Solid Power, a next-generation solid-state battery startup, has entered into a definitive business combination agreement with Decarbonization Plus Acquisition Corporation III (DCRC), a publicly traded special purpose acquisition company (SPAC). The transaction is expected to be completed in Q4 2021, following which the combined company expects to be listed on NASDAQ.

The merger values Solid Power at an implied USD 1.2 billion pro forma enterprise value and is expected to provide approximately USD 600 million in net proceeds,  including a USD 165 million fully committed private investment in public equity (PIPE) transaction anchored by investors Koch Strategic Platforms, Riverstone Energy Limited, Neuberger Berman funds, and Van Eck Associates Corporation. Proceeds are expected to be used to fund operations and support Solid Power's growth.

Founded in 2011, Solid Power develops next-generation solid-state lithium-metal batteries for EVs, aircraft, satellites, and industrial applications. As of May 2021, Solid Power claims that it is on track to begin testing full-scale 100ampere hour (Ah) solid-state batteries for EVs in early 2022 and expects to start producing EV batteries by around 2025. Solid Power is already producing 20 Ah solid-state batteries on a pilot manufacturing line using lithium-ion production processes and equipment. Solid Power has investments or partnerships with automakers such as Ford, BMW, Hyundai, and the Japanese auto-parts maker, Sanoh Industrial.