Seoul: POSCO Future M, the battery materials unit of South Korean steelmaker POSCO Holdings Inc., announced its investment in U.S. battery firm Factorial Inc. to collaborate on the development of all-solid-state batteries (ASBs). This strategic move is designed to assist Factorial in commercializing ASBs and to help POSCO Future M establish a strong presence in the next-generation battery market, as stated in a company press release.
According to Yonhap News Agency, the exact amount of the investment has not been disclosed. The press release noted that this investment will enable POSCO Future M to prepare for significant growth in the ASB market while ensuring Factorial has a stable supply of battery materials.
Factorial, based in Massachusetts and a key player in the ASB industry, is preparing for an initial public offering (IPO) on the U.S. stock market. The company currently runs a pilot ASB production facility in Cheonan, located approximately 87 kilometers south of Seoul.
ASBs are considered next-generation batteries as they use solid electrolytes instead of liquid ones, which reduces fire risks and enhances the driving range of electric vehicles. These batteries are seen as potential transformative elements in the battery industry.
POSCO Future M indicated that the ASB materials under development are expected to be applicable not only to autonomous electric vehicles and urban air mobility (UAM) but also to physical artificial intelligence (AI) technologies, including humanoid robots and other robotics applications.
The physical AI market is anticipated to grow at an average annual rate of 23 percent, reaching 94 trillion won (US$64.3 billion) in 2030, up from 7 trillion won in 2020, as reported by global market research firm Statista.
POSCO Future M, which currently produces cathode materials for nickel-cobalt-manganese (NCM) and nickel-cobalt-manganese-aluminum (NCMA) batteries, plans to broaden its product offerings to include lithium iron phosphate (LFP), ASBs, and lithium manganese-rich (LMR) batteries.