Factorial Energy, a firm developing solid-state batteries for electric vehicles, has added two more large automakers to its investor list: Mercedes-Benz and Stellantis, both of which want to collaborate on battery development in separate joint ventures. Mercedes, a Daimler AG trademark, stated it put “double-digit million dollars” into Factorial.
Stellantis refuses to reveal the amount of its investment. The announcement comes less than a month after Factorial announced a separate investment and relationship with Hyundai and Kia to co-develop and test battery technology for Hyundai EVs.
The first cell prototypes will very certainly be tested next year. In the end, Mercedes hopes to put the technology into serial production within the next five years, while Stellantis hopes to have solid-state technology in place by 2026. Many people believe that solid-state batteries will be the next big thing in battery technology, not just because of their energy density but also because of their safety.
Solid-state batteries should represent less of a fire danger than traditional batteries, which use flammable liquid electrolyte solutions. Factorial claims that its technology, which contains a solid electrolyte substance, extends the range of typical lithium-ion batteries by 20% to 50%.
Major automakers have put billions on electrification and new companies that claim to be close to unlocking the solid-state code, and the allure of a comparative battery advantage has proven alluring. Factorial has entered an increasingly competitive solid-state battery industry that has previously dominated by legacy battery manufacturers such as LG Chem, as well as newcomers such as Quantumscape and Solid Power.
Major automakers are also backing the latter two firms. Volkswagen has invested more than $300 million in Quantumscape, while Ford and BMW have invested in Solid Power. This newest development from Factorial, which has received support from three major manufacturers since coming out of stealth in April, indicates that a new horse has joined the race.
Carlos Tavares, CEO of Stellantis, said: “Our investment in Factorial and other well-known battery partners increases our ability to supply cutting-edge technology for our electric car portfolio with the speed and agility we require.” These kinds of initiatives will result in a quicker time to market and a more cost-effective shift to solid-state technology.”
