Factorial Energy, a startup specializing in solid-state and semi-solid-state batteries, has signed a memorandum of understanding with South Korean company SK On to study the feasibility of producing solid-state cells on a large scale using existing lithium-ion battery manufacturing plants and production lines.
The agreement comes at a time when solid-state batteries are still struggling to move from prototypes to large-scale commercial production. These batteries promise higher energy density, faster charging, and improved safety because they replace flammable liquid electrolytes with solid materials, but manufacturing them in large quantities without defects remains a complex challenge.
Testing Manufacturability at Scale
Under the memorandum of understanding, SK On will assess whether its expertise and global manufacturing infrastructure can support the scaling of Factorial’s technology and its integration into global production processes. The collaboration is significant because it will test the possibility of leveraging existing manufacturing assets rather than building an entirely separate production system for solid-state batteries.
Seo Hwang, Factorial’s chief executive officer, said in a statement: “A battery leap only matters if it can be manufactured at scale.” She added that SK On’s manufacturing footprint spans some of the world’s most advanced battery facilities and that its expertise would be important in determining how to integrate solid-state technology into global production systems.
Technology Being Tested in Real Vehicles
Factorial has been working on solid-state and semi-solid-state batteries for years and is already testing its cells with several automakers, including Mercedes-Benz, Stellantis, and Hyundai.
Earlier this year, Mercedes-Benz said that a prototype EQS equipped with a Factorial semi-solid-state battery traveled 749 miles on a single charge, with an estimated range of 84 miles remaining upon arrival. Stellantis has also installed the company’s battery in a prototype Dodge Charger Daytona as part of a road-testing program.
SK On’s Capabilities and the Agreement’s Limitations
SK On supplies batteries to Hyundai, Kia, Ford, Volkswagen, and Ferrari, and has global annual manufacturing capacity of approximately 200 gigawatt-hours, including nearly 100 gigawatt-hours installed in the United States.
However, the company scaled back its U.S. operations after the Trump administration canceled federal incentives for electric vehicles last year, leading to a reset in demand for electric cars. SK On and Ford also ended their joint venture to shift their focus toward the fast-growing stationary energy-storage market.
The agreement does not represent a final commitment from either party; it is a nonbinding memorandum of understanding, meaning that the American or Korean company can withdraw if the partnership does not lead to meaningful breakthroughs in manufacturing. Factorial has similar nonbinding agreements with LG Chem and South Korean battery-materials suppliers Philenergy and Posco Future M.