US-headquartered solid-state battery provider Solid Power raised a $130m series B round, which was co-led by automotive manufacturers BMW and Ford Motor Company and venture capital firm Volta Energy Technologies. The company had previously attracted other corporate backers. Battery producer A123 Systems and automotive component producer Sanoh. Hyundai Cradle, Samsung Venture Investment and Solvay Ventures – on behalf of carmaker Hyundai, electronics manufacturer Samsung and chemical producer Solvay respectively – had committed capital to it in 2018. The series B round came after the company closed its $26m series A round in October last year, in which, according to a regulatory filing, Ford had supplied an undisclosed amount.
Founded in 2012 and spun out of University of Colorado Boulder, Solid Power provides all solid-state batteries (ASSB) that utilise solid electrodes and electrolytes rather than the liquid or polymer electrolytes used in lithium-ion batteries. The batteries are for use in electric vehicles and the company claims they are safer than conventional lithium-ion batteries, while producing 50% to 100% more energy density. The company’s technology is intended to be customisable, and Solid Power will supply full-scale battery cells for BMW and Ford so they can be tested and ultimately integrated into the companies’ vehicles by 2022.
Solid Power is part of the broader batteries and energy storage tech space which has attracted the attention of many corporate investors over the past few years, as the GCV Analytics bar chart below shows. The number of corporate-backed deals last year reached 39, close to all time high of 40, and a total estimated capital $1.45bn. These figures may not seem as impressive for two major reasons. Firstly, likely not all funding in this space is disclosed, as competition is strong and the stakes in terms of disruption are very high. Secondly, the space itself is very capital intensive and requires a longer investment horizon, so it is not apt for all venture investors.
