Factorial Energy Inc. (Nasdaq: FAC) announced it has signed a non-binding Memorandum of Understanding with SK On Co., Ltd. to jointly evaluate the technical feasibility and manufacturing considerations for Factorial's FEST® solid-state battery technologies.

Under the agreement, the two companies will assess whether SK On's existing lithium-ion battery manufacturing infrastructure could support future development of solid-state battery technologies. SK On operates more than 200 GWh of annual production capacity worldwide, including approximately 100 GWh in the United States, with facilities in Commerce, Georgia, and Tennessee. The company supplies electric vehicle batteries to Hyundai Motor Group, Ford, Volkswagen, and Ferrari.

"A battery breakthrough only matters if it can be manufactured at scale," said Siyu Huang, CEO of Factorial. "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."

Ki-soo Park, Head of the Institute of Future Technology at SK On, said the collaboration provides an opportunity to evaluate the technical feasibility and manufacturing readiness of solid-state battery technologies, adding that SK On will continue to explore collaboration opportunities in next-generation battery technologies.

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