Synergistic Benefits Expected from POSCO Future M’s Materials Technology and Factorial’s Network of Automakers in Korea, Europe, and North America

Explosive Growth in All-Solid-State Battery Applications Expected in Next-Generation Mobility as well as Physical AI Markets, including Humanoids

POSCO Future M is investing in Factorial, a US-based all-solid-state battery company, to lead the future battery market.

POSCO Future M signed an investment agreement with Factorial Inc. on January 7th and completed the investment payment on 26th. This further strengthens their partnership, following the MOU signed by the two companies in November of last year for the development of all-solid-state battery technology.

Through this investment, POSCO Future M plans to prepare for the explosive growth of the all-solid-state battery market, while Factorial will secure a stable supply of high-quality all-solid-state battery materials and strengthen its battery manufacturing competitiveness.

Hong Young-Jun, Head of Technology Research Laboratory, stated, “Both companies have developed materials technology through a close and continuous partnership. This further developed partnership will enable us to secure unrivaled competitiveness in line with the rapidly growing all-solid-state battery market.”

Factorial, a leader in the all-solid-state battery industry headquartered in Massachusetts, is pursuing an IPO on the US stock market. In Korea, it operates a pilot plant for all-solid-state batteries in Cheonan, South Chungcheong Province, and is actively expanding its business.

Factorial’s all-solid-state battery platform, Solstice, is known for its superior energy density and safety. Based on this leading technology, it has established partnerships with major automakers in Korea, Europe, and North America. The combination of Factorial’s network competitiveness and POSCO Future M’s materials technology is expected to generate synergy in the future partnership between the two companies.

All-solid-state batteries, which utilize solid electrolytes instead of conventional liquid electrolytes, offer superior energy density and safety, drawing attention as a game changer in the battery market. POSCO Future M has been conducting sample testing of all-solid-state battery cathode materials with Factorial, and among many materials suppliers, POSCO Future M’s materials have been evaluated as superior in terms of quality, including output characteristics.

The all-solid-state battery materials currently being developed by POSCO Future M are expected to find significant applications in next-generation mobility, such as autonomous electric vehicles and urban air mobility (UAM), as well as in physical AI markets, such as humanoids and robotics.

According to global market research firm Statista, the physical AI market is projected to grow from $5 billion (approximately 7 trillion won) in 2020 to $64.3 billion (approximately 94 trillion won) in 2030, at a compound annual growth rate of 23.3%. Morgan Stanley projects the global humanoid market to reach $5 trillion (approximately 7,000 trillion won) by 2050, exceeding the semiconductor market by six times by 2025.

POSCO Future M possesses material design and coating technologies optimized for all-solid-state batteries. As part of the POSCO Group, the company is continuously expanding its portfolio of all-solid-state battery materials, including sulfide-based solid electrolytes and silicon and lithium metal anode materials with superior energy storage capacity.

▲ An employee at POSCO Future M’s Technology Research Laboratory in Sejong operates pilot equipment for cathode material trial production.

▲ Aerial view of POSCO Future M’s Pohang cathode material plant

In sample testing of materials from multiple suppliers, POSCO Future M demonstrated good rate capability.

Synergy expected between POSCO Future M’s competitiveness in cathode/anode materials and Factorial’s battery cell technology

POSCO Future M, a leading battery materials supplier, and Factorial Inc. (Factorial), a leader in solid-state battery technology, signed a Memorandum of Understanding (MOU, for the development of all-solid-state battery technology.

The MOU signing ceremony which took place on November 25 at the Future Battery Forum in Berlin, was attended by POSCO Future M Head of Technology Research Laboratory Hong Young-Jun and Factorial CEO Siyu Huang, along with executives from both companies.

Under the MOU, the two companies plan to explore cooperation in developing materials for all-solid-state batteries, which are powering progress in next-generation industries such as electric vehicles, robotics, energy storage systems and more. All-solid-state batteries use solid electrolytes instead of liquid between the cathode and anode, offering higher safety, superior energy density, and excellent charging performance compared to conventional lithium-ion batteries.

Factorial decided to sign the MOU after testing cathode material samples for all-solid-state batteries and concluding that POSCO Future M’s materials demonstrated good rate capability.

