ZincFive Inc., a data center battery maker, agreed to merge with Spark I Acquisition Corp., a SparkLabs-backed SPAC, at a $600 million pre-money valuation. The Oregon-based company, which doubled revenue to $69.9 million last year, will use proceeds to expand production and clear an $81 million order backlog.

CEO Tod Higinbotham said the deal provides $100 million in committed PIPE funding plus up to $25 million from the SPAC trust. All existing shareholders will roll 100% of their equity into the combined entity. ZincFive plans to scale its two Chinese facilities while scouting U.S. locations for a third plant.

The company's nickel-zinc batteries offer advantages for data center backup power, providing immediate full-power surges to start generators without being flammable. Unlike lithium-ion alternatives, these batteries excel at handling short-duration power spikes during data synchronization. Co-founder Tim Hysell noted ZincFive is the only company delivering nickel-zinc technology to data centers.

SparkLabs brings connections including Vint Cerf and investments in Anthropic, OpenAI, Kraken, and Discord. The boards approved the merger, with Nasdaq trading under symbol ZFIV expected in the second half of the year. This transaction reflects growing demand for specialized battery solutions in the expanding data center market.