US-based electric vehicle (EV) battery developer Factorial Energy completed a $200m series D round yesterday co-led by carmakers Mercedes-Benz and Stellantis, as the automotive industry focuses increasingly on EV-related offerings.
The deal was first revealed last month – though the funding size was undisclosed – alongside independent development agreements with each corporate.
Factorial Energy is working on safe and affordable solid-state batteries that will last longer per charge compared with the more traditional lithium-ion counterpart. It claims its Factorial Electrolyte System Technology helps achieve consistent cell performance and superior driving range.
Factorial Energy’s chief executive Siyu Huang said: “We continue to move aggressively towards our goal of delivering automotive-scale, solid-state battery technology to our customers.
“This funding will enable us to not only advance core research and development but also scale our team and invest in manufacturing facilities to drive commercial production.”
Automotive manufacturers Hyundai Motor Company and Kia Corporation had provided an undisclosed amount of funding as part of strategic partnerships announced in November 2021.
Factorial’s total funding stood at more than $40m when it emerged from stealth in April 2021, and its shareholders included former president and chief executive of carmaker Ford Motor Company Mark Fields, former senior adviser to the Obama administration’s presidential task force on the auto industry Harry Wilson, and investment firms Gatemore Capital Management and Wave Equity Partners.
Stellantis chief executive Carlos Tavares added: “Stellantis is full-speed ahead on its electrification transformation with 33 electrified models available right now and eight battery electric vehicles coming in the next 18 months.
“With our partners, including Factorial, we will quickly electrify our brand portfolio with safe, sustainable and affordable solutions.”
Global carmakers intend to spend about $515bn on EVs and batteries-related investments and initiatives by 2030 as part of their ongoing efforts to reach net-zero targets and phase out fossil fuels, according to a Reuters analysis in November 2021.
China-headquartered EV manufacturers Nio and XPeng had received corporate backing before listing on the New York Stock Exchange (NYSE) in 2018 and 2020 respectively. US-based luxury EV producer Lucid Motors agreed to a reverse merger with NYSE-listed special purpose acquisition company Churchill Capital Corp IV in February 2021.
France-based low-carbon battery producer Verkor got $118m in July 2021 in a round co-led by automaker Renault Group while Japan-headquartered EV management platform operator Rexev raised $5.6m from multiple corporates three months later.
