Louisville-based electric vehicle battery maker Solid Power inked a deal with South Korean company SK Innovation to manufacture its solid-state batteries.

The memorandum of understanding will “enable SK Innovation to produce automotive-scale all-solid-state battery cells utilizing Solid Power’s sulfide-based solid electrolyte, proprietary cell designs and production processes,” the companies announced Wednesday.

“The partnership with SK Innovation is designed to validate that Solid Power’s all-solid-state production processes are scalable and compatible with existing lithium-ion production technology,” said CEO Doug Campbell in a statement. “The ability to collaborate with a global leader in lithium-ion cell production is key to our go-to-market strategy and meeting anticipated demand.”

Solid Power has been riding a wave of momentum in 2021 that includes deals with Ford and BMW, plans to go public and in September the company opened a new production facility in Thornton. Its Louisville location at the Colorado Technology Center remains open.

Solid Power develops “all-solid-state” rechargeable battery cells for electric vehicles and “mobile power markets.” “Solid power replaces the flammable liquid electrolyte in conventional lithium-ion battery with a proprietary sulfide-based solid electrolyte.”

Solid Power is in the process of merging with Decarbonization Plus Acquisition Corp. III (NASDAQ: DCRC). The merger with the publicly traded special purpose acquisition company would result in Solid Power going public, likely in Q4 if all SEC approvals are in place.

The new manufacturing deal will allow Solid Power to “deliver pre-commercial all-solid-state cells to the Company’s automotive customers for qualification testing,” according to the company. “Solid Power’s Silicon EV Cell is expected to be safer, provide longer range, and cost less than today’s leading lithium-ion batteries.”

In addition to the manufacturing help, SK Innovation agreed to invest $30 million in Solid Power through a “subscription to purchase shares in DCRC’s previously announced PIPE transaction,” according to the release.

“We are delighted to partner with Solid Power, an industry-leading sulfide-based all-solid-state technology company,” said Dr. Lee Seongjun, chief technology officer of SK Innovation, in a release. “We expect our partnership with Solid Power will play a pivotal role in delivering higher energy, lower-cost batteries to power longer range electric vehicles.”