Solid Power: BMW's Demo Car Could Charge A Stock Rebound

SLDP's Share Price and Market Performance - SLDP's share price has declined by 80% since its IPO in 2021, despite significant progress in its battery program [7][10] - The company's shares are up 19% year-to-date, outperforming the Russel 2000 index, but still trading at a 40% discount to its tangible assets [10] - The decline in share price is attributed to rising interest rates, SPAC-deal overpricing, and market disconnection from technological advancements [7] Financial Position and Capital Strategy - SLDP has $147 million in cash and marketable securities, with projected operating cash outflows of$70-90 million for the remaining three quarters of 2024 [8] - The company holds an additional $232 million in long-term investments that can be liquidated if needed [8] - SLDP's capital-light model focuses on licensing its technology, avoiding the costs and complexities of manufacturing battery cells [8] - The company is forecasted to have enough funds to operate until the end of 2026, with potential capital raising activities in 2025 [7] Technological Progress and Partnerships - SLDP's most advanced program is its Silicon-anode cell, which has a lower theoretical energy density compared to anode-less lithium metal batteries [9] - The company is collaborating with BMW, which is building a new SSB facility in Germany leveraging SLDP's technology [8] - SLDP is also working with SK ON to build a manufacturing facility in South Korea, with capex expected to moderate lower starting in 2025 [8] - BMW is testing SLDP's Sample A-2 silicon-anode batteries, with plans to test Sample B cells in a demo car next year [10] Battery Development and Market Dynamics - SLDP's battery development follows a standardized roadmap with distinct stages (Sample A, B, and C), each involving an 18-month cycle of testing and refinement [10] - The company's electrolyte technology is compatible with established battery chemistries such as NMC and LFP cathodes [9] - The price of commonly used battery chemistries like LFP and NMC has declined significantly over the past 18 months due to over-production and softening EV growth [13] - SLDP's SSB cells offer advantages in energy density, safety, and longevity, but their adoption will depend on cost considerations [13] Future Milestones and Potential Catalysts - BMW's upcoming demo car featuring SLDP's solid-state battery could reignite interest in the company's undervalued stock [10] - The completion of expansion construction projects in 2024 is expected to lower capex spending starting in 2025 [8] - The company's Sample B and Sample C cells will be critical in assessing the economic feasibility of commercial-scale production [9]