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Solid-state lithium-ion company to go public after merger with blank cheque firm

Fri, 06/25/2021 - 16:36 -- Paul Crompton
Solid-state lithium-ion company to go public after merger with blank cheque firm

The battery industry’s gradual transition to solid-state lithium-ion technology continues this week with Solid Power signing a deal to become a publicly listed company.

The producer of all-solid-state batteries is due to trade on NASDAQ following a merger with Decarbonization Plus Acquisition Corporation III (DRC), a blank cheque firm sponsored by an affiliate of energy-focused private investment firm Riverstone Holdings.

Upon closing of the transaction, the combined company’s common stock and warrants are expected to trade under the ticker symbol “SLDP”, and is expected to have a nine-person board composed of a majority of independent directors and will continue to be led by its existing management team.

Cash proceeds to Solid Power will be used to fund operations and support its growth.

The boards of directors of both Solid Power and DCRC have approved the proposed transaction, which is due to be completed in the fourth quarter of 2021. 

Robert Tichio, chairman of the board of DCRC and partner at Riverstone Holdings, said, “Solid-state batteries have long been the elusive technology breakthrough in the battery category for the better part of a decade. 

“Countless labs, scientists, ventures and corporates have claimed progress towards scalable solid-state batteries, with an emphasis on claims. No other known company has made the type of commercialisation achievements in all-solid-state batteries that Solid Power has.”

In May, Solid Power announced a $130 million Series B investment round led by the BMW Group, Ford Motor Company and Volta Energy Technologies. 

Ford and the BMW Group also expanded existing joint development agreements with Solid Power to secure all-solid-state batteries for future electric vehicles. 

Transaction Overview 

The business combination values Solid Power at an implied $1.2 billion pro forma enterprise value. Upon closing of the transaction and assuming no redemptions by DCRC public stockholders, Solid Power is expected to have approximately $600 million in cash, including a $165 million fully committed PIPE transaction anchored by investors Koch Strategic Platforms, Riverstone Energy Limited, Neuberger Berman funds and Van Eck Associates Corporation. 

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