SK Innovation bets on US battery maker Solid Power

South Korean holding company SK Innovation (KRX:096770) has agreed to make a USD-30-million (EUR 25.8m) investment in US solid-state battery maker Solid Power, which is backed by German carmaker BMW AG (ETR:BMW) and US peer Ford (NYSE:F).

Solid Power is currently in the midst of going public through a merger with a special purpose acquisition company (SPAC) formed by private investment firm Riverstone -- Decarbonization Plus Acquisition Corporation III (DCRC), in a deal that values the combined company at about USD 1.2 billion.

SK Innovation’s investment will be made through a subscription to purchase shares in DCRC’s previously announced private investment in public equity (PIPE) transaction.

The South Korean company’s bet also comes as part of a broader partnership to manufacture automotive-scale all-solid-state batteries under a memorandum of understanding and joint development agreement. 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 press release said.

Solid Power agreed the blank-check merger in June. Upon completion of the tie-up, the company is expected to have about USD 600 million in cash, including USD 165 million in the form of PIPE. The PIPE deal is anchored by Koch Strategic Platforms, Riverstone Energy Limited, Neuberger Berman funds and Van Eck Associates Corporation.

(USD 1 = EUR 0.862)

Choose your newsletter by Renewables Now. Join for free!