Stellantis takes 9.5% stake in newly public battery maker Factorial Energy, filing shows

A regulatory filing has revealed that Stellantis holds a 9.5% stake in Factorial Energy, the solid-state battery developer it has been working with, cementing the automaker's financial commitment to a technology many see as central to the next phase of electric vehicles. The disclosure deepens an already close partnership just days after the two companies began road-testing solid-state cells in a development car.

According to the filing, Stellantis, acting through its European arm and its venture investment unit, beneficially owns roughly 8.67 million shares of Factorial Energy's Series A common stock, equal to 9.5% of that class. The position did not come from a fresh cash purchase but from the conversion of earlier investments, preferred stock, warrants and a $2 million secured convertible note, into common equity when Factorial completed a business combination on June 5. That transaction, in which the legacy private company merged with a listed shell, took Factorial public on the Nasdaq and crystallized the holdings of its strategic backers.

The stake comes with influence beyond the shares themselves. Stellantis secured a seat on Factorial's board, with a senior executive from its financial-services division joining the directors, giving the carmaker a direct voice in governance alongside its minority position. The shares are subject to staggered lock-up restrictions that limit sales over roughly the first year, releasing in tranches, and Stellantis also obtained rights to register the stock for future resale.

Notably, Stellantis is not the only automaker on the register. Mercedes-Benz disclosed a comparable holding of about 8.1%, underscoring how two of Europe's largest carmakers have placed parallel bets on the same battery developer as they race to lock in supplies of advanced cells. The presence of multiple marquee automotive investors lends weight to Factorial's commercialization push and highlights the strategic scramble to control next-generation battery technology.

The filing landed in the wake of a tangible technical milestone. Earlier in June, Stellantis and Factorial integrated the startup's solid-state cells into a Dodge Charger Daytona development vehicle and launched a road-testing and calibration program, the first such automotive application of the technology for the carmaker in North America. The cells, based on Factorial's proprietary chemistry, had previously demonstrated an energy density of 375 watt-hours per kilogram and the ability to charge from 15% to 90% in about 18 minutes, figures that point to meaningful gains in range and charging speed if they can be reliably scaled into production vehicles.

For Stellantis, the equity stake is part of a broader strategic transition that has been unfolding against a difficult backdrop for its shares, which have fallen sharply over the past year. The company has laid out a multiyear plan to lift revenue substantially by the end of the decade and has leaned on innovation milestones to support that narrative, even as investors have remained skeptical amid intense competition and a brutal price environment in the global auto market.

Solid-state batteries are widely viewed as a potential breakthrough for electric vehicles, promising higher energy density, faster charging and improved safety compared with today's lithium-ion packs, though questions about cost and large-scale manufacturing remain. By converting its earlier financial support into a sizable equity position with board representation, Stellantis has signaled that it intends to be more than a customer of that technology, positioning itself to share in the upside if Factorial succeeds in bringing solid-state cells to the mass market.