Aleees raises NT$280M to build LFP cathode line, joins Tesla supply chain
What's the deal? AleeesDealroom has a profile for this one. Try Dealroom →, a Taiwanese lithium iron phosphate (LFP) battery cathode material maker, has secured NT$280M (roughly $8.8M) through a private placement to fund a new production line in southern Taiwan. The company plans to invest over NT$300M to build a 50,000-tonne LFP precursor facility, with shipments expected to begin in 2027.
According to its prospectus, a North American client order — widely reported to be Tesla — could contribute roughly NT$700M in annual revenue starting mid-2027, rising to over NT$3B by 2028.
Why now? China restricted exports of its latest LFP technology in mid-2025, covering key upstream precursors and cathode materials. With China dominating the global lithium battery supply chain, geopolitical pressure is pushing companies like Tesla to find non-Chinese suppliers.
Aleees is one of the few companies outside China with complete LFP cathode manufacturing technology and patents, making it a strategic beneficiary of this shift.
What could go wrong? Aleees has been loss-making for years, squeezed by Chinese rivals that operate at massive scale and rock-bottom prices. Taiwan's total LFP cathode capacity sits at about 2,000 tonnes per year — versus China's four million tonnes. Scaling up fast enough to meet a major automaker's demands while staying financially viable will be a serious challenge.
The company also cited a non-disclosure agreement with its client, declining to confirm the Tesla relationship directly.
The signal: Aleees is classified as an early-stage company on Dealroom despite being a publicly listed cathode materials maker — a reminder of how thin the non-Chinese LFP supply base really is. With Beijing's mid-2025 export restrictions covering the very precursors and cathode materials Aleees produces, the handful of firms outside China with proven LFP manufacturing technology are suddenly positioned at the centre of a geopolitical bidding war for battery supply chain security.
Read more: Central News Agency
