Ford-backed EV battery producer to go public via SPAC merger at a $1.2 billion valuation

Solid Power Inc batteries
  • Solid Power announced it is going public via a SPAC merger in a deal that would value the entities at $1.2 billion.
  • The company is expected to have $600 million in cash, including $165 million from private investors.
  • Ford Motors and BMW recently participated in the $135 million Series B funding of Solid Power in May.

Electric-vehicle battery producer Solid Power on Tuesday announced it’s going public by merging with blank-check firm Decarbonization Plus Acquisition Corporation III in a deal valued at $1.2 billion.

The company is expected to have approximately $600 million in cash, including $165 million from investors such as Koch Strategic Platforms, Riverstone Energy Limited, Neuberger Berman funds, and Van Eck Associates Corporation. The capital will be used to fund operations and growth.

Ford Motors and BMW recently participated in the $135 million Series B funding of Solid Power in May. The two companies also expanded partnerships with Solid Power to secure all solid-state batteries for future electric vehicles.

Solid Power produces rechargeable batteries for electric vehicles and mobile power markets. The company claims its production mirrors lithium-ion manufacturing processes while eliminating certain expensive and timely steps.

Upon closing of the transaction, which is expected to be completed in the fourth quarter of 2021, the combined company will trade under the Nasdaq ticker “SLDP.”

Solid Power is expected to have a nine-person board composed of a majority of independent directors and will continue to be led by Solid Power’s existing management team.

Other electric vehicle makers went public via SPAC this year such as Lucid Motors and Nikola Corp.

SPACs, shell companies seeking to merge with private companies with the intention of taking them public, have exploded in popularity in the last year.

In 2020, a total of 248 SPACs raised $83.3 billion according to SPAC Analytics. But in the sixth month of 2021 alone, data already show 340 SPACs that have raised $106 billion, comprising 61% of initial public offerings.

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Energy-tech firm Romeo Power surges 55% after inking deal to provide battery packs to heavy-truck giant Paccar

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Shares of Romeo Power surged to an intraday high of 55% on Tuesday after the energy-technology company announced inking a five-year deal to provide battery packs, modules, and battery management systems to the electric vehicles of Paccar, one of the world’s largest manufacturers of medium- and heavy-duty trucks.

“Romeo Power’s battery technology solutions will enable PACCAR to deliver state-of-the-art transportation solutions that enhance customers’ operations and environmental impact,” Darrin Siver, Paccar senior vice president, said in a statement Tuesday.

Shares of Romero Power climbed steadily to their highest in two weeks after the announcement was made at 7 a.m. ET. Trading volume grew to 129.54 million shares compared to the 6.48 million average.

Founded in 2016, the Los Angeles-based Romeo Power focuses on creating lithium-ion battery modules and packs used in electric vehicles. The manufacturing company went public through a blank check merger in December 2020.

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Volkswagen surges 17% after revealing plans to build battery factories to compete with Tesla

Volkswagen
  • Shares of Volkswagen surged 17% on Tuesday after it revealed plans of dethroning Tesla as the world’s biggest manufacturer of electric cars.
  • During a live stream, executives said the company intends to build six battery production plants by 2030 in Europe alone.
  • The company says it could potentially decrease battery production costs by 50%.
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Shares of Volkswagen surged 17% on Tuesday after the German car maker revealed plans aimed at dethroning Tesla as the world’s biggest manufacturer of electric cars by boosting key production capacities.

During its “Power Day” on Monday, the company presented its strategy to expand battery production in Europe, as well as massive plans to make investments in charging infrastructure. During the live stream in front of investors, executives said Volkswagen intends to build six battery production plants in Europe by 2030.

By improving its cell design, production processes, and materials, the company sees the possibility of decreasing battery costs by up to 50%.

“E-mobility has become core business for us,” Volkswagen Group CEO Herbert Diess said in a statement. “We are now systematically integrating additional stages in the value chain. We secure a long-term pole position in the race for the best battery and best customer experience in the age of zero-emission mobility.”

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