A faction is a group of non-player character allies or foes that control or fight for the dominance of a specific area.
Labycore, a megacorporation led by Sid Lovens has made allies with few of the local gangs of Dawnbreak.
Resistance, the rebelling organization of various groups, has their own ideological allies who want to drive off Labycore forces from Dawnbreak.
Currently the in-game factions are there for the sake of story and lore. It has been rumored that other systems using these may be introduced later.
(Most of the faction pages are blank with a picture and labeled with "TBA" in the fields so feel free to update them.)