Through this MOU, POSCO Future M aims to further strengthen its competitiveness in the all-solid-state battery materials business. The company is currently conducting R&D on cathode materials for all-solid-state batteries, and silicon anode materials.

POSCO Future M Head of Technology Research Laboratory Hong Young-Jun said, “We expect synergy in the next-generation all-solid-state battery business based on Factorial’s battery technology and market presence with global automakers, and POSCO Future M’s competitiveness in cathode and anode materials.”

“Solid-state batteries are entering a new era of commercial readiness,” said Siyu Huang, CEO of Factorial. “We expect work with POSCO Future M to not only accelerate innovation in critical cathode and anode materials, but also strengthen a resilient global supply chain and drive meaningful cost reductions at scale.”

Factorial, headquartered in Massachusetts, USA, has a global footprint with pilot manufacturing operations in Cheonan, Chungnam, South Korea.

Meanwhile, POSCO Future M plans to build a product portfolio of cathode and anode materials covering entry-level, standard, and premium electric vehicles through continuous R&D, preparing to supply customized products to customers. The company will also actively pursue the development of next-generation materials to lead the future mobility industry, while the POSCO Group is also continuing R&D on lithium metal anode materials and sulfide-based solid electrolytes.

▲ POSCO Future M signed an MOU with U.S. all-solid-state battery company Factorial Energy to develop all-solid-state battery technology at the Future Battery Forum held in Berlin, Germany on the 25th of last month. (From left, Hong Young-jun, head of POSCO Future M Technology Research Institute, and Siyu Huang, CEO of Factorial Energy).

As competition to develop all-solid-state battery technology has become more intense worldwide, POSCO Group is also actively researching and developing raw and key materials for all-solid-state batteries. POSCO N.EX.T Hub is where R&D is carried out. So! Announcer Hyun-jung Choi went to POSCO N.EX.T Hub Senior researcher Oh-min Kwon, an expert in all-solid-state batteries, and talked about all-solid-state batteries, which become more fascinating as you learn more about them. Anyone curious about the all-solid-state battery core material business that the POSCO Group is preparing should pay close attention. It starts right now!

What is the difference between all-solid-state batteries and lithium-ion batteries?

Do you know what type of rechargeable battery is most commonly used in electric vehicles today? It is a lithium-ion battery. Among the components of lithium-ion batteries, the electrolyte, which helps lithium ions move smoothly between the cathode and anode, is made of liquid. Since the liquid electrolyte contains a flammable organic solvent, there is a high risk of fire or explosion in high-temperature environments or external impact situations.

The separator acts as a shield that prevents direct contact between the cathode and anode, and the lithium-ion battery separators are made of polymer, which is the main material of vinyl bags that we see everywhere in our daily lives. Just as vinyl bags shrink and disappear when heated, the lithium-ion battery separator can also be damaged when heated, and it causes a short circuit* between the cathode and anode.

*Short circuit: A phenomenon in which two points in an electric circuit are connected due to poor insulation between the two points

All-solid-state batteries replace the liquid electrolytes used in conventional lithium-ion batteries with a solid electrolyte. Unlike the polymer separator of a lithium-ion battery, which is made of polymer with low rigidity, the solid separator is made of ceramics with high rigidity. Moreover, it is non-volatile and has a high flash point, so it maintains its shape well even when heated, which keeps it safe from fire.

Improved safety simplifies the heat management system, such as the external case or cooling device in the battery, so it features higher energy density in the battery pack unit. Improved energy density can significantly increase the range of electric vehicles driving on a single charge. In addition, it makes it possible to use materials such as lithium metal anodes, silicon anodes, and silver/carbon nanocomposite anodes, which were previously unusable due to high risk in lithium-ion batteries. The energy density is expected to increase by nearly 10 times compared to existing graphite anode materials. That explains why all-solid-state batteries have become the next-generation batteries for the transition from internal combustion engine vehicles to electric vehicles.

For those who cannot understand by explanation alone, Senior researcher Kwon brought all-solid-state battery samples produced by the POSCO Group and conducted a performance test. First, before we see the results! Let’s look at the specifications of POSCO Group’s all-solid-state batteries more closely.

Specifications of POSCO Group’s all-solid-state batteries

He connected the cathode and anode to a battery that looked like a thin piece of paper at first glance, made it light up, and then cut the surface of the battery with scissors. Will the light still be on even if it is cut?

