Ford, BMW Invest $130 Million in Electric Vehicle Battery Technology

On May 3, 2021, solid-state electric vehicle battery manufacturer Solid Power announced a new $130 million investment led by BMW, Ford, and Volta Energy Technologies.

According to Solid Power, the investment will help produce automotive-scale, sulfide-based solid-state batteries. The money will also help increase material output and ramp up in-house production capabilities. Solid Power hopes to have the pilot production line up and running by early 2022.

BMW and Ford plan to implement solid-state battery technology in new electric vehicles. The new batteries could provide longer ranges at a lower cost with a safer design than lithium-ion batteries. What’s unique is that making these new batteries can be integrated into existing lithium-ion cell production processes.

According to Ford, solid-state batteries are promising because they don’t use the liquid electrolyte found in conventional lithium-ion batteries. They can be lighter with greater energy density, which provides cost and range improvements. Another potential benefit from the consumer? More space in the cabin and for storage.

Solid Power is currently making 20 ampere hour (Ah) multi-layer solid-state batteries on a continuous roll-to-roll production line, using industry-standard lithium-ion production processes and equipment.

Last year, Solid Power sent hundreds of production line-produced battery cells to Ford and BMW for validation. Approval from two major automakers led to the product’s commercialization.

In 2022, Ford and BMW will receive full-scale 100 Ah cells for automotive qualification testing and vehicle integration.

The third major investor, Volta Energy Technologies, is a venture capital firm spun out of the U.S. Department of Energy’s Argonne National Lab. Volta focuses on new energy storage and battery technologies.

For Ford, the investment builds upon a heavy push in battery technology investment. On April 27, 2021, the company announced Ford Ion Park, a $185 million collaborative learning lab in Southeast Michigan dedicated to developing, testing and building vehicle battery cells and cell arrays. The 200,000 square-foot lab will use state-of-the-art equipment to pilot new manufacturing techniques and should open late next year.

As a result of the investment, Ford and BMW become equal equity owners and add representatives to Solid Power’s board.