Key points
- Factorial Energy has completed its business combination with Cartesian Growth Corporation III, launching on the Nasdaq stock exchange with the stock symbol FAC.
- FAC shares finished 16% higher at $13.80 during the opening trading session
- This deal generated more than $100 million in development capital and placed a valuation for the company at approximately $1.3 billion.
- The battery technology company has secured early partnerships with major automakers including Mercedes-Benz, Hyundai and Kia
- The Karma supercar’s initial commercial batteries are scheduled to be shipped between 2027 and 2028, with the defense and aerospace sectors identified as immediate revenue opportunities.
Factorial Energy made its debut on Monday after completing its business combination with special purpose acquisition company Cartesian Growth Corporation III. The newly combined entity began trading on the Nasdaq stock exchange using the ticker symbol FAC.
FAC shares ended their first trading session at $13.80, representing a 16% increase. By comparison, the S&P 500 rose 0.3% over the same period, while the Dow Jones Industrial Average fell 0.2%.
Cartesian Growth Corporation III Class I common stock, FAC
The business combination assigned Factorial an enterprise value of approximately $1.3 billion. Based on Monday’s final trading price, the company’s market cap is close to $1.8 billion. As a reference point, Quantumscape (QS), a more established competitor in the solid-state battery sector, has a market cap of about $4.7 billion.
The transaction structure provided Factorial with more than $100 million in total capital to support ongoing research and development initiatives. A portion of these funds will be allocated to creating tailored manufacturing capabilities for customers specializing in the defense and aerospace industries.
Factorial specializes in solid-state battery technology, eliminating traditional liquid electrolytes. The company’s value proposition focuses on reduced costs, faster charging times, extended driving range, and improved safety profiles versus standard lithium-ion battery technology. The challenge – common across the entire solid-state industry – remains achieving large-scale commercial production.
A unique feature that sets QuantumScape((LINK_END_2) apart) is its batteries, which contain trace amounts of liquid components, enabling production using traditional battery manufacturing infrastructure. This approach can provide a significant competitive advantage during the expansion phase.
Key automotive cooperation and development schedule
Mercedes Benz global charges, excellentHyundai and Kia are among its partners in the automobile industry. Throughout 2024, the company has been delivering sample B units to Mercedes – working prototypes mainly for testing purposes. Mercedes then completed a remarkable 1,205-kilometre journey from Stuttgart to Malmö on a single charge using a test car equipped with FEST® battery cells from Factorial.
The development progress moves from B-samples to C-samples to validate the manufacturing process, followed by D-samples that represent production-ready specifications. The worker continues to progress through this development sequence.
The company has set its initial program for producing passenger cars in the United States in cooperation with Karma Automotive, with a delivery time frame targeting 2027 or 2028.
CEO Siyu Huang noted that the company will manufacture batteries for high-specification applications at a Korean manufacturing facility. Defense industry applications impose fewer price constraints, making them logical primary commercial targets while solid-state manufacturing costs remain high.
Diversification strategy beyond electric vehicles
Factorial has actively pursued market expansion opportunities outside the electric vehicle segment. During the first quarter of 2026, In-Q-Tel – the strategic investment organization of the US national security agencies – completed a strategic investment to facilitate the expansion of unmanned aerial systems and robotics applications.
In the second quarter of 2026, Factorial unveiled collaboration agreements with drone integrators spanning three continents, including KULR Technology Group, Tulip Tech, and JRES, focused on aviation electric systems applications.
The company has scheduled a Nasdaq opening bell ceremony for June 17, 2026, featuring display vehicles and battery cell displays stationed outside the exchange between 10:00 a.m. and 11:30 a.m. ET.
Peter Yu, Chairman of Cartesian Growth Corporation III, noted that his company provides essential support for PIPE investments in public equity, and sees Factorial as a compelling long-term value proposition for shareholders.
Shares of QuantumScape fell marginally 0.1% on Monday.
