Factorial and SK On Sign MoU to Explore Solid-State Battery Manufacturing

Rhea-AI Summary

Factorial Energy (Nasdaq: FAC) announced a non-binding Memorandum of Understanding with SK On, a global electric-vehicle battery manufacturer, to explore manufacturing for Factorial’s FEST® solid-state battery technologies. The partners will jointly evaluate technical feasibility and manufacturing considerations, leveraging SK On’s more than 200 GWh of annual battery production capacity worldwide, including about 100 GWh in the United States.

The collaboration supports Factorial’s capital-light industrialization strategy by assessing how SK On’s existing lithium-ion infrastructure and global footprint could enable future solid-state battery development for mobility, aerospace, and high-performance markets. Definitive binding agreements are expected to define any future collaboration terms.

News Explained

Factorial says it has signed a non-binding MOU with SK On, moving the relationship to a signed evaluation arrangement rather than a manufacturing commitment; the release says the companies will assess feasibility and expect definitive agreements to set future terms.

Market Context

Factorial’s recent partnership announcement recorded a -35.62% 24-hour reaction. That history places...

Analysis

Factorial’s recent partnership announcement recorded a -35.62% 24-hour reaction. That history places the SK On collaboration in a cautious context; the non-binding MOU and future definitive agreements remain the principal items to watch.

Key Figures

Annual production capacity: more than 200 GWh U.S. production capacity: approximately 100 GWh Commerce capacity: 22 GWh +3 more

6 metrics

Annual production capacity more than 200 GWh SK On worldwide capacity

U.S. production capacity approximately 100 GWh SK On U.S. capacity

Commerce capacity 22 GWh SK On Commerce, Georgia facility

Road-test range over 1,200 km Mercedes-Benz real-world test vehicle

Cell capacity 77 Ah Stellantis laboratory testing

Company launch date October 2021 SK On became an independent company

Historical Context

5 past events · Latest: Jul 24 (Positive)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Jul 24	commercial aerospace order	Positive	-7.1%	First commercial drone battery order from a leading U.S. drone manufacturer
Jul 13	strategic partnership	Positive	-35.6%	Tulip partnership followed flight testing showing increased drone range
Jul 09	fireside chat	Neutral	-4.5%	CEO scheduled investor discussion covering milestones and strategic partnerships
Jun 30	shareholder letter	Positive	+12.0%	Letter detailed partnerships and a capital-light commercialization strategy
Jun 12	financial results filing	Neutral	-11.2%	Super 8-K filing included first-quarter 2026 financial statements

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Factorial declined after four of its five recent news events, including both recent partnership announcements; its shareholder letter was the exception with a positive reaction.

Key Terms

memorandum of understanding, solid-state battery, lithium-ion battery, energy density

4 terms

memorandum of understanding regulatory

"today announced it has signed a Memorandum of Understanding (MOU) with SK On"

A memorandum of understanding (MOU) is a formal agreement between two or more parties that outlines their shared intentions and plans to work together. It acts like a handshake in writing, clarifying each side’s roles and expectations before any official contract is signed. For investors, an MOU signals that parties are serious about collaboration, which can influence future business opportunities and potential growth.

solid-state battery technical

"a global leader in next-generation solid-state battery technology"

A solid-state battery is a type of rechargeable battery that uses a solid material instead of liquid or gel-like substances to store and transfer energy. This design can make batteries safer, more durable, and capable of holding more power in a smaller space. For investors, advancements in solid-state batteries could lead to better-performing electric vehicles and portable electronics, potentially transforming markets and creating new opportunities.

lithium-ion battery technical

"existing lithium-ion battery manufacturing infrastructure could support future development"

A lithium-ion battery is a rechargeable energy cell that stores and releases power by moving lithium ions between two electrodes, like a pump moving water back and forth to hold and deliver energy. Investors care because these batteries power electric vehicles, portable electronics and grid storage, so factors such as cost, energy density, lifespan, and raw-material supply directly affect manufacturing costs, product competitiveness and long-term company profits.

energy density technical

"Factorial’s high energy density batteries enable smaller, lighter batteries"

Energy density measures how much energy is stored in a material or object relative to its size or weight. For example, a small, lightweight battery with high energy density can store a lot of power, making it more efficient and longer-lasting. Investors pay attention to energy density because it influences the performance, cost, and practicality of energy sources and storage solutions.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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BOSTON, July 29, 2026 (GLOBE NEWSWIRE) -- Factorial Energy Inc.(Nasdaq: FAC) (“Factorial” or the “Company”), a global leader in next-generation solid-state battery technology, today announced it has signed a Memorandum of Understanding (MOU) with SK On Co., Ltd. (“SK On”), a leading global battery manufacturer. This partnership brings together Factorial’s advanced cell technology and scale-up expertise with SK On’s extensive global manufacturing network and pilot capabilities.

A key objective of this collaboration is to assess whether and how SK On’s world-class manufacturing footprint and existing lithium-ion battery manufacturing infrastructure could support future development of solid-state battery technologies.

SK On is recognized as a leading global manufacturer of electric vehicle batteries serving automotive OEMs including Hyundai Motor Group, Ford, Volkswagen, and Ferrari. The company has more than 200 GWh of annual production capacity worldwide, including approximately 100 GWh in the United States. Its U.S. manufacturing footprint includes 22 GWh of capacity in Commerce, Georgia, as well as operations in Tennessee.

Under the MOU, Factorial and SK On will jointly evaluate the technical feasibility and manufacturing considerations for Factorial’s FEST^® solid-state battery technologies, drawing on SK On’s battery technology and manufacturing expertise, as well as its global manufacturing capabilities.

