Slide 1: A New Breed of Battery Investor Presentation
A New Breed of Battery Investor Presentation June 2021
Slide 2: Disclaimer
Disclaimer INDUSTRY AND MARKET DATA Although all information and opinions and or other information expressed in this presentation (this “Presentation”), including market data and other statistical information, were obtained from sources believed to be reliable and are included in good faith, Solid P
Slide 3: Disclaimer (cont'd)
Disclaimer (cont’d) IMPORTANT INFORMATION AND WHERE TO FIND IT In connection with the Proposed Business Combination, DCRC plans to file a registration statement on Form S-4 (the “RegistrationStatement”) with the SEC, which will include a proxy statement/prospectus of DCRC. DCRC also plans to file ot
Slide 4: Risk Factors
Risk Factors RISK RELATED TO DEVELOPMENT AND COMMERCIALIZATION RISK RELATED TO LIMITED OPERATING HISTORY We face significant challenges in our attempt to develop our products and produce them at high volumes with We are an early stage company with a history of financial losses and expect to incur si
Slide 5: Risk Factors (cont'd)
Risk Factors (cont’d) RISKS RELATED TO LEGAL AND REGULATORY COMPLIANCE RISKS RELATED TO THE BUSINESS COMBINATION We are subject to regulations regarding the storage and handling of various products. We may become subject to Following the consummation of the Business Combination, DCRC’s sole material
Slide 6: Transaction Summary
Transaction Summary Decarbonization Plus Acquisition Corporation III (NASDAQ: DCRC) is a publicly listed special purpose acquisition company with Offering Size approximately $350 million of cash held in trust. DCRC has entered into a business combination agreement with Solid Power PIPE size of $165
Slide 7: Solid Power is the Leader in All-Solid-State Batteries
Solid Power is the Leader in All-Solid-State Batteries (“ASSBs”) Developing and producing OEM-validated batteries and materials on industry standard equipment Company Highlights Key Investment Highlights 8 Years of R&D Disruptive, Scalable Business Model Addressing ~$500bn+ Market1 Founded in 2012 P
Slide 8: Solid Power's All-Solid-State Platform is a Revolutionary Advancement
Solid Power’s All-Solid-State Platform is a Revolutionary Advancement Significant improvements over lithium-ion Range Battery Life Safety Cost Next Gen Compatible More than Lower material with next gen double the Non-volatile, 482 vs 266 miles1 and pack system cathodes current 8-year 100% solid-stat
Slide 9: Real Results on the Path to Commercialization
Real Results on the Path to Commercialization Rapid performance and manufacturing achievements with only $39mm of invested capital through Q1 2021 20 Ah 2 Ah 2020 0.2 Ah 2020 2019 22-Layer, 9 x 20 cm Cell 1-Layer, 5 x 10 cm Cell 10-Layer, 5 x 10 cm Cell Automotive Dimensions Independently tested by
Slide 10: World-Class Partners are Committed to Electric Vehicles
World-Class Partners are Committed to Electric Vehicles 25 electrified BEV, W PHEV models by 22bn by 2025 2023 into electrification, nearly 2x its previous commitment “By 2022, each of our four automotive plants Ford is “all in and will not cede ground to in Germany will be capable of manufacturing
Slide 11: Experienced Management Team
Experienced Management Team Extensive history in battery science, materials and manufacturing Doug Campbell Pu Zhang TaeheeHan Co-Founder / CEO, Chairman VP, R&D Head of Strategic Partners Startup veteran with extensive experience in Former Director of Research at NavitasSystems Former R&D Manager a
Slide 12: Highly Experienced Pro Forma Board
Highly Experienced Pro Forma Board SLDP Doug Campbell Dave Jansen Erik Anderson Executive Chairman, Co-Founder / CEO President CEO, DecarbonizationPlus Acquisition CorpIII Startup veteran with extensive experience in Experienced hardware executive with experience CEO and Founder of WestRiverGroup de
Slide 13: Table of Contents
Table of Contents Compelling Market Opportunity Products and Technology Commercialization Roadmap Financials and Valuation Appendix Supplemental Technical Data 13
Slide 14: Compelling Market Opportunity
Compelling Market Opportunity Section 1 14
