Factorial’s Siyu Huang: Solid-state batteries could change EV game

**Molly Boigon** (0:03)
Hello, and welcome to the Automotive News, Shift podcast, where we bring you the latest on automotive technology, trends, and transformation. I'm Molly Boigon, tech and innovation reporter at Automotive News.

**Hannah Lutz** (0:17)
And I'm Hannah Letts, Assistant Managing Editor of Content at Automotive News.
Our guest today is Siyu Huang, the CEO and co-founder of Factorial Energy, a solid state battery company that is working to improve the electric vehicle market. She spoke to Molly about extending Mercedes EV range and how a lighter vehicle will drive down costs for consumers.

**Siyu Huang** (0:37)
I think based on our OEM and our customer's validation and feedback so far, not only just for automotive, but for drones, for space applications, Factorial has one of the best technologies out there.

**Hannah Lutz** (0:51)
But first, let's talk about the week.

**Molly Boigon** (0:53)
For that, we're joined by our colleague, Richard Truitt, a reporter here at Automotive News, covering Hyundai, Kia, and Genesis, and engineering. Hi, Richard.

**Richard Truitt** (1:02)
Hey, Molly. Hey, Hannah.

**Hannah Lutz** (1:03)
Hey, Richard.

**Molly Boigon** (1:04)
Richard, you wrote this week about how Chinese automakers still have offices in the US, despite their barriers to entering the US market. What Chinese companies did you see that have the biggest US presence, and why are they in the United States?

**Richard Truitt** (1:16)
Well, clearly, the largest is BYD, which is short for Build Your Dreams. They have a manufacturing facility in California. They don't make passenger cars, but they do make passenger vehicles, buses, electric buses that are used in fleets and for school districts. Why are they here? Well, BYD is one of China's biggest automotive exporters and they are clearly eyeing the US market. Giving them manufacturing capability here opens up all sorts of avenues for them in the future in terms of finding suppliers, training a workforce. So, they're here, they're the biggest and there are a few others with, gosh, how would you say it? Kind of like stealth offices and small R&D operations. Why are they here? That's a good question. A couple of the analysts I spoke to said they're here looking for talent and keeping their eyes on regulatory affairs.

**Hannah Lutz** (2:14)
Okay. Well, Richard, this situation is a little different at our neighbors in Canada. Chinese vehicles are getting ground there in Canada.
Forty-nine thousand Chinese vehicles are slated to enter the Canadian market this year. To what extent are Chinese vehicles going to enter the US market from Canada?

**Richard Truitt** (2:32)
Well, the Trump administration has said in no uncertain terms, they're not going to let those Chinese vehicles come over the border. However, there are certain synergies between the US and Canadian markets. Now, to certify a vehicle for sale in Canada, you know, deals with safety and emissions and other requirements, and those regulations are largely aligned with the US market. So, if a Chinese automaker goes through the trouble of certifying a car for sale in Canada, that car could technically be sold here with no restrictions.
Someday, when the political climate is not quite as heated, it could very well be that Canada is the springboard into the US for China.

**Hannah Lutz** (3:17)
Yeah, I know there has been discussion about that regarding Mexico, too. So, we'll definitely keep an eye on it. You mentioned a few minutes ago that the Chinese brands have some offices in the US.
What exactly are they doing here? You said analysts gave you some clue. What was your experience in the reporting for this? What were you able to find out and what questions do you still have?

**Richard Truitt** (3:39)
You know, I had a lot of questions that didn't get answered, Hannah, because when I went down the list of Chinese automakers that have offices here, I discovered one thing in common with all of them. They don't answer the door, they don't pick up the phone, and they don't respond to emails. That's a really curious situation. Why would they be doing that?
I can't answer it exactly, but I do have some ideas. I think that for Chinese automakers, to have any presence in the US gives them a little bit of credibility. Because if you go to their websites where they show their global locations, they're in Europe and South America, and to have an office here shows that they're a player. I think that that has something to do with it.
There may be other reasons as well, but it's a bit of a mystery.

**Hannah Lutz** (4:30)
Yeah, maybe a long-term marketing game to them.

**Richard Truitt** (4:33)
It could be.
This may be a little bit of inside baseball, but for those of us in the Detroit Press Corps, who attend regular automotive gatherings, like conferences and conventions and panel discussions, we never see Chinese executives take part in those. And that's another kind of curious thing. They're here with their offices, yet they're not here because they don't participate.