Solid Power revealed on Wednesday, Dec. 21, that its long-time investor, the BMW Group, is extending a collaborative design agreement to license its technology so that it may manufacture its own solid-state batteries in Germany.
BMW will be able to use Solid Power's expertise in battery research and development (R&D), cell layout, and production thanks to the partnership arrangement.
Solid Power's Tech
Colorado-based startup Solid Power is working to develop batteries using solid-state, sulfide-based electrolyte technology, according to Electrek. The company aspires to offer scalable cells to the electric vehicle (EV) industry at or near cost equivalence with existing lithium-ion batteries.
BMW invested in the startup in 2017. Since then, several manufacturers have followed suit, including Ford and Hyundai. A deal with SK Innovation was announced in October 2021.
Solid Power unveiled a prototype manufacturing line for solid-state batteries in June, with a deadline for delivering cells to Ford and BMW by the end of the year.
Solid Power has now announced that it would provide stable prototypes to BMW for use in testing EVs and provide access to its battery expertise to aid in developing the technology.
BMW's R&D License
According to a press statement issued by Solid Power this morning, the company has entered into a cooperative development agreement with BMW, strengthening its long-standing connection with the said firm.
BMW Group has licensed Solid Power's R&D, cell concept, and production methods to recreate Solid Power's pilot production line in Germany. This will allow BMW to create its own prototype battery cells.
To speed up the capabilities of the solid-state battery technology, both Solid Power and BMW Group plan to carry out complementary cell research and production operations at their respective locations as a consequence of the enlarged development agreement.
BMW Group has agreed to pay $20 million until June 2024 to Solid Power in return for the use of its patented, reliable technology and manufacturing expertise.
While the parties to the enlarged collaborative development agreement have opted to share confidential information about their respective battery systems, Solid Power's core product, electrolyte material, remains off-limits.
According to the firms, as BMW sets up its offshore solid-state pilot production line, its team will collaborate with the Solid Power staff at the latter's facilities to further improve the cell manufacturing processes.
Solid Power still anticipates supplying BMW with its electrolyte material for all prototype cell manufacture once the production line is up and operating in Germany.
David Jansen, interim chief executive officer, president, and chair of Solid Power, stated that the expansion of the alliance is an indication that Solid Power is making progress in the area of technological innovation.
Electrek reported that it is still unknown how other investors, such as Ford, would be impacted by Solid Power's deepening partnership with BMW Group and their pursuit of solid-state battery technology.
Earlier this week, another solid-state battery manufacturer, QuantumScape, reached a major milestone when it started shipping 24-layer battery cells to automobile OEMs for testing.
