Factorial Energy, a Massachusetts-based company pioneering advanced solid-state batteries, announced Thursday its plans to list on the stock exchange through a merger with Cartesian Growth Corporation III, a special purpose acquisition company (SPAC). The deal values Factorial at $1.1 billion and will initially provide the company with $100 million in capital. Shares are expected to begin trading around mid-2026.
Solid-State Technology: A Potential Breakthrough
Factorial is developing solid-state batteries as an alternative to traditional lithium-ion batteries currently used in electric vehicles (EVs). These batteries offer several key advantages:
- Higher energy density: Storing more energy for longer ranges.
- Reduced weight: Making EVs more efficient and improving performance.
- Enhanced safety: Eliminating the flammable liquid electrolyte present in conventional batteries.
- Faster charging: Reducing the time needed to replenish the battery.
These improvements could address major barriers to EV adoption, such as range anxiety and long charging times.
Early Partnerships and Testing
Factorial has already secured partnerships with major automakers, including Mercedes-Benz, Stellantis (Jeep, Dodge, Ram, Fiat, Peugeot), Hyundai, and Kia.
- Mercedes-Benz successfully tested a Factorial battery in a production vehicle earlier this year, achieving a range of nearly 750 miles on a single charge.
- Next year, Stellantis plans to integrate Factorial batteries into its test vehicles.
- The initial rollout is anticipated in high-performance and luxury models, such as the Dodge Charger Daytona, before expanding to mainstream vehicles.
SPAC Route: Risks and Opportunities
The company chose to go public via a SPAC merger instead of a traditional initial public offering (IPO). SPACs offer a faster, less scrutinized path to the stock market, but they have faced increased skepticism following recent high-profile failures.
Two competitors, QuantumScape and Solid Power, went public through SPACs but now trade well below their peak valuations due to challenges in scaling up solid-state battery production.
The Broader EV Landscape
Despite a recent slowdown in EV sales and some automakers shifting investments towards hybrid and gasoline models, Factorial CEO Siyu Huang remains optimistic. She argues that current battery technology is holding back wider EV adoption.
“The existing battery is not big enough and it’s not light enough, it’s not efficient enough… There needs to be a next generation to address the issues that our U.S. consumers are facing.”
Looking Ahead
Factorial’s success hinges on overcoming the manufacturing hurdles that have plagued other solid-state battery developers. If the company can deliver on its promises, it could play a pivotal role in accelerating the transition to electric vehicles. The deal with Cantor Fitzgerald & Co. is expected to streamline this transition.
The upcoming years will be crucial for Factorial Energy as it navigates mass production, competition, and the evolving demands of the automotive industry.
