Hyundai, Kia invest in US solid-state battery startup Factorial

Hyundai Motor Co. and Kia Corp. invested in US solid-state battery startup Factorial Energy in a move to secure various technologies for the next-generation electric vehicle battery, according to the world’s No. 5 automaker duo on Oct. 29.

Hyundai and Kia were estimated to have spent tens of millions of dollars for a partnership with the startup, although they have yet to disclose details on the size of the investment. This marks Factorial’s first strategic investment from a major automaker.

The three companies agreed to jointly develop solid-state batteries and technologies to apply Factorial’s cells to EVs. They will also integrate Factorial technology at the cell, module and system levels, perform vehicle-level integration, and co-develop specifications for manufacturing Factorial’s batteries. 

The startup said its Factorial Electrolyte System Technology leverages a proprietary solid electrolyte material that enables safe and reliable cell performance with high-voltage and high-capacity electrodes and has been scaled in 40Ah cells for performance at room temperature. Existing solid-scale batteries can often be charged only at a high temperature above 60 degrees Celsius.

The technology extends the driving range by 20-50%, compared to conventional lithium-ion batteries, and is drop-in compatible for easy integration into existing lithium-ion battery manufacturing infrastructure, according to Factorial, which is based in Woburn, Massachusetts.

“Our partnership with Hyundai is yet another validation of our solid-state battery technology, and we look forward to demonstrating its market readiness in Hyundai vehicles,” said Factorial Energy CEO Siyu Huang in a statement.

Hyundai plans to start test production of EVs equipped with solid-state batteries in 2025 and targets mass production from 2030.

Global automakers and battery producers are accelerating the development of all-solid-state batteries – reportedly safer and more durable than existing ones.

Hyundai has already invested in two companies – SES Holdings Pte. Ltd. and Solid Power – to secure the next-generation battery technologies.

Write to Hyung-Kyu Kim at khk@hankyung.com
Jongwoo Cheon edited this article.