In the world of electric vehicles, the chase on autonomous driving technology and battery technology are two key elements to becoming a global leader. In this episode, let’s discuss a new baby battery company in the market.
🎙Decarbonisation Plus Acquisition Corp III (DCRC)🛡
The company is a direct competitor to QuantumScape. The newly formed solid-state electric vehicle battery technology company is expected to gain hype as the merger of a SPAC format is approved, which will value the company at more than $500 million in fresh capital.
The symbol is expected to change to SLDP in tonight’s trading hours. It is yet another counter for exposure to the EV battery technology company for new investors. Ford and BMW back solid Power.
👍What’s so great about solid-state battery🚘
In a typical lithium-ion battery, the facilitator is in liquid form. In the solid-state format, it aims to create such a battery without having any liquid electrolyte. In China, CATL is also investing in solid-state batteries.
The benefits are enormous. Such batteries aim to lower costs and allow quicker charging capabilities with a safer and longer battery life. But unfortunately, the market has not seen any company creating a large-scale automotive nature solid-state battery. Moreover, it is challenging to develop since such battery packs tend to work under very high pressure to avoid defects from creating that could worsen battery performance. Hence, they are more difficult to develop compared to the lithium-ion version.
🛹Should you be Investing?💵
The company is far from the revenue-generating phase. However, it does have a lofty projection of about $1 billion in sales by 2027. Investors will need to gauge the milestone and development to ensure viability for early investing mode. After all, the company is just in the pioneer stage of doing a sample to validate its technology in 2022. When such samples are proven acceptable, investors can explore how the production could scale up and increase the wider testing adoption by EV companies.
As the road is less travelled, early startups’ potential rewards are juicy. For example, solid Power stock (after the SPAC merger) is valued at around $2.2 billion compared to QuantumScape, which is currently valued at around $11 billion.
It is a stock that Pika World will be exploring!
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Pika Nat
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