Like magic, the light does not go out even when the battery is cut in half. The secret behind this is that the solid electrolyte of the all-solid-state battery, with high rigidity, acts as a separator and remains intact even with external shocks. If the inside of the battery was filled with a liquid electrolyte, the separator would have been damaged and caused the electrolyte to leak and be oxidized, and the battery would eventually stop functioning properly. That is why everyone recognizes all-solid-state batteries to be the next-generation battery leader.

So, what are the types of solid electrolytes for all-solid-state batteries? The solid electrolytes used in all-solid-state batteries are divided into three types: sulfide, polymer, and oxide. Sulfide solid electrolytes have the highest potential for commercialization in electric vehicles since their relatively soft characteristics form a wide interface between the electrode and electrolyte, resulting in high lithium-ion conductivity. Therefore, it has gained the attention of many companies worldwide.

Three key raw materials are needed to make a solid electrolyte: lithium sulfide, phosphorus pentasulfide, and lithium chloride. These three raw materials are mixed evenly to form an argyrodite (a rare mineral of silver, germanium, and sulfur) by synthesis. What is important is for the synthesis to form the appropriate solid electrolyte particle size. The solid electrolyte is completed by controlling the particle size through the crushing* and disintegration** processes.

*Crushing: The process of breaking a solid object into small pieces
**Disintegration: The process of separating clumped particles into the original individual particles

Status of POSCO Group’s all-solid-state battery material business

Did you know that POSCO Group is focusing its business on sulfide solid electrolytes to take a leading position in the all-solid-state battery market? POSCO Holdings is developing high-ion conductive materials and technology to form moisture-stable solid electrolytes. The internal testing of the prototype showed that it can achieve a battery performance equivalent to that of lithium-ion batteries.

In February 2022, it acquired a 40% equity share of Jeongkwan Co., Ltd., a display material and part specialist, to establish a joint venture called POSCO JK Solid Solutions, and completed the construction of a factor capable to producing 24 tons of sulfide-based solid electrolyte per year. The plant recently applied a new process technology and is preparing a phased expansion of the production capacity to 7,200 tons. It is currently conducting an all-solid-state battery test with various customers.

▲POSCO Group’s lithium production demonstration plant and brine storage facility in Argentina.

POSCO Group is the only Korean company that produces lithium brine, ore, hydroxide, and carbonate. Moreover, POSCO Group is actively researching and developing high-value-added lithium compounds. Since lithium compounds such as lithium sulfide and lithium chloride are essential to produce solid electrolytes, POSCO Group, which has lithium production infrastructure, is considered to have considerable competitiveness in the sulfide-based electrolyte business.

All-solid-state batteries will overcome the limitations of lithium-ion batteries, and solid electrolyte is their key material. In addition to solid electrolytes, POSCO Group also has the competitiveness to mass-produce lithium metal anode materials, which are important materials for all-solid-state batteries. With our differentiated competitiveness, we plan to leap forward as an innovative company in the rapidly changing rechargeable battery material market. If you want to know more, please watch the full version of the video on YouTube.

▼Check out POSCO Group’s solid electrolyte technology competitiveness in the video!

The trends in POSCO Group’s flagship business area are explained by experts in an easy-to-understand manner. In Part 4, we review the issue concerning “all-solid-state batteries,” which are expected to be next-generation batteries, with Principal Researcher Jae-beom Park at the POSCO Research Institute.

Batteries are mainly divided into primary and rechargeable batteries. Primary batteries, including dry cells and mercury batteries, cannot be recharged after use. On the other hand, rechargeable batteries can be recharged and used multiple times, so they are more environmentally friendly and economically efficient. There are many types of batteries, but the most commonly used rechargeable battery is the lithium-ion battery (LIB).

Compared to other rechargeable batteries, lithium-ion batteries are used in various applications that take advantage of their superior features in all aspects, including lifespan, ease of charging, discharge rate, and costs. In particular, they are widely used in electric vehicles and mobility devices that require long operating range on a single charge due to their high energy density.

However, even LIB, which is considered the most ideal commercial rechargeable battery to date, requires continuous improvement and supplementation in terms of energy density, price, and stability. To understand why, it is necessary to look at how LIB works.

