General Motors (NYSE:GM) announced Wednesday that the American automaker will be investing in Silicon Valley startup, Mitra Chem with an aim to help the new company speed the development of a more affordable battery chemistry for use in electric vehicles.
GM is set to spearhead a $60 million investment in Mitra Chem. The startup specializes in harnessing artificial intelligence to expedite the creation of lithium-ion battery components. Through this collaboration, Mitra Chem will play a pivotal role in assisting GM in the advancement of cutting-edge iron-based cathode active materials, notably lithium manganese iron phosphate (LMFP). These innovative materials hold the potential to be integrated into select models of GM's future Ultium batteries, anticipated to debut after 2025.
The new funding round for Mitra Chem “is a strategic investment that will further help reinforce GM’s efforts in EV batteries (and) accelerate our work on affordable battery chemistries like LMFP,” said GM’s VP of tech acceleration and commercialization, Gil Golan.
GM's collaboration with Mitra Chem to establish a domestic supply chain for LFP batteries and advanced materials is significantly influenced by the U.S. Inflation Reduction Act. According to Golan, the IRA “is one of the main drivers” in GM’s efforts with Mitra Chem, as the IRA offers incentives for the procurement of battery materials, components, cells, and packs that originate from North American sources.
Shares of GM are down 1.05% in early trading Wednesday.