Slide 15: The Electric Vehicle Transition is Underway
Compelling Market Opportunity The Electric Vehicle Transition is Underway When produced at scale, All-Solid-State Batteries are expected to rapidly capture significant market share Annual Global Passenger EV Sales EV Battery Total Addressable Market1 (Millions of Vehicles Sold) ($ in Billions) 45 50
Slide 16: Superior Energy Density is Central to the Pursuit of All-Solid-State
Compelling Market Opportunity Superior Energy Density is Central to the Pursuit of All-Solid-State 1600 Technologies on Solid Power product roadmap ASSB: Li Metal + Next Gen Cathode 1400 Performance LiNi0.5Mn1.5O4 LiNiPO4 Improvement Projected Tesla 1200 4860 cells 1000 1 2 / L 3 800 NMC (811) WH NC
Slide 17: Auto OEMs are Committed to the Solid-State Value Proposition
Compelling Market Opportunity Auto OEMs are Committed to the Solid-State Value Proposition “The automaker is searching for “The company announced a massive “Our new, state-of-the-art articulated manufacturing engineers to develop 150kWh battery with a difference. For a “The technology is a potential
Slide 18: And Our Partners Have Chosen... the Platform
Compelling Market Opportunity And Our Partners Have Chosen… … the Platform 18
Slide 19: The All-Solid-State Value Proposition
Compelling Market Opportunity The All-Solid-State Value Proposition Step function improvements over lithium-ion projected in essential areas ASSB Price Net of Incremental Value to Auto OEM2 Vehicle range1 Calendar life $/kWh cell price 482 miles >2x $142 / kWh ( 80% ) (Li-ion: 8 years) Safety Cost N
Slide 20: The Industry Leaders are Pursuing a Sulfide-Based Solution
Compelling Market Opportunity The Industry Leaders are Pursuing a Sulfide-Based Solution Competing electrolyte material pathways to enable All-Solid-State Commentary Polymer Oxide Sulfide Polymer Oxide Sulfide Small temperature performance Conductivity an order of Highest ionic conductivity; Conduct
Slide 21: Industry Leader in Scalable, Truly Solid, All-Solid-State Batteries
Compelling Market Opportunity Industry Leader in Scalable, Truly Solid, All-Solid-State Batteries Proven Manufacturing Industry Validation All-Solid-State Process Only known company Cell performance No liquids and gels with operating validated by multiple enhances safety and roll-to-roll inorganic A
Slide 22: History of Success
Compelling Market Opportunity History of Success Inception Contract Secured 1st Development Series A Funding Tangible Progress… Founded in 2012 by Doug Won $2.9mm contract with the Agreement Signed Announced closing of first round Delivery and validation of 0.2 Ah cells by OEMs in the Campbell, Conr
Slide 23: Products and Technology
Products and Technology Section 2 23
Slide 24: Two Product Groups
Products and Technology Two Product Groups Sulfide Solid Electrolytes Energy Dense Pouch Cells Proprietary solid electrolytes tuned Proprietary design and production for high conductivity and lithium of industry leading all-solid-state metal stability cells Best all-around performing solid Low-cost
Slide 25: The Most Advanced Known Solid Electrolytes
Products and Technology The Most Advanced Known Solid Electrolytes Only Solid Power develops and produces at pilot scale and tests in large format cells on a scalable production line Conductivity Best all-around solid electrolyte materials produced using low-cost, scalable processes All precursors a
Slide 26: One Flexible All-Solid-State Platform
Products and Technology One Flexible All-Solid-State Platform Solid Power’s solid electrolyte can accommodate existing and prospective cathode and anode materials Core Technology: Flexible platform allows use of alternative anode + cathode materials to suit specific performance requirements Solid El
Slide 27: Solid Power Product Roadmap
Products and Technology Solid Power Product Roadmap High-content silicon anode battery accelerates and de-risks delivery of industry leading technology to auto OEMs 390 Wh/ kg, 930 Wh/ L 1,000+ cycle life1 440 Wh/ kg, 930 Wh/ L <15 min charge1 (10 90%) 1 1,000+ cycle life High-Content Silicon <20 mi
Slide 28: Superior Performance and Value Expected to Drive Mass Market Adoption
