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Silicon Battery Maker Amprius to Go Public in $1.3 Billion SPAC Merger


Amprius Applied sciences Inc. has reached a cope with a special-purpose acquisition firm that values the maker of silicon-anode batteries at about $1.3 billion and would take it public, firm officers stated.

Based mostly in Fremont, Calif., Amprius makes batteries that it says are extra highly effective than typical lithium-ion cells as a result of they use energy-dense silicon within the battery’s anode as a substitute of graphite, the normal materials. The corporate at present sells them to clients akin to

Airbus


EADSY 2.52%

SE and the U.S. Military to energy electrical plane and drones and says they will additionally be used for electric cars.

Amprius is combining with the transportation-focused SPAC Kensington Capital Acquisition Corp. IV in a deal that was unveiled Thursday.

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A number of different corporations, together with silicon-anode battery agency

Enovix Corp.

, are working to mass produce batteries that may retailer extra vitality and energy electrical automobiles additional between fees, developments that analysts say may make them extra mainstream and scale back the world’s reliance on fossil fuels.

Amprius says it’s distinctive as a result of it has been promoting merchandise commercially since 2018, has a patented design to make anodes utterly out of silicon and makes batteries robust sufficient to energy electrical plane, which haven’t obtained as a lot consideration from battery makers.

“We believe this will be a mainstream technology,”

Kang Solar,

CEO of Amprius, stated in an interview. He stated the corporate hopes to make use of the cash from the deal to scale its manufacturing capability and meet demand.

Based in 2008, Amprius joins many different clean-energy startups in reaching a SPAC deal to go public.

Additionally referred to as a blank-check agency, a SPAC is a shell company that raises cash and trades on a inventory trade with the intent of mixing with a non-public agency to take it public. After a deal is reached and authorized by regulators, the corporate going public replaces the SPAC within the inventory market. Such mergers have grow to be in style alternate options to conventional preliminary public choices previously few years, permitting corporations to lift money whereas accessing particular person traders.

Many startups that lately went public have hit technological roadblocks and have been harm by world supply-chain disruptions, sending share costs tumbling and slowing the pace of new activity up to now this 12 months.

Some corporations that beforehand introduced SPAC offers have terminated their mixtures. The marketplace for conventional IPOs has additionally cooled, harm by a broader stock-market selloff pushed by worries about excessive inflation and rising rates of interest. Quick-growing, unprofitable startups have been among the many hardest hit.

Justin Mirro,

the SPAC’s CEO, stated he’s assured within the merger due to its distinctive construction and the SPAC workforce’s expertise beforehand taking public solid-state battery startup

QuantumScape Corp.

and electric-vehicle charging firm

Wallbox

NV.

As a part of the deal, Amprius plans to lift $200 million in fairness from traders. That cash and the $230 million the Kensington SPAC raised in March might be used to broaden the enterprise, although SPAC traders can pull out their cash earlier than a deal goes by. Low share costs sometimes immediate such withdrawals.

To reduce withdrawals and inspire traders to maintain their cash within the deal, the Kensington SPAC offers traders an additional warrant permitting them to purchase further shares at a particular worth sooner or later.

Extra on SPACs

Learn associated protection, chosen by the editors:

Write to Amrith Ramkumar at amrith.ramkumar@wsj.com

Copyright ©2022 Dow Jones & Firm, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

Appeared within the Might 13, 2022, print version as ‘Battery Maker to Go Public through SPAC.’



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