Stock Market

Electric Car Boom: Manufacturers Commit $14.3 Billion to US Lithium Iron Phosphate Production

Interest and investment in lithium iron phosphate (LFP) battery cells and materials, which are utilized to power electric vehicles, are experiencing a remarkable surge within the United States. LFP presents itself as a cost-effective alternative to nickel cobalt manganese cells, prompting a growing number of companies to direct their attention and capital towards this technology.

In an impressive display of commitment, seven companies have pledged over $14 billion towards the establishment of future LFP manufacturing facilities in the U.S. Meanwhile, industry titans such as Tesla (NASDAQ:TSLA) and Rivian are reportedly contemplating similar investments, further highlighting the escalating enthusiasm surrounding LFP.

Now, let’s delve into some of the notable LFP projects that have been announced:


In a forward-thinking move, Ford Motor (NYSE:F) is preparing to inaugurate a $3.5 billion LFP manufacturing plant in Marshall, Michigan, set to commence operations in 2026. Ford will leverage technology licensed from China’s CATL to facilitate this venture.


General Motors (NYSE:GM), in collaboration with partner Samsung (KS:005930) SDI, has unveiled plans for a $3 billion LFP plant in Fort Wayne, Indiana. This joint effort is expected to come to fruition in 2026, bolstering the domestic LFP production landscape.


South Korea’s LG Energy Solution (LGES) has set its sights on expanding its battery cell plant in Holland, Michigan, with the addition of LFP production. As part of a significant $1.7 billion expansion, LGES aims to incorporate LFP production capabilities into its operations later this year.


Gotion, a prominent Chinese battery manufacturer, has made a resounding declaration with its announcement of a $2.4 billion project centered around battery materials production in Big Rapids, Michigan. This ambitious endeavor is slated to commence in 2025, solidifying Gotion’s footprint in the American market.


Norwegian battery startup Freyr has its sights set on establishing a $1.7 billion battery plant just outside Atlanta. Collaborating with Aleees and 24M for cutting-edge technology, Freyr anticipates the commencement of this venture. Although an official start date has yet to be specified, the project holds immense promise.


Michigan-based startup ONE is poised to make its mark in the industry by initiating pilot production of battery cells. With a $1.6 billion plant in Van Buren Township, ONE’s ambitious vision is set to take shape later this year, signaling their commitment to the advancement of battery technology.


Israel’s ICL Group is making notable strides by constructing a $400 million battery materials plant near St. Louis, Missouri. Slated for completion in 2024, this facility will play a crucial role in supporting the growing demand for battery materials within the United States.

These impressive investments and projects underscore the transformative potential of LFP technology in the electric vehicle sector. As the pursuit of sustainable transportation gains momentum, the United States is poised to emerge as a key player in the production and innovation of lithium iron phosphate batteries.

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