The four core components of an LIB are cathode material, anode material, electrolyte, and separator. Among them, the electrolyte acts as an important medium that helps lithium ions move smoothly between the anode and cathode materials. Since one of the main components of the electrolyte is a flammable organic solvent, there is a risk of fire or explosion in high-temperature environments or external impact situations. To solve this problem, the performance of materials such as anode and cathode materials or electrolytes can be improved, but the ultimate solution is to change the battery type. Post-LIB or next-generation batteries, such as all-solid-state batteries, lithium-sulfur batteries, and sodium-ion batteries, have emerged as solutions, and all-solid-state batteries, which are called dream batteries for dramatically improved energy density and stability, have recently received the spotlight worldwide.

The biggest difference between all-solid-state and lithium-ion batteries is the form of the electrolyte. An all-solid-state battery replaces liquid electrolyte in an LIB with a solid powder. The replacement not only changes the shape but also other LIB materials significantly. It eliminates a separator that prevents direct contact between the anode and cathode during the movement of lithium ions, as the solid electrolyte acts as a separator.

Stability

All-solid-state batteries have many advantages, and stability is the leading example. Since the electrolytes in LIBs are made of flammable organic solvents (liquid), there is a high risk of fire or explosion when the separator that blocks contact between the anode and cathode materials melts due to heat or is damaged for various reasons. However, the solid electrolyte of an all-solid-state battery acts as a separator and more effectively blocks contact between the anode and cathode materials. Therefore, it reduces the risk of fire or explosion. Moreover, the risk of leakage or oxidation due to temperature change or external impact is lower. This means reduced maintenance costs due to excellent ease of use and durability.

Higher energy density

Improved safety helps simplify battery external cases and cooling devices and naturally achieves higher energy density. If the cooling system components can be minimized, the remaining space can be used for battery cells. It will allow improved energy density per battery pack. Moreover, lithium, which has the largest energy capacity among the candidates as an anode material, can theoretically increase the energy density by up to nearly 10 times compared to conventional graphite-based anode materials. Therefore, if we can solve the safety problem of the lithium metal anode material, which is called the ultimate, next-generation anode material, and commercialize it, we can expect to dramatically improve energy density.

Coping with temperature change better

Another big advantage of changing liquid electrolytes to solids is their lower sensitivity to temperature, which allows them to operate over a wider range of temperatures. Conventional lithium-ion batteries mainly operate smoothly between -10°C and 40°C because the ion conductivity* decreases significantly at low temperatures below -10°C, and the risk of thermal runaway increases at high temperatures. On the other hand, all-solid-state batteries operate without problems in a wide temperature range of -40°C to 100°C. Therefore, they can improve the risk of battery discharge in winter or fire caused by high temperatures and can also significantly reduce the need for cooling devices to dissipate heat.
*Ionic conductivity: The degree to which ions contribute to equivalent electrical conductivity in an infinite dilution state

Simplified processes and cost reduction

While conventional lithium-ion batteries have a monopolar structure in which a cell has one electrode, all-solid-state batteries can be converted into a bipolar structure in which multiple electrodes are connected in series in a cell. The bipolar structure increases the voltage of the battery by stacking multiple electrodes in a cell, thus increasing the output. Moreover, we simplify processes, increase space utilization, and reduce costs by minimizing the BMS* for external material cooling systems.

*Battery Management System (BMS): A system that monitors the battery status and controls it to maintain the optimal conditions for use

Solid electrolytes used in all-solid-state batteries are largely divided into organic and inorganic types. The sulfide-based type is most likely to be commercialized for electric vehicles, and has attracted the attention of many companies. Sulfide-based materials are relatively soft and form a wide interface* between the electrode and electrolyte, resulting in high lithium ion conductivity.

Various structures depend on the presence of a crystalline structure, even within sulfide-based materials. In particular, solid electrolytes with a structure of LGPS (Li₁₀GeP₂S₁₂) or argyrodite (Li₆PS₅CL), a rare sulfide mineral containing germanium, are known to be able to implement ionic conductivities similar to or higher than the ionic conductivities of general liquid electrolytes (5–10 mS/cm).

