Solid-state battery developer Factorial to go public via SPAC Merger
In early December, the Israeli battery start-up StoreDot, which develops technology for ultra-fast-charging electric vehicle batteries, announced its merger with a SPAC to list on the stock exchange. A SPAC, or Special Purpose Acquisition Company, is a firm created solely to acquire another company and is already listed on the stock exchange.
Factorial is now following the same path and has announced an agreement to merge with a SPAC called Cartesian Growth Corporation III to accelerate the commercialisation of its solid-state battery technology. This merger will enable Factorial to significantly expand its capital base, providing up to $376 million USD to fuel its growth.
This figure includes $100 million US dollars in new capital committed by institutional investors through a private placement of ordinary shares (PIPE). It also comprises $276 million USD held in a trust fund by Cartesian Growth Corporation III, though part of this may need to be refunded to investors who, for example, do not approve of the merger with Factorial.
Target valuation of $1.5 billion dollars
Factorial’s pre-money valuation is approximately $1.1 bn prior to the merger. If no refunds are made from the trust fund of Cartesian Growth Corporation III, the merger would result in a total valuation of around $1.5 bn US dollars for the combined company.
“This agreement marks a pivotal inflection point in our progression from proven technology to broad commercial deployment across multiple industries,” said Dr. Siyu Huang, Co-Founder and CEO of Factorial. “We’ve proven our solid-state platform delivers what customers want – longer range, lighter weight, and greater cost efficiency. A Nasdaq listing is expected to provide the capital and enhanced visibility to drive commercial adoption of our transformative products.”
Mercedes, Stellantis, and Hyundai are investors
Factorial is far from an unknown start-up: the company, based near Boston, has already secured Mercedes-Benz, Stellantisy Hyundai-Kia as strategic partners and investors. All three automotive groups plan to use Factorial’s high-performance, lightweight solid-state batteries in future electric vehicles, which are expected to enable a range of over 1,200 kilometres. Additionally, Factorial’s solid-state batteries are designed for applications in defence, aerospace, robotics, and industrial sectors.
The merger is expected to be completed by mid-2026, with the combined company set to list on the Nasdaq under the ticker symbol FAC. Unlike a traditional IPO (Initial Public Offering), a SPAC merger does not involve a public offering of the company’s shares. In Factorial’s case, only a private placement with institutional investors (as mentioned above under PIPE) is being conducted. However, following the merger with the SPAC, Factorial’s shares will be freely tradable on the Nasdaq for any interested investor.
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