Mercedes-Benz has announced a major milestone in its development of a solid-state battery in partnership with U.S. battery technology company Factorial.

Mercedes and Factorial on Tuesday jointly announced they are working on a solid-state battery that they expect to be in production by the end of the decade.

Known as Solstice, the battery has an energy density of 0.45 kwh per kilogram (approximately 2.2 pounds), or close to double the density of current lithium-ion batteries. The companies said EVs using the Solstice battery could have up to 80% more range compared to today's average.

The Solstice battery features a sulfide-based solid electrolyte and a new type of cathode design that's simpler and less expensive to manufacture than traditional cathodes. The battery is also targeted to maintain performance at temperatures above 194 degrees F, which its makers claim will reduce the need for complex and heavy battery cooling systems in EVs.

Solid-state batteries are touted as a revolutionary technology for EVs, as they offer reduced fire risk since they're less prone to overheating, and with their high energy density they have the potential to deliver lighter, more affordable EVs. Although the technology isn't new, scaling up production has proven more challenging than anticipated for automakers and battery manufacturers.

Mercedes first announced plans to work with Factorial on a solid-state battery in 2021 and the following year led a $200 million investment round. Hyundai is another major automaker that has invested in Factorial.

Mercedes has also invested in Taiwanese solid-state battery company ProLogium, and is researching high-silicon anodes as an alternative solution to boost range in EVs, according to Reuters.