*Interface: The boundary between two spatial regions occupied by different substances or physical states of matter

※ Ionic conductivity : LGPS (Li₁₀GeP₂S₁₂) 12~25mS/cm, Argyrodite(Li₆PS₅CL) 2~12mS/cm

Many companies are actively conducting R&D to create a more perfect all-solid-state battery. While it varies by company, ternary cathode materials* are likely to be the most active cathode material. For anode materials, a transition has occurred from the commonly used graphite-based materials to silicon-based materials, and eventually to lithium metal anodes, which offer higher energy density per volume and weight. Therefore, the material composition of an all-solid-state battery with high commercialization potential is the ternary cathode-sulfide solid electrolyte-lithium metal anode.

*Ternary cathode material: A cathode material in which other elements are added to lithium cobalt oxide (LCO), which is mainly used as a cathode material, for a total of three elements. It is divided into nickel-cobalt-manganese (NCM) and nickel-cobalt-aluminum (NCA).

Leading companies have already announced plans to commercialize all-solid-state batteries by 2027, and they plan to mass produce them by 2030 at the latest. The fact that the original patent related to the composition of sulfide-based argyrodite solid electrolyte, which is considered to have the most commercialization potential, will expire in 2028 is also expected to affect the timing of commercialization.

The University of Siegen in Germany filed a PCT patent application for a sulfide-based source patent in 2008. The patent was later transferred to another company, which now holds the intellectual property rights. When the patent expires in 2028, 20 years from the date of application, many companies are likely to begin mass production of solid electrolytes.

Some companies are also preparing semi-solid-state batteries. Semi-solid-state batteries use gel-type electrolytes that are an intermediate form between liquid and solid. They are being developed to complement the shortcomings of liquid and solid electrolytes and leverage their advantages. Since they can utilize most of the processes of conventional lithium-ion batteries, the technology can be considered a stepping stone before the full-scale transition to all-solid-state batteries.

In addition to technical issues to overcome, such as low ion conductivity and high interface resistance, other important challenges include securing mass production and price competitiveness similar to that of lithium-ion batteries.

The price of the solid electrolyte for all-solid-state batteries is USD 1000/kWh, and excluding other materials, the price significantly exceeds the current price of lithium-ion batteries. This is because lithium sulfide, the core of solid electrolytes, is currently manufactured in labs and pilot lines, and the economy of scale, where the average prices drop as production increases, has yet to be realized.

However, the hope is that, except for some electrolytes that contain rare earth elements such as germanium, the raw material price of general solid electrolytes is around USD 10/kg. In other words, if the production volume can be increased with improved processes, the market price is expected to drop to USD 30/kWh. Reducing the price of solid electrolytes and lithium sulfide and overcoming technical issues are important prerequisites for popularizing all-solid-state batteries.

To secure competitiveness in the solid electrolyte business, a key material for all-solid-state batteries, POSCO Group took a 40% stake in Jeongkwan Co., a display materials and parts company, established POSCO JK Solid Solutions as a joint venture in February 2022, and completed the construction of a product plant capable of mass producing 24 tons of sulfide-based electrolytes per year. POSCO JK Solid Solutions is currently preparing for a gradual expansion to eventually increase production volume to 7,200 tons and is conducting tests on all-solid-state battery products with key customers.

Overseas, POSCO invested equity in ProLogium Technology, an all-solid-state battery manufacturer established in Taiwan in 2006, and has expanded the supply chain for all-solid-state battery materials after signing a joint research agreement. Moreover, it is considering various business plans to secure the supply chain for lithium sulfide (Li2S), a key raw material for sulfide-based solid electrolytes.

POSCO Group also has the competitiveness to mass-produce lithium metal cathode materials, which are as important as solid electrolytes in all-solid-state batteries. Since it owns a salt lake in Argentina with high purity and low impurities, it has the advantage of increasing the purity and removing impurities using lithium as an anode material. POSCO is recognized as having the world’s top level technology for lithium purification.

Lithium metal manufacturing requires an ultra-thin and wide production process to economically apply to rechargeable batteries for electric vehicles. The roll-to-roll process, POSCO’s original technology accumulated through rolling and plating processes, is ideal for making the lithium anode ultra-thin and wide. To secure differentiated competitiveness, POSCO plans to apply the process to lithium metal production. It is currently providing samples and conducting tests of lithium metal products using the electroplating method.

POSCO Group is building a full lineup by concentrating its differentiated technologies to secure competitiveness in raw materials for all-solid-state batteries, considered representative next-generation batteries. It plans to continue its efforts to create new added value by responding to the changing global market environment.