A First for North America: Homegrown 18650 LFP Cells

Ultion and First Phosphate unveil 18650 LFP cells made from North American materials and validated at commercial scale

5 Sep 2025

North America has produced its first commercial-grade lithium iron phosphate battery cells in the widely used 18650 format, using materials sourced entirely from the US and Canada, marking a milestone for a sector heavily reliant on overseas suppliers.

The cells were developed through a partnership between First Phosphate, which supplied high-purity phosphate and iron from Canada, and Ultion, which handled cell assembly and performance testing. Lithium was sourced from the US, while graphite came from Canada, according to the companies.

Test results showed the cells met target capacity levels and performed reliably under high-power conditions. The companies said the cells also demonstrated strong consistency between units and were validated at commercial scale. Production remains at an early or pilot stage rather than full mass manufacturing.

The development comes as battery makers and end users seek to reduce exposure to geopolitical risk and supply chain disruption. Lithium iron phosphate, or LFP, chemistry has gained market share in electric vehicles and stationary storage because of its lower cost and improved safety compared with nickel-rich alternatives, but production has been dominated by Asia.

Industry analysts said the demonstration could influence how North American companies plan future manufacturing and storage investments. Energy Storage News described the results as an unusual combination of credible performance data and transparent regional sourcing.

First Phosphate said the project showed the region was capable of competing in global battery markets, while Ultion said the cells demonstrated that a functioning North American LFP ecosystem was beginning to take shape.

The timing is notable as utilities, data centre operators and grid developers expand demand for stationary storage. Greater regional production could shorten delivery times and reduce dependence on long shipping routes, while supporting infrastructure build-out.

Significant challenges remain, including scaling cell manufacturing capacity and ensuring stable supplies of refined minerals at competitive cost. However, analysts said these barriers could be eased by rising public and private investment in domestic battery supply chains.

If production can be expanded, the companies involved argue that North America could play a larger role not only in deploying energy storage systems, but also in manufacturing them using locally sourced materials.