As electric cars take off, makers pledge $11.3 billion for US lithium iron phosphate.

28 Jun 2023

Interest and investment in lithium iron phosphate (LFP) battery cells and materials, used to power electric vehicles, continue to climb in the United States. LFP is a lower-cost competitor to nickel cobalt manganese cells.Six companies have committed more than $11 billion in future LFP manufacturing facilities in the U.S., with others, including Tesla (TSLA.O) and Rivian (RIVN.O), reportedly considering similar investments.

Here is a look at some of the announced LFP projects.

FORD

Ford Motor (F.N) is planning to open a $3.5 billion LFP manufacturing plant in 2026 in Marshall, Michigan, using technology licensed from China’s CATL (300750.SZ).

LG ENERGY SOLUTION

South Korea’s LGES (373220.KS) plans to add LFP production later this year to its Holland, Michigan, battery cell plant as part of a $1.7 billion expansion.

GOTION

Chinese battery maker Gotion (002074.SZ) has announced a $2.4 billion project to make battery materials in Big Rapids, Michigan, starting in 2025.

FREYR

Norwegian battery startup Freyr (7XN.F) expects to open a $1.7 billion battery plant outside Atlanta, using technology from Aleees and 24M. It has not specified a start date.