SK On, Factorial Energy team up to tackle solid-state battery mass production

SK On has joined forces with US solid-state battery company Factorial Energy to explore the feasibility of mass-producing solid-state batteries. The two companies plan to examine whether Factorial's solid-state battery technology can be integrated into SK On's global production infrastructure — a step toward finding a path to commercializing what the industry calls the "dream battery."

SK On and Factorial announced Wednesday (local time) that they have signed a memorandum of understanding on technology and manufacturing cooperation for solid-state batteries.

The core of the partnership is to demonstrate Factorial's solid-state battery technology within SK On's production environment and verify its technical feasibility. The companies have not yet committed to joint production or mass manufacturing.

The two companies plan to jointly evaluate the manufacturing processes and production technology behind Factorial's solid-state battery platform, FEST. They will also assess whether SK On's existing lithium-ion battery production lines could be adapted for future solid-state battery development and manufacturing.

Solid-state batteries are a next-generation technology that replaces liquid electrolytes with solid ones, offering higher energy density and improved safety compared with conventional lithium-ion batteries. They can reduce battery size and weight while extending the driving range of electric vehicles, but scaling production to commercial volumes without sacrificing performance remains the industry's biggest hurdle.

Factorial has its own solid-state battery technology and pilot production lines, but scaling up to mass production requires a partner with a global manufacturing network and process expertise. SK On is also developing its own solid-state battery technology, making it well-positioned to cross-validate the performance and manufacturability of Factorial's approach — a dynamic that underpins the rationale for the partnership.

SK On's track record of operating large-scale battery factories in the United States and other markets also appears to have been a factor. For Factorial, the collaboration offers a chance to test the commercial viability of its technology at true production scale, beyond pilot runs. SK On operates a factory in Commerce, Georgia, with an annual capacity of 22 gigawatt-hours, and is expanding its North American production capacity to around 100 GWh, including its Tennessee plant and joint-venture facilities.

Factorial's strategy centers on maximizing the use of existing battery production infrastructure to cut the cost and time needed to commercialize solid-state batteries. Rather than building dedicated new factories from the ground up, the company aims to accelerate the shift to mass production by improving compatibility with existing lithium-ion battery processes.

"Innovation in battery technology only matters when it can be produced at scale," said Siyu Huang, CEO of Factorial. "SK On's global manufacturing network and production expertise will play a critical role in bringing solid-state battery technology into a real production ecosystem."

Park Ki-su, head of SK On's Future Technology Institute, said the collaboration "will be an opportunity to assess the technical feasibility and production readiness of solid-state batteries, drawing on SK On's battery technology and manufacturing expertise," adding that the company would continue to seek cooperation opportunities in next-generation battery development.

Factorial is also working on solid-state battery development with global automakers including Hyundai Motor, Kia, Mercedes-Benz and Stellantis. Hyundai Motor and Kia made a strategic equity investment in Factorial in 2021 and signed a joint development agreement. Mercedes-Benz has driven more than 1,200 kilometers on a single charge in a test vehicle equipped with Factorial's battery, while Stellantis is validating performance by fitting a 77 Ah battery cell into an electric vehicle prototype.