Factorial Energy and LG Chem forge solid-state battery alliance

Solid-state battery developer Factorial Energy and LG Chem have announced a deal on new battery materials. They will also consider licensing of solid-state battery technologies and material supplies at a later date. Both companies to want lead the way in the commercialisation of solid-state batteries.

Factorial and LG Chem have signed a memorandum of understanding under which the collaboration aims to accelerate the development of solid-state battery materials. The aim is to “secure future competitive advantages” by combining the strengths of both companies. Once the project has been successfully completed, Factorial and LG Chem say they will then negotiate the licensing of technologies and the supply of materials.

Factorial Energy is a US developer of solid-state battery cells supported by Mercedes-Benz, Stellantis and Hyundai-Kia, which opened its first development and production facility near Boston in the autumn. With a capacity of 200 MWh, this is said to be the largest production line for solid-state batteries in the USA to date. The funds for the construction of the factory come, among other things, from a USD 200 million financing round concluded at the beginning of 2022, which Stellantis and Mercedes-Benz led at the time.

In its latest announcement, Factorial describes its technology, called ‘FEST’ (Factorial Electrolyte System Technology), as “revolutionary” because it “has the potential to radically reduce the weight of electric vehicles, increase range, shorten charging time and improve safety”.

The new partner LG Chem is one of the largest South Korean chemical groups and parent company of the battery specialist LG Energy Solution. In addition to its core business with cathode materials, LG Chem also produces separators as well as conductive and binding agents. The group is also “actively conducting R&D and external collaborations to strengthen its R&D capabilities for new materials in response to changes in next-generation battery technology”, according to the statement.

“Through this collaboration, we will become technology leaders in the field of next-generation batteries,” said Jong-ku Lee, CTO of LG Chem. “We expect to secure solid-state materials through Factorial’s accumulated experience in next-generation batteries and LG Chem’s superior material technology.”

“We are thrilled to enter into this collaboration with LG Chem, one of the pre-eminent global leaders in battery materials,” added Factorial CEO Siyu Huang. “The electric vehicle industry is at the cusp of a much-needed breakthrough in battery technology, and we believe that close supply chain partnerships will help accelerate this transition. Together with LG Chem, we’re advancing the development of critical solid-state battery technology that will unlock the electric vehicle future.”

businesswire.com