Mercedes-Benz Group AG and U.S. battery startup Factorial are joining forces to advance solid-state battery technology, with plans to significantly enhance electric vehicle (EV) range and aim for production readiness by the end of the decade. The new battery, named Solstice, promises to boost EV range by approximately 80% compared to today's average, boasting an energy density of 450 Watt-hours per kilogram.

Solid-state batteries are anticipated to revolutionize the EV market by offering increased safety, reduced fire risk, and lighter, more cost-effective vehicles that can travel further on a single charge. However, scaling up this technology has proven challenging for automakers and battery manufacturers.

Factorial's quasi-solid-state batteries are already undergoing testing by Mercedes and other automakers, with expectations to appear in EVs by 2026. The company raised $200 million in 2022, with investments from Mercedes, Stellantis, and Hyundai.

The key advantage of solid-state batteries lies in replacing liquid electrolytes with solid alternatives, which can reduce fire risks and eliminate the need for heavy cooling systems. This innovation could lead to lower overall vehicle costs by reducing battery pack size and weight.

Mercedes' Chief Technology Officer Markus Schaefer indicated that Factorial's solid-state batteries could deliver a 40% improvement in energy density over current high-performance batteries. This advancement could allow for either smaller battery packs or longer-range EVs. The reduction in battery weight also opens the possibility of using more affordable materials, such as steel, in vehicle production.