Nam Hyun-woo has worked as a staff writer at The Korea Times since 2013, mostly covering business and politics. He currently belongs to the Business Desk where he covers topics such as emerging tech, AI, ICT and Korea's chaebol community. Prior to joining the team, he was the paper's correspondent for the presidential office of Korea during the Yoon Suk Yeol and Moon Jae-in administrations.
POSCO Future M bets on US solid-state battery firm Factorial
POSCO Future M's cathode materials plant in Pohang, North Gyeongsang Province / Courtesy of POSCO Future M
By Nam Hyun-woo
POSCO Future M said Tuesday it has made a strategic investment in U.S.-based solid-state battery developer Factorial to secure an early foothold in the next-generation battery market.
The company said it signed an investment agreement with Factorial on Jan. 7 and completed the capital injection on Monday.
The investment builds on a memorandum of understanding the two companies signed in November to jointly develop all-solid-state battery technology, further strengthening their partnership.
All-solid-state batteries replace the liquid electrolyte in conventional lithium-ion batteries with a solid material, making them safer and capable of storing more energy and charging faster. The technology is widely seen as a potential game changer for electric vehicles and robotics.
POSCO Future M said the investment will help it prepare for the rapid growth of the solid-state battery market, while Factorial expects to secure a stable supply of high-quality battery materials and enhance its manufacturing competitiveness.
Headquartered in Massachusetts, Factorial is regarded as a leading player in the solid-state battery sector and is pursuing a listing on U.S. stock markets. In Korea, the company operates a pilot solid-state battery manufacturing facility in Cheonan, South Chungcheong Province.
Factorial’s solid-state battery platform, Solstice, is known for its high energy density and safety. The company has partnerships with global automakers, including Mercedes-Benz, Stellantis, Hyundai Motor and Kia.
POSCO Future M has been conducting cathode material sample tests with Factorial, with its materials receiving favorable evaluations among multiple suppliers for output performance and quality.
The company expects its solid-state battery materials to be increasingly applied not only to autonomous electric vehicles and urban air mobility, but also to humanoid robots, robotics and other physical artificial intelligence (AI) applications.
According to market research firm Statista, the global physical AI market is projected to grow from $5 billion in 2020 to $64.3 billion by 2030. Morgan Stanley estimates the global humanoid robot market could reach $5 trillion by 2050.
Hong Young-jun, head of POSCO Future M’s Technology Research Laboratory, said the company has secured material design and coating technologies optimized for solid-state batteries and is expanding its portfolio to include sulfide-based solid electrolytes and high-capacity silicon and lithium metal anodes.
“Through a more advanced partnership with Factorial, we expect to secure differentiated competitiveness in line with the commercialization of solid-state batteries,” Hong said.