Solvay and Origin Materials to Develop Advanced Carbon-Negative Materials for Automotive Industry
Origin Materials announced a collaboration with Solvay to develop advanced carbon-negative materials for the automotive industry. This partnership includes a multi-year capacity reservation agreement for a specialty polyamide aimed at supporting the decarbonization of automotive supply chains. Origin’s technology turns wood residues into materials, addressing a ~$1 trillion market. The collaboration aligns with the industry's push towards zero-carbon vehicles, helping to stabilize material pricing and promote sustainable practices as Origin prepares for its public listing through the merger with Artius Acquisition.
- Collaboration with Solvay to develop carbon-negative materials for the automotive industry.
- Multi-year capacity reservation agreement with Solvay for specialty polyamide, enhancing market presence.
- Origin's patented technology can tap into a ~$1 trillion addressable market.
- Expectations for stable pricing decoupled from volatile petroleum supply chain.
- Potential risks associated with the successful commercialization of products.
- Dependence on timely regulatory approvals and shareholder support for the proposed business combination.
- Uncertainty regarding customer demand and competition in the sustainable materials market.
Origin Materials, Inc. (“Origin Materials”), the world’s leading carbon negative materials company, and Solvay, a global leader in chemicals and materials, today announced a collaboration to develop and industrialize advanced materials built on the Origin Materials carbon-negative technology platform for applications in the automotive industry. In addition, Solvay has signed a multi-year capacity reservation agreement for carbon negative materials produced by Origin Materials to create a drop-in ready specialty polyamide, a polymer for internal combustion engine technology as well as e-mobility systems like e-motors and power electronics that can provide resistance to heat, toughness, corrosion, and operate at high voltages.
The companies believe the newly developed and industrialized materials will be in high demand from the automotive industry as it undertakes a massive global effort to decarbonize its supply chains in search of the “zero carbon” car.1 Solvay and Origin Materials aim to provide the automotive industry with drop-in ready materials solutions to enable the industry’s low-carbon transition.
The companies will work to rapidly develop and industrialize new products based on Origin Materials’ technology platform, leveraging Solvay’s leadership position as a provider of expertise and resources across global supply chains.
Origin Materials believes its patented technology platform, which turns inexpensive, sustainable wood residues into carbon-negative materials, will help to revolutionize the production of a wide range of end products, including clothing, textiles, plastics, packaging, car parts, tires, carpeting, toys, and more with a ~
In addition, Origin Materials’ technology platform is expected to provide stable pricing largely decoupled from the petroleum supply chain, which is exposed to more volatility than supply chains based on sustainable wood residues.
“We are thrilled that Solvay is becoming an Origin Materials Platform Partner,” said Origin Materials co-CEO Rich Riley. “The automotive industry is undertaking a massive transition to net zero. But electrification alone won’t be enough to get there. Without low-carbon and carbon negative solutions for materials, it simply isn’t possible to manufacture a zero-carbon car. By working together, Solvay and Origin Materials will help turn the automotive industry’s net zero ambitions into reality for countless brands. This collaboration is a significant step forward in our mission to enable the world’s transition to sustainable materials.”
“The cooperation with Origin Materials is a new important element in our continuous commitment to sustainability which, together with our customers, is at the heart of our operations and growth strategy,” said Mike Finelli, President of Solvay Specialty Polymers. “Today carbon negative-materials can be added to the evolution of our sustainability roadmap, which already includes different actions from the integrated use of renewables to generate electricity in our plants to pursuing more sustainable products with bio-sourced monomers or recycled content.”
About Origin Materials
Headquartered in West Sacramento, Origin Materials is the world's leading carbon negative materials company. Origin Materials’ mission is to enable the world’s transition to sustainable materials. Over the past 10 years, Origin Materials has developed a platform for turning the carbon found in non-food biomass into useful materials, while capturing carbon in the process. Origin Materials’ patented drop-in core technology, economics and carbon impact are supported by a growing list of major global customers and investors. Origin Materials’ first commercial plant is expected to be operational in 2022 with a second commercial plant expected to be operational by 2025 and plans for additional expansion over the next decade.
On February 17, 2021, Origin Materials and Artius Acquisition Inc. (“Artius”) (Nasdaq: AACQU, AACQ), a publicly-traded special purpose acquisition company, announced a definitive agreement for a business combination that will result in Origin Materials becoming a public company. Upon closing of the transaction, expected in the second quarter of 2021, the combined company will be named Origin Materials and remain listed on the Nasdaq under the new ticker symbol “ORGN.” The transaction, together with anticipated financing and grants, are expected to fully fund Origin Materials until EBITDA positive, and allow Origin Materials to scale and commence commercial production to meet signed customer offtake and capacity reservations of
For more information, visit www.originmaterials.com.
