BY Fraser Tennant
In a deal that takes the start-up public, BMW- and Ford-backed battery maker Solid Power is to merge with special purpose acquisition company (SPAC) Decarbonization Plus Acquisition Corporation III (DCRC) – a combination valued at $1.2bn.
Upon closing of the transaction, which is expected in the fourth quarter of 2021, Solid Power is projected to have approximately $600m in cash, including a $165m fully committed private investment in public equity (PIPE) transaction anchored by investors. The company will continue to be led by its existing management team.
“This is an important milestone of commercialising Solid Power's next generation of all-solid-state batteries that can alleviate the two largest passenger EV pain points: range anxiety and cost,” said Doug Campbell, co-founder and chief executive of Solid Power. “In addition to our existing partners, Ford and BMW, we are now excited to partner with the DCRC team that shares our vision of powering a cleaner, safer and cost-effective electric future.”
Testifying to this vision, Solid Power recently announced an approximately $135m Series B investment round led by the BMW Group, Ford Motor Company and Volta Energy Technologies. Ford and BMW also expanded existing joint development agreements with Solid Power to secure all-solid-state batteries for future electric vehicles.
“No other known company has made the type of commercialisation achievements in all-solid-state batteries that Solid Power has,” said Robert Tichio, chairman of the board of DCRC and partner at Riverstone Holdings LLC. “Solid Power's technology is built around a manufacturing process that would be indistinguishable to lithium-ion batteries, putting this company in a league of its own.”
The boards of directors of both Solid Power and DCRC have approved the proposed transaction, which is expected to be completed in the fourth quarter of 2021, subject to, among other things, the approval by DCRC's stockholders and satisfaction or waiver of the other conditions.
Mr Tichio concluded: “With nearly a $220bn total addressable market, Solid Power is well-positioned for significant growth for years to come.”
News: BMW-Backed Solid Power Seals SPAC Deal at $1.2 Billion Valuation