BMW-backed Solid Power seals SPAC deal at US$1.2b valuation

[LONDON] Solid Power, a maker of solid-state batteries backed by Ford Motor and BMW, confirmed it's agreed to merge with a blank-cheque firm in a deal that values the combined company at about US$1.2 billion.

The electric-vehicle battery developer expects to complete its combination with Decarbonization Plus Acquisition Corp III in the fourth quarter and list on the Nasdaq under the ticker symbol SLDP, according to a statement. Bloomberg News reported last week the companies were in merger talks.

Once the deal closes, Solid Power expects to have about US$600 million in cash, including US$165 million from a private investment in public equity, or PIPE. The Louisville, Colorado-based company expects to supply batteries that offer almost 500 miles (805km) of driving range to future Ford and BMW vehicles.

The Decarbonization Plus special purpose acquisition company (SPAC) is an affiliate of Riverstone Investment Group. Led by chief executive Erik Anderson, it raised US$350 million in a March initial public offering. The company's shares rose as much as 5.7 per cent before the start of regular trading Tuesday.

QuantumScape, another solid-state battery developer that counts Volkswagen as its biggest shareholder, became a public company through a SPAC merger. Its market value as of Tuesday afternoon was US$10.8 billion.

BLOOMBERG