BMW deepens its partnership with Solid Power
MUNICH: BMW AG is deepening its partnership with Solid Power Inc as it seeks to lock in an emerging battery technology that could help lower the cost of its electric vehicles.
BMW will pay Solid Power $20 million through June 2024 for the proprietary technology, including its solid-state electrode design and manufacturing expertise, the companies said Wednesday in a statement. The payments will be subject to meeting certain milestones.
Legacy carmakers such as BMW, Mercedes-Benz AG and Volkswagen AG are inking deals with battery makers, raw material suppliers and software firms as they develop fully new platforms for their EVs. Among the key issues they face are increasing driving range and cutting costs.
Solid Power and several other startups, including QuantumScape Corp, pursuing solid-state batteries, an innovation that holds the promise of dramatically speeding up EV adoption by providing automakers with a safer, cheaper alternative to lithium-ion batteries. BMW and Ford Motor Co have both invested in the company.
“We look forward to working even more closely with Solid Power and adding the capability to produce solid-state cells based on Solid Power’s designs at our own pilot facility,” BMW management board member Frank Weber said. “We expect this agreement to accelerate the installation of our solid-state prototype line and our companies’ mutual goal of commercialising this promising cell technology”.
The deal comes amid a leadership shakeup at Solid Power, after former Chief Executive Officer Doug Campbell departed last month so the startup could find a leader with more manufacturing expertise. The board has appointed David Jansen, the company’s president, to serve as interim CEO while it searches for a permanent top executive.
The new deal with BMW doesn’t include a license to Solid Power’s intellectual property related to electrolyte material.