Solid-State Battery Startup Solid Power Goes Public With SPAC Merger

So far, only BMW and Ford were able to bet on Solid Power as a strong contender in the solid-state battery race. However, anyone will soon manage to do the same by buying its shares. The startup will be traded at NASDAQ under the SLDP sticker thanks to a merger with a SPAC (Special Purpose Acquisition Company), Decarbonization Plus Acquisition Corporation III, already listed as DCRC. The enterprise value is estimated to be at $1.2 billion.
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When you remember that QuantumScape had an estimated value of $3.3 billion and currently has a market cap of $10.7 billion, it is not unlikely that Solid Power will see a similar rise in value after its shares are on NASDAQ.

Solid Power has a different approach to that of QuantumScape. Instead of developing a manufacturing method that is exclusive to its solid-state battery technology, it plans to create its cells with the same machines currently used for conventional batteries. That implies that battery manufacturers will not have to invest billions more to produce them. For consumers, the advantage is that these solid-state cells promise not to cost a fortune.

These new batteries have crucial advantages when compared to the current ones. They have a solid electrolyte instead of a liquid one, which saves mass. This solid electrolyte would also avoid dendrites and short circuits in the batteries that can cause fires and ruin the entire car, like the recent fires with the Chevrolet Bolt EV and the Hyundai Kona Electric demonstrated.

According to the press release about the deal, the deal will give Solid Power $600 million in cash to “fund operations and support Solid Power's growth.” Solid Power has recently received $135 million in a Series B investment round in which Ford and BMW made new money injections in the startup. The automakers also have an executive each in Solid Power’s board of directors.

The curious part is that the merger will only be completed in Q4 2021, which is more than four months from now. It is not clear why it will take so long to end. Still, the companies mention that it is subject to “DCRC's stockholders and satisfaction or waiver of the other conditions stated in the definitive documentation.”
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About the author: Gustavo Henrique Ruffo
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Motoring writer since 1998, Gustavo wants to write relevant stories about cars and their shift to a sustainable future.
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