Solid-State Battery Maker ProLogium to Go Public in SPAC Deal

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(Bloomberg) — ProLogium Technology Co. agreed to merge with a blank-check firm in a deal that the company says values it at about $3.8 billion, joining a growing number of next-generation battery makers going public via SPACs.

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ProLogium’s transaction with Translational Development Acquisition Corp., a Nasdaq-listed special purpose acquisition company, follows a path taken by industry rivals including QuantumScape Corp. and Solid Power Inc. By bypassing the traditional initial public offering process, ProLogium aims to tap the financial markets more quickly.

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“The company has reached an inflection point in its mass production,” said Vincent Yang, ProLogium founder and chief executive officer, in an interview. Proceeds from the deal will be used to increase manufacturing and fund the construction of a factory in Dunkirk, France, the company said in a statement on Wednesday. The effort is backed by a subsidy package of as much as €1.4 billion from the French government, it said.

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Founded in 2006, Taiwan-based ProLogium is at the forefront of developing so-called solid-state batteries, often described as the “holy grail” of energy storage. Unlike conventional lithium-ion batteries, which rely on liquid electrolytes, these cells utilize solid conductive materials.

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Solid-state batteries can deliver more power and faster charging times. They are also safer, as they reduce the use of flammable electrolytes, if not eliminate the contents completely. Analysts at BloombergNEF estimate that global demand may reach 181 gigawatt-hours by 2030, a ninefold increase from current levels. 

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But the road to greater adoption remains challenging, due to high costs and technical hurdles to mass production. Currently, less than 10% of planned global solid-state battery capacity has been commissioned, with China accounting for about 99% of that total, according to BNEF. 

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ProLogium’s facilities in Taiwan are capable of producing as much as 1 gigawatt-hour worth of battery cells annually, with plans to potentially triple capacity by the early- to mid-2030s depending on market dynamics. The company’s plans for a factory in France may add another 4 gigawatt-hours of capacity by 2030. 

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For now, most of ProLogium’s batteries are sold to drone makers, defense manufacturers and satellite companies. Yang expects that to change as production scales and costs decline. By 2032, about 60% of ProLogium’s products will likely be for electric vehicles, he said.  

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Solid-state batteries may help EV drivers overcome range anxiety, or the fear of running out of charge. At the Consumer Electronics Show in Las Vegas earlier this year, ProLogium teamed up with FEV Group to showcase a battery module capable of a 620-mile range on a single charge, roughly double that of many current premium EVs. ProLogium counts German automaker Mercedes-Benz Group AG among its backers.   

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The market for solid-state batteries is already crowded, however. Contemporary Amperex Technology Co., the world’s largest lithium-ion battery manufacturer, is investing heavily, while Volkswagen-backed QuantumScape and Mercedes-backed Factorial Energy are also vying for dominance.

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Investors in the public markets have approached solid-state battery companies with caution. Shares of QuantumScape and Solid Power are trading at roughly 75% below their peak levels in late 2021.

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Yang said he isn’t concerned, citing the company’s progress in mass production as a potential draw for investors. 

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Cohen & Company Capital Markets and Credit Agricole CIB advised Prologium on the deal.

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