Factorial nabs $200M as automakers debate future of EV batteries

The question of how to power the coming wave of electric vehicles continues to divide automakers, who have spread their bets ranging from low-cost lithium-ion batteries to yet-unproven solid-state technology.
 

• Solid-state battery maker Factorial Energy has raised $200 million in Series D funding led by automakers Mercedes-Benz and Stellantis, which it will use in part to build a production facility in New England.
   
• Other automakers betting on a solid-state future include BMW and Ford, which invested in Solid Power last year, as well as VW, which has backed QuantumScape. Shares of both QuantumScape and Solid Power have fallen significantly following SPAC mergers in late 2020 and 2021, respectively.
   
• Meanwhile, cheaper lithium iron phosphate batteries, a type of lithium-ion battery, now account for a majority of EV batteries in China, The Wall Street Journal reported. They will also soon be used in all of Tesla's standard-range cars.
   
• Solid-state batteries can store more energy, charge faster and are safer than lithium-ion batteries. But they face technical hurdles and may not enter production for several years.
   
• EV battery technology attracted more than $6 billion, or about 41% of global VC investment in the electric transportation segment, in the first nine months of 2021, according to PitchBook data.

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