Solid Power partners with SK Innovation to jointly produce all-solid-state batteries.
Solid Power, Inc. (the “Company” or “Solid Power”), an industry-leading developer of all-solid-state battery cells for electric vehicles, in the process of merging with Decarbonization Plus Acquisition Corporation III (“DCRC”) (NASDAQ: DCRC), announced a partnership with SK Innovation Co (“SK Innovation”) to manufacture automotive-scale all-solid-state batteries under a memorandum of understanding (“MoU”) and joint development agreement (“JDA”).
Together, the partnership is expected to enable SK Innovation to produce automotive-scale all-solid-state battery cells utilizing Solid Power’s sulfide-based solid electrolyte, proprietary cell designs and production processes.
The partnership is intended to facilitate the validation of Solid Power’s all-solid-state cell development and production techniques as part of the industry-standard automotive qualification process (“APQP”). This marks a key milestone on Solid Power’s strategic roadmap to achieve commercial production of all-solid-state battery cells for electric vehicle integration and use.
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Doug Campbell, CEO and co-founder of Solid Power.
The partnership with SK Innovation is designed to validate that Solid Power’s all-solid-state production processes are scalable and compatible with existing lithium-ion production technology.
“The ability to collaborate with a global leader in lithium-ion cell production is key to our go-to-market strategy and meeting anticipated demand.”
Through the JDA, SK Innovation and Solid Power plan to cooperate on all-solid-state cell development, validation and production to enable Solid Power to deliver pre-commercial all-solid-state cells to the Company’s automotive customers for qualification testing. Solid Power’s Silicon EV Cell is expected to be safer, provide longer range, and cost less than today’s leading lithium-ion batteries.
Dr. Lee Seongjun, CTO of SK Innovation.
We are delighted to partner with Solid Power, an industry-leading sulfide-based all-solid-state technology company.
“We expect our partnership with Solid Power will play a pivotal role in delivering higher energy, lower-cost batteries to power longer range electric vehicles.”
In addition, SK Innovation agreed to invest $30 million in Solid Power through a subscription to purchase shares in DCRC’s previously announced PIPE transaction. This investment adds to the $165 million fully committed PIPE, which is anchored by investors Koch Strategy Platforms, Riverstone Energy Limited, Neuberger Berman funds and Van Eck Associates Corporation.
This investment, along with the other previously announced PIPE investments related to Solid Power’s business combination with DCRC, is subject to certain conditions, including the successful completion of the business combination within the period contemplated by the subscription agreements.
Through this partnership, Solid Power intends to license its proprietary technology, manufacturing know-how and practices to SK Innovation to enable full integration of the Company’s sulfide-based solid electrolyte material and the Company’s cell designs into SK Innovation’s existing cell production environment.
The technology license and future commercial supply are subject to the parties successfully negotiating and entering into further commercial agreements, along with regulatory approvals and other customary conditions.
Derek Johnson, Chief Operating Officer at Solid Power.
The JDA and MoU provide the framework for us to jointly develop and industrialize our high-content silicon all-solid-state battery cells as part of Solid Power’s current technology development roadmap.
“To successfully develop and launch our cell products, we follow the standard automotive APQP process, which will ensure our cell design meets automotive partner specifications, meets the highest quality standards and is manufacturable at high rates with high yields. The ability to quickly transfer production know-how and cell designs to a partner with lithium-ion production at GWh scale saves on capital expenses, in line with Solid Power’s capital light business model.”
Solid Power plans to supply SK Innovation with its proprietary electrolyte for use in the manufacturing of all-solid-state cells. Under terms of the JDA, Solid Power expects to generate a small amount of revenue from both research and development and from the sale of electrolyte samples beginning in 2022.
As announced on June 15, 2021, Solid Power entered into a definitive agreement for a business combination with DCRC, a publicly traded special purpose acquisition company, or SPAC, that would result in Solid Power becoming a publicly listed company. Completion of the proposed transaction is subject to customary closing conditions and is expected to occur in the fourth quarter of 2021.
Important Information for Investors and Stockholders
This communication is being made in respect of the proposed transaction involving Decarbonization Plus Acquisition Corporation III (“DCRC”) and Solid Power, Inc. (“Solid Power”). A full description of the terms of the transaction is provided in the registration statement on Form S-4 (File No. 333-258681) (the “Registration Statement”) filed with the Securities and Exchange Commission (the “SEC”) by DCRC.
The Registration Statement includes a prospectus with respect to the combined company’s securities to be issued in connection with the business combination and a preliminary proxy statement with respect to the stockholder meeting of DCRC to vote on the business combination. Additionally, DCRC will file other relevant materials with the SEC in connection with the business combination.
Copies may be obtained free of charge at the SEC’s web site at www.sec.gov. Security holders of DCRC are urged to read the proxy statement/prospectus, including all amendments and supplements thereto, and the other relevant materials when they become available before making any voting decision with respect to the proposed business combination because they will contain important information about the business combination and the parties to the business combination.
After the Registration Statement is declared effective, the definitive proxy statement/prospectus included in the Registration Statement will be mailed to stockholders of DCRC as of a record date to be established for voting on the proposed business combination.
Once available, stockholders will also be able to obtain a copy of the S-4, including the proxy statement/prospectus, and other documents filed with the SEC without charge, by directing a request to: Decarbonization Plus Acquisition Corporation III, 2744 Sand Hill Road, Suite 100, Menlo Park, California 94025. The information contained on, or that may be accessed through, the websites referenced herein is not incorporated by reference into, and is not a part of, this filing.
Participants in the Solicitation
DCRC and Solid Power and their respective directors and officers may be deemed participants in the solicitation of proxies of DCRC’s stockholders in connection with the proposed business combination.
Security holders may obtain more detailed information regarding the names, affiliations and interests of certain of DCRC’s executive officers and directors in the solicitation by reading DCRC’s definitive proxy statement/prospectus, which will become available after the Registration Statement has been declared effective by the SEC, DCRC’s final prospectus for its initial public offering filed with the SEC on March 25, 2021, and other relevant materials filed with the SEC in connection with the business combination when they become available.
Information concerning the interests of DCRC’s participants in the solicitation, which may, in some cases, be different than those of DCRC’s stockholders generally, is set forth in the preliminary proxy statement/prospectus relating to the proposed business combination.
No Offer or Solicitation
This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or constitute a solicitation of any vote or approval in respect of the potential transaction and shall not constitute an offer to sell or a solicitation of an offer to buy the securities of DCRC, Solid Power or the combined company, nor shall there be any sale of any such securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.
No offer of securities shall be made except by means of a prospectus meeting the requirements of the Securities Act.
Highlights:
- Solid Power and SK Innovation sign a memorandum of understanding and joint development agreement with intent to manufacture all-solid-state cells using Solid Power’s proprietary electrolyte for automotive qualification testing.
- Partnership intended to validate battery cell development and production process as Solid Power works toward commercialization of its all-solid-state cells and electrolyte materials.
- SK Innovation plans to work with Solid Power to further develop Solid Power’s all-solid-state battery technology.
- SK Innovation commits to make a $30 million investment in Solid Power through subscription to purchase shares in DCRC’s previously announced PIPE transaction, which results in aggregate PIPE commitments of $195 million.
Solid Power Partners with SK Innovation to Jointly Produce All-Solid-State Batteries, LOUISVILLE, October 27, 2021
