Image Source: Pixabay

General Motors Co (NYSE: GM) is investing $60 million in a California-based startup Mitra Chem to expand its footprint in EV batteries.

Mitra Chem is working on affordable EV batteries

Mitra Chem is committed to developing a variant of the widely known LFP battery that delivers better power density without losing its cost advantage.

The EV startup is using artificial intelligence to swiftly analyse new battery chemistries in its hunt for the right formula. Vivas Kumar – the Chief Executive of Mitra Chem said today in a press release:

GM’s investment will also fuel our mission to develop, deploy, and commercialise U.S. made, iron-based cathode materials that can power EVs, grid-scale electrified energy storage and beyond.

The stock market news arrives shortly after General Motors reported a strong second-quarter and raised its guidance for the full year (read more).  

GM will eventually be using Mitra Chem batteries

Specifics of the investment the automaker has made in Mitra Chem are yet to be disclosed.

But Gil Golan – the Vice President of General Motors did confirm that the company’s electric vehicles be using Mitra Chem batteries by the end of this decade provided that the California-based startup succeeds in making an affordable battery as planned. He added:

This is a strategic investment that will accelerate our work on affordable battery chemistries like LMFP and support our efforts to build a U.S. focused battery supply chain.

Earlier this year, General Motors revealed plans of building its fourth battery facility in collaboration with Samsung SDI in Indiana. The automotive stock is currently trading below the price at which it started this year.  

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