Electroflow Promises 40% Cost Reduction for LFP Battery Material Production
Startup Electroflow has developed a revolutionary three-step process to produce lithium-iron-phosphate (LFP) battery materials at 40% less cost than Chinese producers. The company raised $10 million in seed funding to bring domestic EV battery material production to the U.S. market, potentially cutting battery costs by 20% while building supply chain independence.
The Problem: Chinese Dominance in LFP Production
Lithium-iron-phosphate (LFP) batteries have become the preferred choice for automakers seeking to reduce EV costs by thousands of dollars. However, 99% of LFP materials are currently produced in China, creating supply chain vulnerabilities for American manufacturers. Chinese LFP currently sells for around $4,000 per metric ton, about one-third the cost of U.S. production, making it difficult for domestic producers to compete even with tariffs and anti-China regulations in place.
Electroflow's Revolutionary Three-Step Process
Co-founders Eric McShane and Evan Gardner have developed a breakthrough technology that reduces LFP production from the traditional ten-step process to just three steps. Their electrochemical cell technology, inspired by lithium-ion batteries themselves, can extract lithium from underground brines and convert it directly to LFP material. The process uses anodes that absorb lithium ions in one direction and release them into carbonated water in another, producing lithium carbonate ready for battery manufacturing.
$10 Million Funding and Commercial Timeline
Electroflow recently raised $10 million in seed funding led by Union Square Ventures and Voyager, with participation from Fifty Years and Harpoon Ventures. The startup has already proven their technology works on salty brines from California geothermal sites. Their V1 system launching end of 2025 targets $5,000 per metric ton production costs, scaling to under $2,500 per metric ton at full production—potentially 40% less than current Chinese pricing.
Market Impact and Future Scaling
When fully commercialized, Electroflow's technology could reduce overall LFP battery costs by 20%, making EVs significantly more affordable for consumers. The company plans to package their systems in 20-foot shipping containers capable of producing 100 metric tons of LFP material annually. With millions of tons of lithium available in U.S. underground brines, the technology could enable domestic production sufficient for millions of EVs per year while requiring minimal electricity and water resources.