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Posco Future M invests in U.S. 'dream battery' company Factorial Energy

Published: 27 Jan. 2026, 15:54

An employee at Posco Future M's Technology Research Center in Sejong is seen operating pilot equipment for the test production of cathode materials, in this file photo provided by the company [POSCO FUTURE M]

Posco Future M has made a direct investment in U.S.-based solid-state battery company Factorial Energy as part of its growth strategy focused on the next-generation battery market, the company said Tuesday.

The move comes as Posco Future M aims to strengthen its competitiveness by securing a high-quality materials supply chain.

“We signed an investment agreement with Factorial on Jan. 7 and completed the payment on Monday,” Posco Future M said Tuesday. “The size of the investment cannot be disclosed as per mutual agreement with Factorial.”

Industry sources believe the deal likely involved less than 50 billion won ($34.5 million), given that Posco Future M did not file a public disclosure with the Financial Supervisory Service or the Korea Exchange.

Solid-state batteries, often referred to as “dream batteries,” replace flammable liquid electrolytes with solid ones. Since solid electrolytes do not require separators to transfer lithium ions between the anode and cathode, the battery’s overall size can be reduced while enhancing safety.

Factorial, headquartered in Massachusetts, is considered one of the leading players in the field. The company is currently preparing for a public listing in the United States and operates a pilot plant for solid-state batteries in Cheonan, South Chungcheong.

Posco Future M's Pohang cathode material plant located in the 4th Industrial Complex in Pohang, North Gyeongsang is seen on Dec. 16, 2025. [POSCO FUTURE M]

It has formed partnerships with major global automakers, including Mercedes-Benz, Stellantis and Hyundai Motor Group.

In November last year, Posco Future M and Factorial signed a memorandum of understanding to collaborate on testing cathode material samples for solid-state batteries.

Posco Future M aims to expand its portfolio of solid-state battery materials — leveraging its expertise in material design and coating technology — to serve markets ranging from next-generation mobility to physical AI.

“With this deepened partnership, we will secure a distinct competitive edge as the solid-state battery market begins to take off,” said Hong Young-jun, head of Posco Future M's Technology Research Center.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY KO SUK-HYUN [[email protected]]