Posco Future M (KRX:003670) signed a memorandum of understanding with US-based Factorial to jointly develop materials for all-solid-state batteries, the battery material and chemical company said in a Thursday release.

Under the deal, the companies will explore collaboration on core materials for next-generation applications--including electric vehicles, robotics, and energy storage systems. Factorial signed the agreement after testing Posco Future M's cathode materials and confirming strong rate performance, according to the release.

Shares of Posco Future M fell nearly 1% at market close.