MycoWorks, a California-based manufacturer of mushroom-based fungi leather called Reishi opened a commercial-scale plant to produce fine mycelium, which would reportedly be the world's first commercial-scale Fine Mycelium production plant.

The 136,000 sq ft plant, which will produce Reishi that has been embraced by luxury brands like Hermès and Ligne Roset for various applications, is expected to begin operation on September 20, 2023.  

MycoWorks claims that Reishi overcomes two longstanding barriers in the luxury industry: Product quality and scalable manufacturing. The test results show that the material offers natural alternatives to leather without relying on plastics like polyurethane or PVC. This breakthrough is expected to lead to the commercialization of various items by luxury brands, addressing the demand for sustainable, high-quality materials. In addition, the company's vertically integrated approach allows control over every step of the production process, supporting scaling production. 

Analyst QuickTake: MycoWorks launched its first fashion products made from Reishi in July 2022 , after raising series C funding of USD 125 million in January 2022 to accelerate the commercial production of Reishi. Towards the end of last year, the company also received an investment of an undisclosed amount from GM Ventures as part of a strategic partnership to co-develop mycelium leather materials for a range of automotive design applications. With the opening of this new plant, the company is looking to successfully commercialize its product across various applications.