Factorial Inc. and Cartesian Growth Corporation III have entered a definitive business combination agreement that values the solid-state battery developer at approximately $1.1 billion. The deal positions Factorial for a Nasdaq listing under the ticker symbol FAC, with closing expected mid-2026.
Highlights
- Factorial’s solid-state batteries achieved over 1,200 km (745 miles) of range in real-world testing using a modified Mercedes-Benz EQS vehicle
- The combination includes $100 million in new PIPE financing from institutional investors, with potential pro forma equity value of $1.5 billion assuming no redemptions
- Commercial expansion targets defense, aerospace, and robotics applications beyond passenger vehicles
- Existing automotive partnerships include Mercedes-Benz, Stellantis, Hyundai, and Kia
Transaction Structure and Valuation
The business combination values Factorial at $1.1 billion on a pre-money, pre-merger basis. Cartesian III currently holds approximately $276 million in cash in trust, subject to redemption.
The $100 million private placement of common stock supplements the trust funds. If no redemptions occur, the combined entity would carry an approximate $1.5 billion pro forma equity value.
Validated Battery Performance
Factorial’s solid-state cells have undergone rigorous OEM testing. Key validation results include:
- Mercedes-Benz EQS testing: 106 Ah cells delivered over 1,200 km range on a single charge in a lightly modified test vehicle
- Stellantis lab verification: 77 Ah cells demonstrated high energy density, fast charging capability, and robust performance across temperature extremes
Technology Platform
The Boston-based company develops two proprietary platforms:
- FEST® (Factorial Electrolyte System Technology): Delivers enhanced energy density and safety
- Solstice™: Provides compatibility with existing manufacturing systems
Both platforms position solid-state technology as alternatives to conventional lithium-ion batteries.
Market Expansion Strategy
Factorial is targeting applications beyond passenger vehicles. Defense, aerospace, and robotics markets present growth opportunities where high power output, extreme temperature operation, and lightweight construction are critical requirements.
“This agreement marks a pivotal inflection point in our progression from proven technology to broad commercial deployment across multiple industries,” said Dr. Siyu Huang, Co-founder and CEO of Factorial.
Cartesian III Chairman and CEO Peter Yu cited national security applications, including drones and UAVs, as key market opportunities validated during due diligence.
Transaction Advisors
- Factorial: Cantor Fitzgerald & Co. (exclusive financial advisor and sole PIPE placement agent); Goodwin Procter LLP (legal counsel)
- Cartesian III: Greenberg Traurig, LLP (legal counsel)
- Cantor: Thompson Coburn LLP (legal counsel)
Early Factorial investors include GVP Climate in partnership with Gatemore Capital Management and WAVE Equity Partners.
For more information, visit Factorial Energy or Cartesian Growth Corporation III.
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