Stellantis and Mercedes-Benz Invest in Solid-State Battery Tech

Factorial Energy Secures Investments from Mercedes-Benz and Stellantis

Factorial Energy, a company focused on the development of solid-state batteries for electric vehicles, has expanded its investor base with the addition of two prominent automotive manufacturers: Mercedes-Benz and Stellantis.

Joint Development Agreements

Both Mercedes-Benz and Stellantis are entering into separate joint collaboration agreements with Factorial Energy to co-develop advanced battery technologies.

Mercedes-Benz, operating under Daimler AG, has made a “double-digit million dollar” investment in the startup. Stellantis has chosen not to disclose the specific amount of its investment.

Recent Partnerships and Testing

This announcement follows closely on the heels of Factorial Energy’s previous partnership and investment deal with Hyundai and Kia. This earlier collaboration focuses on the co-development and testing of battery technology within Hyundai’s electric vehicle lineup.

Initial cell prototypes are anticipated to undergo testing as soon as next year.

Timeline for Production

Mercedes-Benz is targeting the integration of this technology into series production within the next five years. Stellantis, meanwhile, aims to implement solid-state technology in its vehicles by 2026.

The Promise of Solid-State Batteries

Advantages in Safety and Energy Density

Solid-state batteries are widely regarded as a potential breakthrough in battery technology, offering improvements in both energy density and safety.

Conventional batteries utilize flammable liquid electrolyte solutions. Solid-state batteries, by contrast, are expected to significantly reduce the risk of fire due to their solid electrolyte material.

Factorial Energy asserts that its technology can increase vehicle range by 20% to 50% when compared to traditional lithium-ion batteries.

Growing Competition in the Solid-State Market

The potential for a competitive edge in battery performance has spurred substantial investment from major automakers into startups developing solid-state technology.

Factorial Energy is now part of a rapidly expanding solid-state battery market. This market previously consisted primarily of established battery manufacturers like LG Chem, alongside newer companies such as Quantumscape and Solid Power.

Automaker Backing of Competitors

Both Quantumscape and Solid Power have also secured investments from leading automotive companies. Volkswagen has invested over $300 million in Quantumscape, while Ford and BMW have provided backing to Solid Power.

The recent investments in Factorial Energy – securing support from three major automakers since its emergence in April – demonstrate the increasing interest and competition within the solid-state battery sector.