General Motors (GM) has announced that it is leading a $60 million financing round in Mitra Chem, a California-based startup that is developing lower-cost batteries for electric vehicles (EVs).

Mitra Chem, founded by former Tesla and Toyota engineers, is working on a new type of battery based on lithium iron phosphate (LFP) chemistry. LFP batteries are cheaper and safer than conventional lithium-ion batteries, as they do not use expensive and scarce minerals like cobalt and nickel. LFP batteries are also more durable and have a longer lifespan.

However, LFP batteries have a lower energy density than lithium-ion batteries, which means they need more weight and volume to achieve the same range. Moreover, most of the LFP batteries available in the market are produced by Chinese companies, which poses a challenge for US-based EV makers who want to qualify for government subsidies.

To overcome these drawbacks, Mitra Chem is developing a novel LFP battery chemistry that adds manganese to the cathode, which is the positive electrode of the battery. The addition of manganese is expected to increase the energy density of the LFP battery, while maintaining its low cost and high safety.

Mitra Chem claims that it can rapidly test and optimize its battery formulas using an artificial intelligence (AI) powered platform that can synthesize and evaluate thousands of cathode designs every month. The company aims to commercialize its battery technology by 2025.

GM, which has ambitious plans to electrify its entire vehicle portfolio by 2035, sees Mitra Chem as a strategic partner that can help it lower the cost and improve the performance of its EV batteries. GM has its own battery joint venture with LG Chem, called Ultium Cells LLC, which produces lithium-ion batteries for GM’s EVs.

However, GM is also exploring other battery technologies that could offer advantages over lithium-ion batteries, such as solid-state batteries and metal-air batteries. GM’s vice president of innovation and growth, Gil Golan, said that Mitra Chem’s labs, methods and talent will complement GM’s own research and development efforts.

Golan said that if Mitra Chem succeeds in developing its LFP battery technology, it could be used in GM’s vehicles later this decade.

The details of GM’s investment in Mitra Chem were not disclosed. The financing round also included participation from other investors such as Breakthrough Energy Ventures, Prelude Ventures and The Engine.