Solid Power and SK on deepen partnership with new agreements include a research and development license, a line installation arrangement, and an electrolyte supply agreement

Solid Power a developer of solid-state battery technology, announced it has deepened its partnership with SK On with three new agreements: a research and development license, a line installation arrangement, and an electrolyte supply agreement, each of which are detailed below. Together, the agreements expand Solid Power’s presence in Korea and strengthen the existing relationship between Solid Power and SK On, a key cell manufacturing partner.

“This expanded arrangement with SK On provides the framework for closer collaboration with one of the battery manufacturers and increases our presence in one of the world’s most strategically important battery markets,” said John Van Scoter, President and Chief Executive Officer of Solid Power. “This is another meaningful vote of confidence for our solid-state battery technology. This deepened relationship strengthens our competitive position as we progress towards commercialization.

The deepened relationship between the two companies will increase overall collaboration and development efforts on Solid Power’s solid-state cell technology. The agreements enable SK On to use Solid Power’s cell technology for research and development and to produce batteries on a new SK On solid-state line in Korea.

“SK On has, and will continue to be, an important partner for Solid Power,” said Derek Johnson, Chief Operating Officer of Solid Power. “As demonstrated in 2023, a deepened collaboration with our key partners can accelerate technology advancement. Today’s steps will further expand development of our solid-state technology into Korea and allow Solid Power to demonstrate its capabilities as a valued electrolyte supplier.”

Van Scoter continued, “The primary benefit of these agreements is to broaden the development of our technology with a key partner. As we execute, we also expect to strengthen our cash position.”

Upon achievement of milestones and electrolyte deliveries, Solid Power expects to receive at least $50 million in revenue from these combined agreements.

The Agreements

Research and Development. Under the research and development license, SK On will license Solid Power’s solid-state cell designs and manufacturing processes in exchange for payments totaling $20 million from 2024 to 2027, upon achievement of milestones. The license limits SK On to research and development activities and may not be used for commercial cell production.

Line Installation. The line installation arrangement provides that Solid Power will design, procure, and install a new cell manufacturing line at one of SK On’s Korea facilities in exchange for an estimated $22 million, upon achievement of milestones. The new line will be modeled after Solid Power’s Colorado-based EV line and will produce EV-scale cells utilizing Solid Power’s solid-state electrolyte technology. Construction of the line will begin in 2024 and is expected to be complete in 2025.

Electrolyte Supply. SK On has also agreed to purchase Solid Power’s electrolyte for use on their new line in Korea through Solid Power’s first-of-its-kind electrolyte supply agreement. Initially, under the electrolyte supply agreement, SK On will purchase electrolyte to validate its new solid-state line. After validation, SK On is required to purchase at least eight metric tons of electrolyte from Solid Power through 2030, which it will use to collaborate with Solid Power in advancing its cell technologies. Depending on volumes, Solid Power expects to receive at least $10 million from these electrolyte sales.