Photo: Mercedes-Benz
If regular lithium-ion cells were people, they should be feeling depressed right now. Most EV makers use them not because they want but because they have to while solid-state batteries are not ready. Mercedes-Benz has just joined its Japanese competitors by making a deal with Factorial Energy. The main goal of this agreement is to start testing solid-state cells produced by the American SSB startup as soon as next year.
To ensure a seat in the first roll for when these batteries are ready, Mercedes-Benz will help with the development and also invest “a high double-digit million dollar amount in Factorial.” That means the German company put more than $50 million but less than $100 million on the American startup. With this kind of money, Mercedes-Benz can have a representative at Factorial’s board of directors.
The German carmaker is not the only company full of hope this startup’s technology will soon be available. Hyundai and Kia have also invested in the startup in October. Stellantis announced another investment on November 30 and talked more about what it wants than Mercedes-Benz did.
According to Stellantis, Factorial developed FEST (Factorial Electrolyte System Technology), which “extends driving range and is drop-in compatible for easy integration into existing lithium-ion battery manufacturing infrastructure.” That is a significant concern for multiple car manufacturers that are already investing in current cells.
If solid-state batteries are produced in a completely new way, all the money put in making current lithium-ion cells goes down the drain. Some automakers are just buying cells from suppliers that have to deal with this risk on their own. Other manufacturers such as GM are all-in building new cell factories to ensure they have a steady battery supply and more control over what goes inside their cars.
Solid Power believes its solid-state platform can be integrated with current manufacturing methods, such as Factorial. QuantumScape will have to develop new manufacturing methods to get its platform going with multiple chemistries – including LFP. Japanese carmakers seem to think solid-state cells will demand a unique production method, hence their caution in going all-electric right now. Perhaps everyone is right in their approaches, but some may stand apart from the competition. We’ll undoubtedly learn more about that in the next few years.
The German carmaker is not the only company full of hope this startup’s technology will soon be available. Hyundai and Kia have also invested in the startup in October. Stellantis announced another investment on November 30 and talked more about what it wants than Mercedes-Benz did.
According to Stellantis, Factorial developed FEST (Factorial Electrolyte System Technology), which “extends driving range and is drop-in compatible for easy integration into existing lithium-ion battery manufacturing infrastructure.” That is a significant concern for multiple car manufacturers that are already investing in current cells.
If solid-state batteries are produced in a completely new way, all the money put in making current lithium-ion cells goes down the drain. Some automakers are just buying cells from suppliers that have to deal with this risk on their own. Other manufacturers such as GM are all-in building new cell factories to ensure they have a steady battery supply and more control over what goes inside their cars.
Solid Power believes its solid-state platform can be integrated with current manufacturing methods, such as Factorial. QuantumScape will have to develop new manufacturing methods to get its platform going with multiple chemistries – including LFP. Japanese carmakers seem to think solid-state cells will demand a unique production method, hence their caution in going all-electric right now. Perhaps everyone is right in their approaches, but some may stand apart from the competition. We’ll undoubtedly learn more about that in the next few years.
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