Solid Power Partners with SK innovation to jointly produce all-solid-state batteries

  • 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-solidstate 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, (the “Company” or “Solid Power”), an industry developer of all-solid-state battery cells for electric vehicles, in the process of merging with Decarbonization Plus Acquisition III (“DCRC”), announced a partnership with SK Innovation (“SK Innovation”) to manufacture automotivescale 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.

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,” said Doug Campbell, CEO and co-founder of Solid Power. “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 allsolid-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 lithium-ion batteries.

We are delighted to partner with Solid Power, an industry sulfide-based all-solid-state technology company,” said Dr. Lee Seongjun, CTO of SK Innovation. “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. 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.

The JDA and MoU provide the framework for us to jointly develop and industrialize our highcontent silicon all-solid-state battery cells as part of Solid Power’s current technology development roadmap,” said Derek Johnson, Chief Operating Officer at Solid Power. “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.