SK On is joining forces with US solid-state battery startup Factorial Energy to explore the manufacturability of next-generation battery technology. The two companies announced on the 29th (local time) that they had signed a memorandum of understanding (MOU) to validate Factorial’s solid-state battery platform “FEST” within SK On’s production environment and verify its technical feasibility.
The core of this collaboration is to assess commercialization potential by integrating Factorial’s solid-state battery technology into SK On’s global manufacturing infrastructure. This is a non-binding MOU with no legal force, and the parties have not yet confirmed joint production or mass manufacturing. The two companies plan to review a definitive agreement in the future.
SK On will also evaluate whether its currently operating lithium-ion battery production facilities can be utilized for the development and production of Factorial’s solid-state batteries. Factorial is pursuing a strategy of maximizing the use of existing battery production infrastructure to reduce the cost and time required for solid-state battery commercialization. The idea is to accelerate the transition to mass production by enhancing compatibility with existing lithium-ion battery processes, rather than building new dedicated factories from scratch.
Solid-state batteries are attracting attention as a next-generation technology that can significantly improve energy density and safety compared to conventional lithium-ion batteries by replacing liquid electrolytes with solid ones. While they can reduce battery size and weight while extending electric vehicle driving range, the technology to produce them at scale while maintaining product performance remains the biggest hurdle to commercialization.
Factorial possesses its own solid-state battery technology and pilot production lines, but urgently needs collaboration with a battery manufacturer that has global production networks and process operation experience to elevate this to mass production. SK On is also developing its own solid-state battery technology, which allows for cross-validation of Factorial’s technology performance and manufacturability — a key factor behind this partnership.
SK On’s experience operating large-scale battery plants in the US and other global markets also appears to have been influential. SK On is currently operating a 22 GWh plant in Commerce, Georgia, and is expanding its North American production capacity to around 100 GWh, including a Tennessee plant and joint venture facilities. For Factorial, SK On’s production experience offers a valuable opportunity to verify the commercialization potential of its technology at actual mass-production scale, beyond pilot production.
“Battery technology innovation only matters when it can be manufactured at scale,” said Siyu Huang, CEO of Factorial. “SK On’s global production network and manufacturing expertise will play a critical role in integrating solid-state battery technology into real production ecosystems.”
Park Ki-soo, head of SK On’s Future Technology Institute, said, “This collaboration will serve as an opportunity to evaluate the technical feasibility and production readiness of solid-state batteries based on SK On’s battery technology and manufacturing expertise. We will continue to explore diverse collaboration opportunities in the next-generation battery space.”
SK On previously established a partnership with another solid-state battery startup, Solid Power. The company is steadily expanding collaborations with specialized firms alongside its own technology development, with a goal of commercializing solid-state batteries by 2029. In September last year, it also completed a solid-state battery pilot plant at its Future Technology Institute in Daejeon.
Factorial is developing solid-state batteries with global automakers including Mercedes-Benz, Stellantis, and Hyundai Motor-Kia. Hyundai Motor-Kia made a strategic equity investment in Factorial in 2021 and signed a joint development agreement, while Mercedes-Benz successfully achieved over 1,200 km of driving range on a single charge with a test vehicle equipped with Factorial batteries. Stellantis is also validating performance by installing 77 Ah-class battery cells in EV prototypes. Factorial is targeting commercialization as early as next year.
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