BMW-Backed Solid Power Seals SPAC Deal at $1.2 Billion Valuation

(Bloomberg) -- Solid Power, a maker of solid-state batteries backed by Ford Motor Co. and BMW AG, confirmed it’s agreed to merge with a blank-check firm in a deal that values the combined company at about $1.2 billion.

The electric-vehicle battery developer expects to complete its combination with Decarbonization Plus Acquisition Corp. III in the fourth quarter and list on the Nasdaq under the ticker symbol SLDP, according to a statement. Bloomberg News reported last week the companies were in merger talks.

Once the deal closes, Solid Power expects to have about $600 million in cash, including $165 million from a private investment in public equity, or PIPE. The Louisville, Colorado-based company expects to supply batteries that offer almost 500 miles (805 kilometers) of driving range to future Ford and BMW vehicles.

The Decarbonization Plus SPAC is an affiliate of Riverstone Investment Group. Led by CEO Erik Anderson, it raised $350 million in a March initial public offering. The company’s shares rose as much as 5.7% before the start of regular trading Tuesday.

QuantumScape Corp., another solid-state battery developer that counts Volkswagen AG as its biggest shareholder, became a public company through a SPAC merger. Its market value as of Tuesday afternoon was $10.8 billion.

©2021 Bloomberg L.P.