expects early production by the end of this year to cost roughly $5,000 per metric ton, with full-scale systems capable of producing 100 metric tons per year at less than $2,500 per ton. The technology can also produce lithium carbonate for other battery chemistries.
See also: EU-Backed RESiLiTE Project Targets Lighter, Safer and More Efficient EV Batteries
Electroflow recently raised a $10 million seed round led by Union Square Ventures and Voyager, with participation from Fifty Years and Harpoon Ventures. McShane said the funding will support scaling the technology and establishing a U.S.-based supply chain.
Much of the world’s lithium comes from underground brines, and current U.S. refining costs make it difficult to compete with Chinese suppliers, where LFP material sells for about $4,000 per metric ton. McShane said Electroflow aims to undercut Chinese production even at commercial scale.
