Solid Power to Go Public: BMW & Ford-Backed Battery Tech SPAC Deal

Solid Power to Become Publicly Traded Company

Solid Power, a developer of solid-state battery technology with backing from both Ford and BMW, has announced its intention to become a publicly listed company.

The company revealed on Tuesday that it will achieve this through a merger with Decarbonization Plus Acquisition Corp III, a special purpose acquisition company (SPAC).

This transaction implies a post-deal market valuation of $1.2 billion for Solid Power.

Funding and Investment

Approximately $600 million in cash is anticipated to result from the transaction.

This includes a $165 million private investment in public equity (PIPE) secured from investors such as Koch Strategic Platforms, Riverstone Energy Limited, Neuberger Berman, and Van Eck Associates Corporation.

Solid Power stated that these funds will be allocated to support its growth initiatives and ongoing operations.

The Promise of Solid-State Batteries

Solid state batteries are widely regarded as a significant advancement in battery technology.

Unlike traditional lithium-ion batteries, they do not utilize a liquid electrolyte, which is the component responsible for ion transport between the cathode and anode.

Eliminating the liquid component is expected to enhance both the safety and energy density of these batteries.

According to a presentation from Solid Power on June 15th, their batteries are projected to provide a range of nearly 500 miles on a single charge.

Furthermore, they are anticipated to surpass the lifespan of conventional batteries by more than double, exceeding an 8-year duration.

Strategic Partnerships

Both Ford Motor Company and BMW AG have expressed strong confidence in Solid Power’s capabilities.

The two automotive manufacturers jointly led a $130 million Series B funding round in May.

They also established joint development agreements to receive automotive-scale batteries from Solid Power’s pilot production line, with deliveries scheduled for early 2022.

Timeline and Trading Information

Solid Power anticipates the completion of the SPAC transaction in the fourth quarter of 2021.

Upon completion, the company’s stock will be traded on the NYSE under the ticker symbol “SLDP.”

Recent Trend of Battery Companies Going Public

Solid Power is not alone in utilizing a SPAC to enter the public market.

QuantumScape, a key competitor backed by Volkswagen, completed a similar merger last September, achieving a valuation of $3.3 billion.

Earlier in the year, FREYR, a European battery manufacturer, and Microvast, a power system developer, also announced mergers with special purpose acquisition companies.