Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnSquareMore
Electroflow claims it can manufacture LFP materials at a cost 40% lower than that of Chinese manufacturers

Electroflow claims it can manufacture LFP materials at a cost 40% lower than that of Chinese manufacturers

Bitget-RWA2025/10/01 13:25
By:Bitget-RWA

Lithium-iron-phosphate batteries have become a favorite in the industry due to their affordability and durability, helping to significantly reduce vehicle costs. However, U.S. car manufacturers now face challenges from tariffs and regulations targeting Chinese imports.

“We believe LFP is essential for widespread energy access. The challenge is that nearly all of it—about 99%—is produced in China,” said Eric McShane, Electroflow’s co-founder and CEO, in an interview with TechCrunch. “To compete, we need to completely change that dynamic.”

McShane and his partner, Evan Gardner, have created a process they believe can beat Chinese manufacturers on price by eliminating several production steps. If successful, their approach could lower LFP battery costs by up to 20% while establishing a domestic supply network.

“We examined the entire extraction process, from raw materials like rock or brine all the way to lithium chemicals. It’s about ten steps,” he explained. “That’s clearly not the most efficient method.”

A significant portion of the world’s lithium is sourced from underground brines. Once brought to the surface, these salty waters can be processed to retrieve lithium. U.S. brine reserves hold millions of tons of lithium, enough to support the production of millions of electric vehicles annually. The opportunity is so substantial that ExxonMobil is developing a site in Arkansas, but high refining costs make it hard to compete with Chinese suppliers.

Currently, LFP produced in China is priced at roughly $4,000 per metric ton, which is about a third of the U.S. production cost. McShane, however, anticipates that once Electroflow scales up, they’ll be able to manufacture LFP at least 40% cheaper than Chinese companies, all within the United States.

“With our first-generation system, by the end of this year, we’re targeting a production cost of around $5,000 per metric ton, and we plan to scale that down to under $2,500 per metric ton,” he said.

TechCrunch has learned that Electroflow recently secured a $10 million seed investment, led by Union Square Ventures and Voyager, with additional backing from Fifty Years and Harpoon Ventures.

Electroflow’s method reduces the process to just three steps to convert brine into LFP material. The company recently demonstrated the technology using brine sourced from a geothermal facility in California.

The foundation of Electroflow’s innovation is lithium-ion battery technology, which isn’t surprising since both McShane and Gardner have backgrounds in battery research. “We were intrigued by the idea of applying advanced battery technology to industries outside of batteries. Using battery tech in mining has proven to be very effective,” McShane noted.

The original spark for Electroflow came to Gardner during a Caltrain commute in the Bay Area. Watching passengers board and exit the train, he imagined them as ions moving through different sections of a device.

“He drew the idea on a scrap of paper and showed it to me,” McShane remembered. “I thought, wow, this could actually work.”

Electroflow’s main technology is a cell with anodes that, in one direction, absorb lithium ions from brine, and in the other, release them into water with carbonates. After both stages, the result is lithium carbonate, which can then be combined with phosphate, iron, and other chemicals to create LFP powder ready for battery manufacturing. If manufacturers need only lithium carbonate, Electroflow can halt the process at that stage and supply it directly.

The entire operation is powered by electricity, and producing 50 metric tons of lithium carbonate annually would consume about as much energy as a typical American household, according to McShane. Most of the water used in the carbonate phase can also be reused. “Our process doesn’t require a lot of electricity or water,” he added.

Once fully built, the system will fit inside a standard 20-foot shipping container and will be able to produce 100 metric tons of LFP material each year. 

“We’re planning to manufacture these electrochemical cell stacks and process large volumes of brine across the country,” McShane stated. He’s optimistic that Electroflow will be able to offer lower prices than Chinese competitors, even as the company moves into commercial-scale production in the coming years. 

“Unless Chinese producers completely overhaul their methods with a brand-new, innovative approach like ours, they won’t be able to match these costs,” he said.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

Bitcoin Leverage Liquidation and the Dangers of Excessive Exposure in Unstable Markets

- Bitcoin's leveraged derivatives markets face recurring liquidation crises, exemplified by the 2025 crash wiping $19B in a single day. - Historical events (2020, 2022, 2025) reveal systemic risks from overexposure, exacerbated by absent safeguards and retail investor herd behavior. - Behavioral biases like overconfidence and FOMO drive excessive leverage, while opaque market mechanisms amplify panic selling during downturns. - Institutional strategies (CORM model, hedging derivatives) and disciplined risk

Bitget-RWA2025/11/29 08:44
Bitcoin Leverage Liquidation and the Dangers of Excessive Exposure in Unstable Markets

The Untapped Potential for Infrastructure Investment in Upstate New York

- Upstate NY's Webster is transforming via $9.8M FAST NY grants, turning brownfields into a 300-acre industrial hub with upgraded infrastructure. - Xerox campus redevelopment and road projects boosted 250 jobs at fairlife® dairy, while industrial vacancy rates dropped to 2% vs. 6.5% national average. - Investors gain exposure through ETFs like IQRA/REAI or direct land acquisitions near power-ready sites, leveraging state-funded shovel-ready industrial corridors. - Governor Hochul's strategy positions Upsta

Bitget-RWA2025/11/29 08:44

Turkmenistan’s 2026 Cryptocurrency Strategy: Government-Led Diversification Under Strict Oversight

- Turkmenistan will implement a 2026 crypto law under President Berdimuhamedov, establishing licensing, AML rules, and state control over digital assets to diversify its gas-dependent economy. - The law mandates mining registration, classifies tokens as "backed/unbacked," and grants the central bank authority over distributed ledgers, prioritizing surveillance over privacy. - While aligning with regional crypto trends, the strict regulatory framework risks deterring private investment due to state oversigh

Bitget-RWA2025/11/29 08:44

Bitcoin’s Latest Price Drop: The Result of Shifting Macro Policies and Changing Institutional Attitudes

- Bitcoin fell 33% in late 2025 after hitting $126,080, driven by Fed policy shifts and institutional outflows. - Fed hesitation over rate cuts and delayed jobs data reduced December cut odds, triggering risk-off sentiment. - $3.79B ETF outflows and Solana migration highlighted Bitcoin's liquidity sensitivity amid regulatory uncertainty. - S&P 500 declines and $2B in futures liquidations amplified Bitcoin's November selloff amid macro-institutional convergence. - Long-term adoption by Harvard/Metaplanet an

Bitget-RWA2025/11/29 08:22
Bitcoin’s Latest Price Drop: The Result of Shifting Macro Policies and Changing Institutional Attitudes