Factorial Energy (FAC) Investor presentation summary

Market opportunity and industry context

• Global battery demand surpassed 1 TWh in 2024 and is projected to reach 5 TWh by 2030, driven by electrification, AI, and national security needs.

• Conventional lithium-ion batteries are reaching their energy density limits, creating demand for next-generation solutions.

• Solid-state batteries offer up to 80% higher energy density and up to 50% weight reduction, enabling longer range and lighter vehicles.

• Early adoption is seen in defense, robotics, and high-performance automotive sectors, with applications expanding to energy storage and AI.

• Market validation includes partnerships with major OEMs and successful real-world demonstrations.

Technology and product validation

• Proprietary solid-state battery technology (FEST® and Solstice) validated in road and flight tests, including a 1,205 km drive by a Mercedes EQS and a 521-minute drone flight.

• FEST® cells are compatible with 80% of conventional Li-ion manufacturing equipment, supporting capital-light scaling.

• Achieved >85% yield in pilot manufacturing, with IATF 16949 and ISO45001 certifications for quality and safety.

• Demonstrated up to 30% longer range and 20% weight reduction in UAVs compared to traditional batteries.

• First solid-state battery production program for passenger vehicles launched in the U.S. with Karma Automotive.

Business model and partnerships

• Capital-light model leverages joint manufacturing, IP licensing, and material supply agreements with global partners.

• Strategic partnerships with Mercedes-Benz, Stellantis, Hyundai, Kia, and others, representing 26% of US and Europe EV market share.

• Investment from IQT, Philenergy, and POSCO Future M supports expansion into UAVs, robotics, and critical infrastructure.

• Blue-chip partners and supply agreements drive resilience and global scale.

• Immediate revenue from high-margin applications, with long-term growth in automotive, defense, AI, and energy storage.