About Solvay
Solvay is a science company whose technologies bring benefits to many aspects of daily life. With more than 23,000 employees in 64 countries, Solvay bonds people, ideas and elements to reinvent progress. The Group seeks to create sustainable shared value for all, notably through its Solvay One Planet roadmap crafted around three pillars: protecting the climate, preserving resources and fostering a better life. The Group’s innovative solutions contribute to safer, cleaner, and more sustainable products found in homes, food and consumer goods, planes, cars, batteries, smart devices, health care applications, water and air purification systems. Founded in 1863, Solvay today ranks among the world’s top three companies for the vast majority of its activities and delivered net sales of
Important Information for Investors and Shareholders
In connection with the proposed business combination transaction, Artius filed a registration statement on Form S-4 (the “Registration Statement”) with the SEC on March 9, 2021, which includes a preliminary proxy statement to be distributed to holders of Artius’ ordinary shares in connection with Artius’ solicitation of proxies for the vote by Artius’ shareholders with respect to the proposed transaction and other matters as described in the Registration Statement, as well as the prospectus relating to the offer of securities to be issued to Artius’ shareholders and Origin Materials’ stockholders in connection with the proposed transaction. After the Registration Statement has been declared effective, Artius will mail a definitive proxy statement, when available, to its shareholders. Investors and security holders and other interested parties are urged to read the proxy statement/prospectus, any amendments thereto and any other documents filed with the SEC carefully and in their entirety when they become available because they will contain important information about Artius, Origin Materials and the proposed transaction. The documents relating to the proposed transaction (when they are available) can be obtained free of charge from the SEC’s website at www.sec.gov. Free copies of these documents, once available, may also be obtained from Artius by directing a request to: Artius Management LLC, 3 Columbus Circle, Suite 2215, New York, New York 10019.
Cautionary Note on Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the federal securities laws, including with respect to the proposed transaction between Origin Materials and Artius. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding Origin Materials’ business strategy, estimated total addressable market, commercial and operating plans, product development plans and projected financial information. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of the management of Origin Materials and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on as, a guarantee, an assurance, a prediction, or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of Origin Materials and Artius. These forward-looking statements are subject to a number of risks and uncertainties, including that Origin Materials may be unable to successfully commercialize its products; the effects of competition on Origin Materials’ business; the uncertainty of the projected financial information with respect to Origin Materials; disruptions and other impacts to Origin Materials’ business as a result of the COVID-19 pandemic and other global health or economic crises; changes in customer demand; Origin Materials and Artius may be unable to successfully or timely consummate the proposed business combination, including the risk that any regulatory approvals may not obtained, may be delayed or may be subject to unanticipated conditions that could adversely affect the combined company or the expected benefits of the business combination, or that the approval of the stockholders of Artius or Origin Materials may not be obtained; failure to realize the anticipated benefits of the business combination; the amount of redemption requests made by Artius’ stockholders, and those factors discussed in the Registration Statement under the heading “Risk Factors,” and other documents Artius has filed, or will file, with the SEC. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that Origin Materials presently does not know, or that Origin Materials currently believes are immaterial, that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect Origin Materials’ expectations, plans, or forecasts of future events and views as of the date of this press release. Origin Materials anticipates that subsequent events and developments will cause its assessments to change. However, while Origin Materials may elect to update these forward-looking statements at some point in the future, Origin Materials specifically disclaim any obligation to do so. These forward-looking statements should not be relied upon as representing Origin Materials’ assessments of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements.
Participants in the Solicitation
Artius, Origin Materials and their respective directors, executive officers and employees and other persons may be deemed to be participants in the solicitation of proxies from Artius’ shareholders in connection with the proposed business combination. Information about Artius’ directors and executive officers and their ownership of Artius’ securities is set forth in the Registration Statement described above. Additional information regarding the interests of those persons and other persons who may be deemed participants in the proposed transaction may be obtained by reading other documents Artius has filed, or will file, with the SEC regarding the proposed business combination, including the definitive proxy statement when it becomes available.
Non-Solicitation
This communication is not a proxy statement or solicitation of a proxy, consent or authorization with respect to any securities or in respect of the potential transaction and shall not constitute an offer to sell or a solicitation of an offer to buy the securities of Artius, the combined company or Origin Materials, nor shall there be any sale of any such securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of the Securities Act of 1933, as amended.
1 “The zero-carbon car: Abating material emissions is next on the agenda,” McKinsey & Company, September 18, 2020. |
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