Posco Future M has invested directly in Factorial Energy, a U.S.-based solid-state battery developer, as part of its strategy to strengthen its position in the next-generation battery market. The investment agreement was signed on January 7 and payment was completed recently, although financial details were not disclosed. Industry observers estimate the investment to be under 50 billion won (approximately $34.5 million), based on the absence of a public filing.
Solid-state batteries use solid electrolytes instead of flammable liquid ones, eliminating the need for separators and enabling a smaller form factor with improved safety. Factorial Energy, headquartered in Massachusetts, is preparing for a public listing in the United States and operates a pilot production facility for solid-state cells in Cheonan, South Chungcheong Province. The company has formed partnerships with global automakers including Mercedes-Benz, Stellantis, and Hyundai Motor Group.
In November, Posco Future M and Factorial Energy signed a memorandum of understanding to test cathode material samples for solid-state applications. Posco Future M plans to leverage its expertise in material design and coating technologies to expand its portfolio of solid-state battery materials, targeting markets from advanced mobility solutions to applications in physical AI devices.
Hong Young-jun, head of Posco Future M’s Technology Research Center, said the deepened collaboration will provide a distinct competitive edge as the solid-state battery market begins to take off. This investment underscores Posco Future M’s commitment to securing a high-quality supply chain for advanced battery materials and preparing for the anticipated growth in next-generation energy storage technologies.
Source: Korea JoongAng Daily