Products and Technology Superior Performance and Value Expected to Drive Mass Market Adoption 77 kWh pack: Today’s lithium-ion vs. Solid Power High-Content Silicon Lithium Metal Anode Product Anode Product Today’s % Today’s % Lithium-Ion Improvement Lithium-Ion Improvement System System 329L 184 L 4
Slide 29: Proven MWh-Scale Prototype Production Line
Products and Technology Proven MWh-Scale Prototype Production Line Nearly identical production process to lithium-ion; future lithium-ion process improvements expected to be transferable Since inception, compatibility with lithium-ion manufacturing processes Electrode has been fundamental to Solid P
Slide 30: Click Here to Learn More About Our Solid Power Cell Pilot Line
Products and Technology CLICK HERE TO LEARN MORE ABOUT OUR SOLID POWER CELL PILOT LINE 30
Slide 31: Defined Path to Lithium-Ion Cost Parity
Products and Technology Defined Path to Lithium-Ion Cost Parity Solid Power’s All-Solid-State Batteries cells -costs vs. time 100% 90% A 6.5 MWh / yr Cell costs are currently dominated by labor and Li-precursor materials 80% prototype pilot line Auto A and B Sample Cell bill of materials cost (“BOM”
Slide 32: Commercialization Roadmap
Commercialization Roadmap Section 3 32
Slide 33: Uniquely Positioned for Rapid Development and Scaleup
Commercialization Roadmap Uniquely Positioned for Rapid Development and Scaleup Solid Power is focused across the core value chain Key Sulfide-Based All-Solid-State Developers Electrolyte Precursor Production Electrolyte Areas Development Development Electrolyte Production Key Cell Development Cell
Slide 34: 2017 vs Now
Commercialization Roadmap 2017 vs Now TODAY 2017 Material Material Pouch Cell Manufacturing Pouch Cell Manufacturing Development Development Charging Charging Energy Throughput Energy Throughput Rate Rate 2C(1) 320 Wh/ kg >100 / week 0.1C 250 Wh/ kg ~2 / week As-measured specific Max at room tempera
Slide 35: Pathway to Vehicle Start-of-Production
Commercialization Roadmap Pathway to Vehicle Start-of-Production (“SOP”) High-content silicon and lithium metal anode development timelines Pre A-Sample A-Sample B-Sample C-Sample D-Sample 2020 2021 2022 2023 2024 2025 2026 2027 Product Solid Electrolyte Refine Product Mass Production High-Content S
Slide 36: High-Content Silicon Anode Battery Roadmap
Commercialization Roadmap High-Content Silicon Anode Battery Roadmap Improvements in cell-level energy achieved through well-defined cell design optimization plan Anode Composite Pre A-Sample A-Sample Target B-Sample Target Anode Current Anolyte 320 Wh/ kg, 740 Wh/ L1 340 Wh/ kg, 770 Wh/ L 390 Wh/ k
Slide 37: Lithium Metal Anode Battery Roadmap
Commercialization Roadmap Lithium Metal Anode Battery Roadmap Improvements in cell-level energy achieved through well-defined cell design optimization plan Pre A-Sample A-Sample Target B-Sample Target Li Metal 320 Wh/ kg, 550 Wh/ L1 360 Wh/ kg, 760 Wh/ L 440 Wh/ kg, 930 Wh/ L Anode Current Pouch Ene
Slide 38: Financials and Valuation
Financials and Valuation Section 4 38
Slide 39: Pro Forma Equity Ownership
Financials and Valuation Pro Forma Equity Ownership US$ in millions, unless otherwise stated Sources and Uses Capitalization SOURCES USES SHARE PRICE $10.00 DCRC Cash In Trust1 $350 Rollover Equity $1,239 Pro Forma Shares Outstanding3 184.2 PIPE Proceeds 165 Cash to Balance Sheet1 599 Equity Value $
Slide 40: Summary Projected Financials
Financials and Valuation Summary Projected Financials US$ in millions, unless otherwise stated 2021E 2022E 2023E 2024E 2025E 2026E 2027E 2028E ~800k vehicles annually (assumes 100kWh pack) VOLUMES ~10% market share of BMW and 3RD PARTY MANUFACTURING (GWH) 0.1 0.4 6 50 80 Ford’s 7.8mm vehicle sales E
Slide 41: Considering a Framework for Solid Power's Valuation
Financials and Valuation Considering a Framework for Solid Power’s Valuation Leading ASSB Platform Technology Capital Light Business Model Long-Standing Partnership – Ford and BMW Robust Margins 256% 29% 0.7x Proven Roll-to-Roll Manufacturing Capability Compelling Valuation 2026 -28 2028 EV / 2028 R
Slide 42: Valuation Benchmarking