The collaboration highlights Factorial’s capital-light approach to industrialization, which is centered on developing batteries that can leverage established manufacturing infrastructure to accelerate the path to industrialization.

“A battery breakthrough only matters if it can be manufactured at scale,” said Siyu Huang, CEO of Factorial. “That is what makes this partnership with SK On so significant. Their manufacturing footprint spans some of the world’s most advanced battery facilities, and their expertise will be critical in shaping how solid-state battery technology integrates into global production ecosystems.”

Factorial’s solid‑state platforms are engineered to serve as the core energy foundation for next‑generation mobility, aerospace systems, and hyperscale data centers. Factorial’s high energy density batteries enable smaller, lighter batteries and deliver system level efficiency required for increasingly demanding missions across land, air, and orbit.

“This collaboration provides an opportunity to evaluate the technical feasibility and manufacturing readiness of solid-state battery technologies, drawing on SK On’s battery technology and manufacturing expertise,” said Ki-soo Park, Head of the Institute of Future Technology at SK On. “SK On will continue to explore collaboration opportunities in next-generation battery technologies.”

Through this collaboration, Factorial and SK On will explore opportunities to support the future development of solid-state battery technologies for mobility and high-performance markets, advancing the next generation of energy storage. This marks Factorial’s manufacturing-focused partnership with a global battery producer, reflecting the company’s strategy of scaling through established manufacturing ecosystems.

The MOU is non-binding, except for certain customary binding provisions. The terms of the collaboration are expected to be set forth in definitive binding agreements.

About Factorial Energy
Factorial Energy (Nasdaq: FAC) is a leading American solid-state battery innovator backed by IQT – the not-for-profit strategic investor for the U.S. national security community and America’s allies – and Mercedes-Benz, Stellantis, Hyundai, and Kia. Through its proprietary FEST^® and Solstice™ platforms, engineered for scalable manufacturing, Factorial delivers industry-leading performance across aerospace, energy storage and mobility applications. Mercedes-Benz’ real-world road testing in a lightly modified test vehicle achieved over 1,200 km of range on a single charge, while Stellantis-lab testing verified 77 Ah cells demonstrating high energy density, fast-charging, and robust use for energy and power performance across temperature extremes, with the technology successfully integrated into a fully built Dodge Charger Daytona demonstration vehicle. For more information, visit www.factorialenergy.com.

About SK On
SK On is a global leading battery and trading company committed to technological innovation for a better, sustainable future. SK On was launched as an independent company in October 2021 after SK Innovation, South Korea’s largest energy company, decided to split off its battery business unit. SK On aims to accelerate the green energy transition by leveraging its global production base and R&D capabilities, as well as its production and quality management know-how.

Headquartered in Seoul, South Korea, SK On has a worldwide presence with battery plants currently operating or in construction across the United States, Europe, and Asia. For more information, visit: http://eng.sk-on.com/

Forward-Looking Statements
Certain statements in this communication may be considered “forward-looking statements.” Forward-looking statements herein generally relate to future events or the future financial or operating performance of Factorial Energy Inc. For example, expectations regarding future financial performance, the timing of financial disclosures, manufacturing capabilities and operations, business plans, and other projections concerning key performance metrics or milestones are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may,” “should,” “expect,” “intend,” “will,” “estimate,” “anticipate,” “believe,” “predict,” “project,” “target,” “plan,” “potentially,” or the negatives of these terms or variations of them or similar terminology. Such forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. While Factorial may elect to update such forward-looking statements in the future, it disclaims any obligation to do so.

Factorial Media Contact: Factorial@antennagroup.com
SK On Media Contact: dahee.kim@sk.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/6d6495c7-3bd7-40ff-9d39-08bc9ba5022c

FAQ

What is the new collaboration between Factorial Energy (FAC) and SK On about?

Factorial Energy and SK On signed a non-binding MOU to evaluate manufacturing for FEST® solid-state batteries. According to Factorial, the companies will jointly study technical feasibility and production using SK On’s global lithium-ion manufacturing infrastructure and expertise.

Is the Factorial Energy (FAC) and SK On solid-state battery MOU legally binding?

The MOU between Factorial Energy and SK On is non-binding, except for customary provisions. According to Factorial, detailed and enforceable collaboration terms are expected to be set out later in definitive binding agreements, if the parties proceed.

How much battery production capacity does SK On bring to its MOU with Factorial Energy (FAC)?

SK On contributes more than 200 GWh of annual battery production capacity worldwide to this collaboration. According to Factorial, about 100 GWh of that capacity is in the United States, including 22 GWh in Commerce, Georgia, plus additional U.S. operations.

What technologies are being evaluated under the Factorial Energy (FAC) and SK On MOU?

The MOU focuses on Factorial’s FEST® solid-state battery technologies and related manufacturing considerations. According to Factorial, the companies will assess technical feasibility and how these high energy density batteries could be produced using SK On’s existing lithium-ion manufacturing infrastructure.

How does the Factorial Energy (FAC) and SK On MOU support Factorial’s capital-light strategy?

The MOU supports Factorial’s strategy by exploring use of SK On’s established manufacturing assets rather than building new plants. According to Factorial, leveraging existing lithium-ion infrastructure may help accelerate future solid-state battery industrialization while limiting direct factory investment.

Which markets could benefit from Factorial Energy (FAC) and SK On’s solid-state battery evaluation?

The collaboration targets future development of solid-state batteries for mobility and high-performance markets. According to Factorial, its solid-state platforms are engineered for next-generation automotive, aerospace systems, and hyperscale data centers requiring high energy density and system-level efficiency.