Ford, BMW Back Solid Power's $130M Series B Funding

Solid Power Secures $130M Series B Funding Led by Ford and BMW

Solid state battery systems are widely regarded as a pivotal advancement in battery technology, with numerous startups competing to achieve initial commercialization. Automotive manufacturers have emerged as significant investors in this field, each striving for a competitive advantage in terms of electric vehicle safety, performance, and range.

Investment from Major Automakers

Both Ford Motor Company and BMW Group have chosen to invest in Solid Power, a battery technology company.

The company, based in Louisville, Colorado, announced on Monday that its recent $130 million Series B funding round was spearheaded by Ford and BMW. This demonstrates the confidence of both original equipment manufacturers (OEMs) in the potential of solid-state batteries to revolutionize transportation.

As part of this investment, Ford and BMW hold equal equity stakes, and representatives from each company will be appointed to Solid Power’s board of directors.

Volta Energy Technologies, a venture capital firm originating from the U.S. Department of Energy’s Argonne National Laboratory, also contributed to this funding round.

The Advantages of Solid-State Batteries

Solid state batteries derive their name from the absence of a liquid electrolyte, as previously detailed by Mark Harris. Conventional liquid electrolyte solutions pose flammability and overheating risks, making SSBs inherently safer.

However, the primary benefit of SSBs lies in their superior energy density. Solid Power asserts that its batteries can achieve an energy density increase of 50% to 100% compared to conventional rechargeable batteries.

This increased energy density translates to potentially longer driving ranges for electric vehicles on a single charge.

Scaling Manufacturing and Future Deliveries

The newly acquired funding will enable Solid Power to enhance its manufacturing capabilities, focusing on the production of battery cells with the company’s highest ampere hour (Ah) output to date.

Under existing joint development agreements with both Ford and BMW, Solid Power is committed to delivering 100 Ah cells for rigorous testing and integration into vehicles starting in 2022.

Previously, the company’s production was limited to cells with 2 Ah and 20 Ah output. Hundreds of 2 Ah cells were successfully validated by Ford and BMW in late 2021, according to a company statement.

Currently, Solid Power is producing 20 Ah solid state batteries on a pilot scale utilizing standard lithium-ion equipment.

Cell Architecture and Manufacturing Efficiency

According to Will McKenna, a Solid Power spokesperson, the upcoming 100 Ah cells will feature a larger physical size and a greater number of layers compared to the 20 Ah pilot-scale cells.

These 20 Ah cells are constructed with 22 layers, each measuring 9x20 cm. (“Layers” refer to the number of double-sided cathodes, with corresponding anodes and a solid electrolyte separator between each, all contained within a single cell, McKenna clarified.)

A key advantage of Solid Power’s manufacturing process is the elimination of electrolyte filling and cycling, steps that typically account for 5% to 30% of capital expenditure in a typical gigawatt-hour (GWh) scale lithium-ion facility.

Previous Investments and Industry Trends

This is not the first instance of investment from these automakers. Solid Power’s $20 million Series A round in 2018 also included capital from BMW, Ford, Samsung, Hyundai, Volta, and others.

This investment aligns with a broader trend of OEMs investing in innovative battery companies, with Volkswagen backing QuantumScape and General Motors investing in SES as notable examples.

Ford’s Independent Research

Ford is also conducting independent research into advanced battery technologies and recently announced plans to establish a $185 million research and development battery laboratory.