Solid Power Expands Production for BMW and Ford Batteries

Solid Power Expands Production Capacity for Solid-State Batteries

Solid Power, a battery technology firm supported by investments from Ford and BMW, is increasing the size of its manufacturing facility in Colorado as it approaches pilot production of its innovative solid-state batteries in the coming year.

Increased Electrolyte Production

The expanded facility will focus on the production of a key component: a sulfide-based solid electrolyte material. Output of this material is projected to increase by as much as 25 times its current levels. This expansion will also accommodate the installation of the company’s first pilot production line for commercial-grade, 100 ampere battery cells.

Automotive Testing and Future Integration

These advanced pouch cells are slated for delivery to both Ford and BMW for rigorous automotive testing starting in early 2022. The ultimate goal is to integrate these batteries into production vehicles by the latter part of the decade.

The Promise of Solid-State Battery Technology

Solid state batteries are widely regarded as a significant advancement in battery technology. Unlike conventional lithium-ion batteries, they do not utilize a liquid electrolyte – the medium for ion transport between the cathode and anode – as explained by TechCrunch’s Mark Harris.

Developers of SSB technology anticipate benefits including greater energy density, lower production costs, and extended battery lifespan.

Enhanced Safety Features

A crucial advantage of solid-state batteries is improved safety. This is particularly relevant given recent incidents, such as GM’s recalls of Chevrolet Bolt vehicles due to fire hazards. According to Solid Power CEO Doug Campbell, the liquid electrolyte is often the source of “thermal runaway,” a condition leading to fires. “We firmly believe that the safety concerns experienced by Hyundai and GM could be mitigated with solid-state battery technology.”

A Materials-Focused Business Model

While Solid Power is establishing a pilot production line for battery cells, its long-term strategy centers on manufacturing and licensing the solid electrolyte material to original equipment manufacturers (OEMs) and battery producers.

“Our core identity is as a materials company,” stated Campbell. “We aim to be the leading provider of solid electrolyte materials.” He indicated that this current expansion into cell production is likely to be the company’s last.

Asset-Light Strategy and Competitive Landscape

The decision to license cell production to partners, rather than handle it internally, represents a capital-efficient approach. Campbell noted the challenges of competing directly with established battery giants like Panasonic, LG, and CATL, even as companies like Northvolt attempt to do so.

“Margins in the materials business are higher and avoid direct competition with these industry leaders,” he explained. “This model is both capital-light and pragmatic.”

Going Public and Funding

In June, Solid Power announced plans to become a publicly traded company through a $1.2 billion reverse merger with Decarbonization Plus Acquisition Corp. III. This transaction is expected to generate approximately $600 million in capital, providing sufficient funding through 2026 or 2027, according to Campbell.

Future Capacity and Material Development

Significant capital will be required to support the company’s growth throughout the decade, particularly as it aims to achieve an annual cell capacity supported by 10 gigawatt-hours of electrolyte material by 2027. This will necessitate a substantial increase in electrolyte production capacity – an expansion far exceeding today’s announcement.

Low-Cost Cathode Material Research

Solid Power’s ambitions extend beyond electrolyte production. The company is also developing a low-cost cathode material, designed to eliminate the need for nickel and cobalt – two of the most expensive raw materials used in battery production.

“The battery industry will be largely defined by material costs, and the cost of the cathode material will be paramount,” Campbell said. “The chemistry we will unveil later this year is projected to be significantly cheaper – costing between 1/20th and 1/30th of current nickel manganese cobalt cathodes.”