Factorial Energy Lands First Commercial Drone Battery Order
The solid-state battery company booked a July drone order, a Tulip flight-test partnership and an SK On manufacturing MoU after a $13.0 million quarter of spending.
Factorial Energy Inc. (FAC), a solid-state battery developer, secured its first commercial drone battery order in July, after the quarter ended June 30, combining its cell technology with a U.S.-based pack integrator’s system architecture.
The company said it may satisfy the order with a mix of proprietary cells and third-party-manufactured cells, and that the sale moves its technology into commercial deployment. It described the order as the first of what it expects to be additional orders across drones, aerospace, space, defense and robotics.
The order followed a second quarter in which Factorial, which completed a business combination with Cartesian Growth Corporation III in June and rang the Nasdaq opening bell as a public company, announced drone-integrator collaborations on three continents: KULR Technology Group in the United States, Tulip Tech in Europe and JRES in South Korea.
In July, after successful flight testing, Factorial announced a strategic partnership with Tulip Tech. Initial customer flight testing showed more than a 30% increase in flight range before any engineering optimization, establishing a framework for joint customer engagement and a roadmap toward volume production. July flight milestones also included a 521-minute world-record flight duration and a 483 km single-mission flight, with Factorial’s lithium-metal platform showing 20% less weight without engineering optimization.
In June, Factorial achieved the first automotive integration of solid-state battery technology in North America, putting FEST cells into a Dodge Charger Daytona development vehicle with Stellantis and launching road testing. The integration used a patented mechanical pack architecture designed by Stellantis. Mercedes-Benz real-world road testing in a lightly modified test vehicle achieved more than 1,200 km of range on a single charge. Stellantis lab testing verified 77 Ah cells; the Charger Daytona demonstration vehicle showed fast charging from 15% to 90% in 18 minutes, 375 Wh/kg energy density and operation from -30 °C to 45 °C.
Following the June close, Factorial added Dieter Zetsche, former Chairman of Daimler AG and Head of Mercedes-Benz Cars, to its board. In July it also signed a memorandum of understanding with SK On to evaluate manufacturing Factorial’s solid-state technologies at scale on SK On’s global network, including existing lithium-ion capacity. The MoU was the company’s second manufacturing-focused partnership with a global battery producer and reflects a capital-light approach to industrialization.
Fabrication lines have already produced and shipped thousands of automotive-sized FEST cells to global OEM partners for testing. The platform has demonstrated 390 Wh/kg in cells delivered to a global OEM customer. Within drone programs, Factorial expects to advance energy density toward approximately 450 Wh/kg by year end, with continued improvement targeted for next year. FEST is designed for drones, data centers and other high-power uses and is compatible with up to 80% of existing lithium-ion manufacturing equipment; Solstice targets robotics and space systems that need high thermal stability. Together the platforms are protected by more than 150 patents and applications.
For the three months ended June 30, 2026, Factorial recorded operating expenses of $13.0 million and a GAAP net loss of $11.3 million, directed primarily at research and development, sales and marketing, and operational infrastructure. For the six months ended June 30, operating expenses were $19.5 million and the GAAP net loss was $19.9 million. Non-GAAP operating expenses for the six months were $14.5 million. Capital expenditures for the six months were $0.6 million, aimed at expanding fabrication lines for initial commercial production. Cash and cash equivalents were approximately $112.8 million as of June 30.
For the full year 2026, Factorial expects non-GAAP operating expenses of approximately $40 million and capital expenditures of approximately $13 million, with fabrication-capacity expansion to be completed in phases by the end of 2028. The company expects first commercial revenue in 2027, driven by the July drone order and a first supercar battery order in January. Announced automotive partnerships represent 26% of the 4.4 million EVs sold in the United States and Europe in 2024; Factorial expects volume production in automotive over a longer timeframe.
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