Mercedes, Stellantis to work with US firm on new batteries

Wednesday, 1 December 2021

Mercedes-Benz and Stellantis have announced partnerships with Factorial Energy to develop solid state batteries.

Automakers Mercedes-Benz and Stellantis announced agreements with U.S. company Factorial Energy on Tuesday to help develop solid-state battery technology that they hope could make electric cars more attractive to a mass market.

Mercedes-Benz, part of Daimler AG, said it is joining forces with Factorial, based in Woburn, Massachusetts, to jointly develop batteries with the aim of testing prototype cells as early as next year.

Stellantis has previously teamed up with Mercedes-Benz and European company TotalEnergies on battery production.

It said it is “investing a high double-digit million dollar amount in Factorial” that will give it the right to a representative on the battery company's board of directors.

Stellantis, which combined PSA Peugeot and Fiat Chrysler, said it signed a joint development agreement with Factorial and is making a “strategic investment” in the company. It didn't detail the size of the investment.

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Solid-state batteries have solid conducting material instead of the liquid electrolyte found in most current lithium-ion batteries. They can store more energy, expanding range or allowing for smaller batteries.

“Our investment in Factorial and other highly recognised battery partners boosts the speed and agility needed to provide cutting-edge technology for our electric vehicle portfolio,” said Stellantis CEO Carlos Tavares. “Initiatives like these will yield a faster time to market and more cost-effective transition to solid-state technology.”

In an interview with Reuters, Factorial Energy CEO Siyu Huang said with its new partners the company could develop batteries that not only enable safer and longer driving range vehicles, but that are also compatible with conventional lithium ion battery manufacturing environments.

Hyundai and Kia have also signed a partnership with Factorial Energy which Forbes reported on earlier. The partnerships follow Stellantis's deal with lithium developer Vulcan Energy Resources and Daimler's investment in EV charging venture Ionity's latest funding round.