Domestic LFP Batteries Gain Momentum in the US

Ultion is scaling US-made LFP cells as buyers look for steadier supply and fewer import risks

16 Jul 2025

A renewed wave of investment is giving momentum to the US battery sector as interest grows in locally produced lithium iron phosphate, or LFP, cells. Ultion Technologies has become an early mover in this shift, outlining plans to expand domestic production as customers look to reduce exposure to imports.

Ultion has secured funding from Torus and Nevada’s Battle Born Venture programme to scale up its US-based LFP manufacturing. The company has not disclosed the size of the investment, but said it intends to lift output by about five times from a small base. Its Nevada facility currently employs roughly 15 people, underscoring the early stage of its operations.

The expansion reflects broader efforts to reduce reliance on overseas supply, particularly from Asia, which has long dominated the LFP market. Torus executives described the investment as a practical step towards building a more resilient domestic supply of batteries for long-duration energy storage.

Interest in LFP technology has risen in recent years as buyers are drawn to its safety profile, long cycle life and relatively stable costs. In the US, however, limited domestic manufacturing has led to long lead times and supply uncertainty, pushing developers and utilities to seek more predictable options.

Ultion’s plan aims to address part of that gap by offering cells produced in the US, even as the wider market remains in transition. Industry analysts say the move aligns with early-stage plans by larger groups such as LG Energy Solution and Samsung SDI to establish LFP production lines in the US, though most of those projects are still several years from reaching scale.

Ultion’s head start could provide a competitive advantage, but analysts caution that the country remains in the early phases of building a full LFP ecosystem. Key challenges include developing domestic materials processing, expanding the skilled workforce and achieving manufacturing at scale.

Even so, confidence in the sector is building. Ultion’s expansion signals a growing belief that the US battery industry can become a more meaningful contributor to global LFP supply, as investment rises and demand for reliable energy storage continues to grow.