Can Dry Electrodes Close the EV Cost Gap?

LiCAP Technologies targets 50% cost cuts with a solvent-free LFP electrode process now at commercial scale

20 Mar 2026

A Sacramento startup is quietly reworking one of the most expensive steps in electric vehicle production. LiCAP Technologies has developed a solvent-free method for making lithium iron phosphate electrodes that strips a conventional five-step manufacturing sequence down to three, cutting out toxic chemicals and the energy-hungry drying ovens that standard wet slurry processes require.

The numbers are striking. LiCAP says its Activated Dry Electrode process reduces manufacturing energy use by roughly 40% and can bring total production costs down by as much as half. That matters because battery packs still account for around 40% of an EV's sticker price, making them the single biggest obstacle to mass-market adoption. US manufacturers are under real pressure to close the cost gap with Chinese LFP producers, and doing it without compromising performance is the hard part.

LiCAP is now licensing its process and associated equipment to automotive and battery OEMs for integration into commercial lines. Its Sacramento facility also supplies dry electrodes to partners running pilot programs. In August 2025, the company hit a notable production milestone, completing its first cathode roll exceeding 500 meters on a new 300 MWh line funded partly by the California Energy Commission.

The technology works across LFP, lithium manganese iron phosphate, and silicon-added graphite anodes, giving it wide applicability for domestic battery projects. There is a sustainability upside too. Because the process yields a freestanding electrode film rather than a laminated composite, manufacturing scrap can be recycled back into feedstock at nearly 100%, far better than conventional wet methods allow.

LiCAP grew out of Maxwell Technologies, whose dry electrode research drew a 2019 acquisition. A 2023 agreement with Dürr Systems opened a global channel to deliver the licensed process to OEMs worldwide. The company is also working with Nissan on mass-scale solid-state battery production, targeting commercial rollout in 2028.

Scaling to full gigafactory throughput is still an engineering challenge, and consistent output at high film speeds has yet to be proven at industrial volume. But as domestic LFP manufacturing grows and supply chain policy tightens, LiCAP's approach stands out as one of the most credible near-term tools US battery producers have.