Factorial Energy has signed a non-binding memorandum of understanding with SK On to assess whether the South Korean cell maker’s production base — more than 200 GWh of annual capacity worldwide — could support manufacturing of Factorial’s solid-state batteries. The Nasdaq-listed developer (FAC) announced the agreement this week. Under the MOU, the two companies will jointly evaluate the technical feasibility and manufacturing considerations for Factorial’s FEST solid-state technology, drawing on SK On’s battery technology and manufacturing expertise.
Highlights
- More than 200 GWh of annual battery production capacity worldwide at SK On, including approximately 100 GWh in the United States
- 22 GWh of that U.S. capacity sits in Commerce, Georgia, with additional operations in Tennessee
- The agreement covers FEST, Factorial’s lithium-metal solid-state platform, rather than its all-solid-state Solstice line
- The MOU is non-binding apart from certain customary provisions, with definitive agreements expected later
What the Agreement Covers
The stated objective is narrower than a supply deal. According to Factorial, the companies will assess whether and how SK On’s existing lithium-ion manufacturing infrastructure could support future development of solid-state battery technologies — a question of process compatibility rather than committed volume.
That framing matches Factorial’s stated approach to industrialization, which the company describes as capital-light: designing cells that can run on established production lines rather than purpose-built plants. The company positions the SK On agreement as a manufacturing-focused partnership with a global battery producer, consistent with a strategy of scaling through existing manufacturing ecosystems.
“A battery breakthrough only matters if it can be manufactured at scale,” said Siyu Huang, CEO of Factorial. “That is what makes this partnership with SK On so significant. Their manufacturing footprint spans some of the world’s most advanced battery facilities, and their expertise will be critical in shaping how solid-state battery technology integrates into global production ecosystems.”
SK On’s Manufacturing Base
SK On supplies electric vehicle batteries to automotive OEMs including Hyundai Motor Group, Ford, Volkswagen, and Ferrari. Its capacity is distributed as follows:
- Worldwide: more than 200 GWh annually
- United States: approximately 100 GWh
- Commerce, Georgia: 22 GWh
- Tennessee: additional operations, capacity not specified
The company was spun out of SK Innovation as an independent entity in October 2021 and is headquartered in Seoul. It operates or is building battery plants across the United States, Europe, and Asia.
“This collaboration provides an opportunity to evaluate the technical feasibility and manufacturing readiness of solid-state battery technologies, drawing on SK On’s battery technology and manufacturing expertise,” said Ki-soo Park, Head of the Institute of Future Technology at SK On. “SK On will continue to explore collaboration opportunities in next-generation battery technologies.”
Where Factorial Is Targeting the Technology
Factorial describes its solid-state platforms as intended for next-generation mobility, aerospace systems, and hyperscale data centers, with higher energy density enabling smaller and lighter packs. The company is backed by IQT — the not-for-profit strategic investor serving the U.S. national security community and allied nations — alongside Mercedes-Benz, Stellantis, Hyundai, and Kia.
Its FEST cells have already reached vehicle-level integration: Stellantis has installed 77 Ah FEST cells in a Dodge Charger Daytona demonstration vehicle, which the two companies have since taken into road testing.
What Happens Next
Because the MOU carries no binding volume or timing commitments, the near-term signal is evaluative rather than contractual. Factorial says the terms of the collaboration are expected to be set forth in definitive binding agreements, with no date given for that step.
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