BMW is deepening its partnership with Solid Power 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 on Wednesday in a statement. The payments will be subject to meeting certain milestones.
Legacy carmakers such as BMW, Mercedes-Benz and Volkswagen 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 start-ups, including QuantumScape, are 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 have both invested in the company.
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“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 shake-up at Solid Power, after former chief executive Doug Campbell departed last month so the start-up could find a leader with more manufacturing expertise. The board appointed David Jansen, the company’s president, to serve as interim chief executive as it searches for a permanent top executive.
The new deal with BMW doesn’t include a licence to Solid Power’s intellectual property related to electrolyte material, which remains its core business, according to the release. – Bloomberg
