POSCO Future M, the battery materials unit of South Korea's POSCO Holdings, announced on Tuesday that it has invested in U.S. battery company Factorial Inc., with the two parties agreeing to collaborate on the development of all-solid-state batteries (ASB).

According to a press release from POSCO Future M, the investment aims to assist Factorial in commercializing ASB technology and to help POSCO Future M establish a foothold in the next-generation battery market. The specific investment amount was not disclosed.

The press release stated: "This investment will enable POSCO Future M to prepare for the explosive growth of the ASB market, while also securing a stable supply of battery materials for Factorial."

Headquartered in Massachusetts, USA, Factorial is a leader in the ASB industry and is planning an initial public offering (IPO) in the United States. The company currently operates a pilot ASB production plant in Cheonan, located approximately 87 kilometers south of Seoul.

POSCO Future M indicated that the ASB materials under development are expected to be applied not only in autonomous electric vehicles and urban air mobility (UAM) but also in physical artificial intelligence (AI) technologies, including humanoid robots and other robotic applications.

According to projections from global market research firm Statista, the physical AI market is expected to grow at an average annual rate of 23%, reaching 94 trillion Korean won (approximately $64.3 billion) by 2030, up from 7 trillion won in 2020.