Factorial Energy (FAC) Investor presentation summary

Market opportunity and industry context

• Global battery demand is projected to grow fivefold from 2024 to 2030, surpassing 5 TWh, 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 50% weight reduction, enabling longer range and lighter vehicles.

• Early adoption is seen in defense, robotics, and high-performance drones, with expansion into automotive and energy storage sectors.

• The global UAS market is expected to reach $36.1 billion by 2028, highlighting growth in non-automotive applications.

Technology and product validation

• Proprietary solid-state battery technology is protected by over 150 patents and applications.

• FEST® technology is compatible with 80% of conventional lithium-ion manufacturing equipment, enabling capital-light scaling.

• Products have been validated and delivered to major automotive OEMs, with active road tests and real-world demonstrations, including a 1,205 km drive on a single charge.

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

• Demonstrated up to 50% longer driving range and $3,500 per vehicle value creation for OEMs.

Strategic partnerships and business model

• Partnerships with Mercedes-Benz, Stellantis, Hyundai, and Kia, representing 26% market share in US and Europe.

• Backed by strategic investors including In-Q-Tel, Philenergy, and POSCO Future M, supporting expansion into UAVs and robotics.

• Joint manufacturing and IP licensing model leverages partner capex for rapid, capital-light growth.

• Supply chain and manufacturing processes are optimized for cost efficiency and high yield, with more than 85% pilot line yield.

• Business model includes technology licensing, material supply, and direct manufacturing/sales of battery cells.