A company focused on developing solid-state batteries is exploring a SPAC merger, according to a report from Bloomberg.

What Happened: Solid Power is exploring a SPAC merger with Decarbonization Plus Acquisition Corp III (NASDAQ:DCRC).

A deal could value Solid Power at $1.2 billion and would come after the company raised $120 million in May from investors including Ford Motor Company (NYSE:F) and Bayerische Motoren Werke AG (OTC:BMWYY), better known as BMW.

Related Link: Bill Gates And Volkswagen Backed EV Battery Maker QuantumScape Going Public Via SPAC 

Why It’s Important: Solid-state batteries could speed up the wide adoption of electric vehicles. The batteries offer a safer and cheaper alternative to lithium-ion batteries.

Solid-state batteries are still in development by several companies, including Quantumscape (NYSE:QS), which has a market cap of more than $12 billion and completed a SPAC deal recently.

Ford and BMW expanded an existing joint development with Solid Power as part of the May investment. This deal secures solid-state batteries from Soldi Power for future electric vehicles from the company.

“Solid-state battery technology is important to the future of electric vehicles and that’s why we’re investing in it directly,” Ford Chief Product Platform Officer Hau Thai-Tang said in May.

Ford and BMW will receive batteries from the company in 2022 that are expected to cost less and be safer than existing lithium-ion alternatives.

“Solid Power now plans to begin producing automotive-scale batteries on the company’s pilot production line in early 2022 as a result of our partners’ continued commitment to Solid Power’s commercialization efforts,” Solid Power CEO Doug Campbell said.

DCRC Price Action: Shares of DCRC are up 0.94% to $10.75 at the time of publication Wednesday. Shares hit the $12 level in pre-market trading and rose over 6% in Tuesday’s trading session.

(Photo: Solid Power)