Financials and Valuation Valuation Benchmarking EV / Revenue Battery LiDAR Hydrogen EV Enablers Transaction Value Technology at Announcement 10.4x 9.4x 8.3x 8.7x 5.9x 3.5x 3.6x 1.8x 0.5x 2.3x 0.7x 0.5x 2028 2028 2025 2024(2) 2025 2025 2023 2023 (1) EV / EBITDA Battery LiDAR Hydrogen EV Enablers Tran
Slide 43: Operational Benchmarking
Financials and Valuation Operational Benchmarking Revenue CAGR Battery LiDAR Hydrogen EV Enablers Technology 384% 256% 3.3x 154% 80% 48% 42% 37% 22% 2026 -28 2026 -28 2023 -25 2022 -24(2) 2023 -25 2023 -25 2021 -23 2021 -23 (1) EBITDA Margin Battery LiDAR Hydrogen EV Enablers Technology 44% 29% 25%
Slide 44: Solid Power Offers a Compelling Valuation with Significant Upside
Financials and SOLID POWER Valuation Solid Power Offers a Compelling Valuation with Significant Upside Post-Money Discounted Future Enterprise Value Enterprise Value Enterprise Value Multi–Pronged Platform Upside $16.7bn $10.0bn Apply a range of 6.0x – 10.0x EV / Revenue multiple to Solid Power’s $6
Slide 45: Appendix
Appendix 45
Slide 46: Validation from Automotive OEMs
Appendix Validation from Automotive OEMs Automotive OEMs recognize the importance of All-Solid-State to the future of EVs and Solid Power’s leadership BMW Overview Ford Overview German premium vehicle manufacturer with American vehicle manufacturer with “Ford and BMW now share leading positions in t
Slide 47: Solid Power Battery Ecosystem
Appendix Solid Power Battery Ecosystem Partnering Across the Supply Chain Innovating Where it Matters Leveraging Our Core Competencies Material Suppliers & Producers 1 Solid Power Electrolyte Sourcing and Production Solid Power Electrolyte Catholyte Next Gen Active of Cell Materials Cell Design / Pr
Slide 48: Key Performance Metric Definitions
Appendix Key Performance Metric Definitions Category Description Energy Density Measure of how much energy a battery contains relative to its weight (Wh/ kg) or volume (Wh/ L) Power Density Measure of the max rate of charge / discharge per weight of battery Charge Rate Time (in minutes) it takes to
Slide 49: A-D Sample Definitions
Appendix A-D Sample Definitions Category Description Use Solid Power Cell Format Proof of concepts or functions to ensure basic requirements as a Pre-A Sample Proof of concept 0.2 Ah,2 Ah & 20 Ah prototypes product or process Cell ConceptValidation (CV) based on Probe multiple designs and material c
Slide 50: Solid Power Manufacturing Process Savings
Appendix Solid Power Manufacturing Process Savings Eliminating formation cycling is crucial to the ASSB process Conditioning Removal of Conditioning Eliminates ~29% of 80% of = capex in a typical GWh-scale Conditioning Li-Ion production plant steps Final storage Pre-formation Aging Degassing Formati
Slide 51: All-Solid-State Enables Further Cost Savings at the Pack-Level
Appendix All-Solid-State Enables Further Cost Savings at the Pack-Level Virtual Teardown of a Notional EV Battery Pack EV Battery Pack Cost Proportions1 Battery Housing Cover Aluminum Crash Structure 17% Junction Box (aluminum sheet) Housing Tray 6% Battery Frame 3% 5% Cooling 60% system No cooling
Slide 52: EUCAR Hazard Levels
Appendix EUCAR Hazard Levels Cell hazard levels are the outcome of performed safety tests and are classified under the EUCAR Hazard level table HAZARD LEVEL DESCRIPTION CLASSIFICATION CRITERIA & EFFECT Safety levels are <=4 for: 0 No effect Noloss of functionality Current state-of-the-art cells Cell
Slide 53: Supplemental Technical Data
Supplemental Technical Data
Slide 54: High-Content Silicon Cell Energy Density
Supplemental Technical Data High-Content Silicon Cell Energy Density: >1000 Wh/ L Path to 100 Ah Si-NMC Pouch Cell with up to 420 Wh/ kg & 1020 Wh/ L (in charged state) Reduced Electrolyte-Separator Thickness Increased Cathode Layer Specific Capacity 450 1100 450 1100 Energy 1000 Energy Today 1000 4
Slide 55: Lithium Metal Cell Energy Density
Supplemental Technical Data Lithium Metal Cell Energy Density: >1000 Wh / L (Deposited Li) Path to 100 Ah Li-NMC Pouch Cell with up to 475 Wh/ kg & 1015 Wh/ L (in charged state) Reduced Electrolyte-Separator Thickness Increased Cathode Layer Specific Capacity 600 1200 600 1200 Today 550 550 Energy 1