SEOUL (Reuters). South Korea’s SK Innovation plans to invest $30 Million in Solid Power Inc, a Ford Motor-backed firm that develops solid-state batteries. The companies intend to produce together, they said.

South Korean battery manufacturer, who supplies batteries for electric cars to manufacturers Ford Motor (NYSE) Co and Hyundai Motor Co will purchase shares in Decarbonization Plus Acquisition Corporation III. This shell company is where Solid Power intends to become public via a merger. The combined firm will be valued at approximately $1.2 billion.

Kim Jun, CEO at SK Innovation stated in a press release that Solid Power is expected to play a central role in delivering longer-range batteries with higher energy costs.

According to South Korean companies, it plans to spend 5.1 trillion won ($4.4billion) on battery plants in America.

Because they store more energy and charge quicker than lithium-ion, solid-state batteries could be a game-changer for electric cars (EVs).

However, they are more expensive and difficult to mass-produce and less prone to cracking.

Solid State’s CEO Doug Campbell said that existing factories could be used to make solid state batteries. He added that the company expected to be able to market its technology in 2026.

Campbell explained that solid state batteries can be used to create a simpler and lower-cost version of a battery pack.

($1 = 1,172.5200 won).