$11.3 billion pledged in US for EV battery projects

A chemical compound known as LFP is drawing eyes in the electric vehicle space.

Published: June 23, 2023 5:26pm

Six companies have pledged a combined $11.3 billion for lithium iron phosphate (LFP) manufacturing facilities in the United States, Reuters reported on Friday.

LFP is a chemical compound used in LFP batteries and is becoming increasingly popular in the electric vehicle (EV) market as a cheaper, better alternative to materials like nickel and cobalt. As such, several companies in the U.S. are pouring billions of dollars into LFP manufacturing for EV batteries.

Ford plans to open a Michigan LFP manufacturing facility in 2026, according to the outlet. The plant will cost $3.5 billion.

Gotion, whose China-based parent company is Gotion High Tech, says it will be proceeding with a $2.4 billion plant in Big Rapids, Michigan in 2025.

Concerns have been raised that Gotion’s parent company might be the same firm that met with the Taliban earlier this year to negotiate access to Afghanistan’s lithium deposits.

Other major LFP investors include LG Energy Solution ($1.7 billion), Freyr ($1.7 billion), Our Next Energy ($1.6 billion), and ICL Group ($400 million). The companies hail from South Korea, Norway, Michigan and Israel, respectively. EV makers Tesla and Rivian are reportedly also eyeing similar LFP investments.

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