Strong Energy, a solid-state battery developer backed by Ford and BMW, goes public. The corporate stated Tuesday it might head to the NASDAQ by way of a merger with particular goal acquisition firm Decarbonization Plus Acquisition Corp III at a post-deal implied market valuation of $1.2 billion.
The transaction is predicted to generate round $600 million in money, together with a $165 million non-public funding in public fairness (PIPE) transaction from traders Koch Strategic Platforms, Riverstone Vitality Restricted, Neuberger Berman and Van Eck Associates Company. Strong Energy stated in an announcement Tuesday that the funds will go towards development and operations.
Strong state batteries are thought-about by many as the subsequent long-awaited breakthrough in battery expertise. They’re so named as a result of they lack a liquid electrolyte, the mechanism that strikes ions between the cathode and anode in conventional lithium-ion batteries, as Mark Harris defined in an Further Crunch article earlier this 12 months. By eliminating this liquid part, builders say SSBs are safer and with far superior vitality density. Strong Energy stated in a June 15 investor presentation that its batteries are anticipated to ship a virtually 500-mile vary on a single cost and greater than double a standard battery’s 8-year lifespan.
Ford Motor Firm and BMW AG have made it clear they’re bullish on Strong Energy’s skill to ship. The 2 OEMs led the battery developer’s $130 million Collection B in Might and signed joint growth agreements for automotive-scale batteries from Strong Energy’s pilot manufacturing line to be delivered in early 2022.
The SPAC transaction will probably be accomplished within the fourth quarter of 2021, Strong Energy stated. It’s anticipated to commerce on the NYSE below the ticker image “SLDP.”
Strong Energy is simply the most recent battery firm to go public by way of a SPAC in current months. One in every of its fundamental rivals, Volkswagen-backed QuantumScape, went public by way of a SPAC merger final September at a valuation of $3.Three billion. Earlier this 12 months, European battery producer FREYR and energy system developer Microvast additionally introduced mergers with so-called “blank-check” companies.