Solid Power, Inc. (SLDP - Free Report) has taken its partnership with SK On, a leading global electric vehicle battery developer, a step further with three new contracts: a research and development license, a line installation arrangement and an electrolyte supply deal. The agreements can help Solid Power expand its footprint in South Korea and consolidate its existing relationship with SK On.
Per John Van Scoter, president and CEO of Solid Power, as the company progresses toward commercialization, the deepened relationship with SK On would strengthen its competitive position.
The agreements will increase overall collaboration and development on Solid Power's solid-state cell technology. It will allow SK ON to use Solid Power’s cell technology for research and development, as well as to manufacture batteries on SK On solid-state line in Korea.
Per Scoter, the company expects to strengthen its cash position as it executes the contracts.
After achieving the milestone and desired electrolyte deliveries, Solid Power expects to receive a minimum revenue of $50 million from these combined contracts.
Per the research and development license, SK On will license Solid Power’s solid-state cell designs and manufacturing processes in exchange for a total of $20 million from 2024 to 2027. The scope of the license will be limited to research and development activities, and SK On will not be able to use it for commercial cell production.
Per the line installation arrangement, Solid Power will design, procure and install a new cell manufacturing line at SK On’s Korea facility in exchange for an estimated amount of $22 million. Construction of the line will start in 2024 and is expected to finish in 2025.
Per the electrolyte supply agreement, initially, SK On will purchase Solid Power’s electrolyte to validate its new solid-state line. Post validation, SK On will be required to buy at least eight metric tons of electrolyte from Solid Power by 2030. Solid Power expects to receive a minimum of $10 million from these electrolyte sales.
Zacks Rank & Key Picks
SLDP currently carries a Zacks Rank #3 (Hold).
Some better-ranked players in the auto space are Volvo (VLVLY - Free Report) , Mercedes-Benz Group AG (MBGAF - Free Report) and NIO Inc. (NIO - Free Report) . While VLVLY and MBGAF each sport a Zacks Rank #1 (Strong Buy) at present, NIO carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for VLVLY’s 2023 sales and earnings suggests year-over-year growth of 4.2% and 73.1%, respectively. The EPS estimates for 2023 and 2024 have improved by 4 cents and 3 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for MBGAF’s 2023 sales implies year-over-year growth of 5.8%. The EPS estimates for 2023 and 2024 have moved up a penny and 30 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for NIO’s 2023 sales indicates year-over-year growth of 10.4%. The EPS estimate for 2023 has improved by 2 cents in the past 30 days. The EPS estimate for 2024 has improved by 4 cents in the past seven days.
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Solid Power, Inc. (SLDP - Free Report) has taken its partnership with SK On, a leading global electric vehicle battery developer, a step further with three new contracts: a research and development license, a line installation arrangement and an electrolyte supply deal. The agreements can help Solid Power expand its footprint in South Korea and consolidate its existing relationship with SK On.
Per John Van Scoter, president and CEO of Solid Power, as the company progresses toward commercialization, the deepened relationship with SK On would strengthen its competitive position.
The agreements will increase overall collaboration and development on Solid Power's solid-state cell technology. It will allow SK ON to use Solid Power’s cell technology for research and development, as well as to manufacture batteries on SK On solid-state line in Korea.
Per Scoter, the company expects to strengthen its cash position as it executes the contracts.
After achieving the milestone and desired electrolyte deliveries, Solid Power expects to receive a minimum revenue of $50 million from these combined contracts.
Per the research and development license, SK On will license Solid Power’s solid-state cell designs and manufacturing processes in exchange for a total of $20 million from 2024 to 2027. The scope of the license will be limited to research and development activities, and SK On will not be able to use it for commercial cell production.
Per the line installation arrangement, Solid Power will design, procure and install a new cell manufacturing line at SK On’s Korea facility in exchange for an estimated amount of $22 million. Construction of the line will start in 2024 and is expected to finish in 2025.
Per the electrolyte supply agreement, initially, SK On will purchase Solid Power’s electrolyte to validate its new solid-state line. Post validation, SK On will be required to buy at least eight metric tons of electrolyte from Solid Power by 2030. Solid Power expects to receive a minimum of $10 million from these electrolyte sales.
Zacks Rank & Key Picks
SLDP currently carries a Zacks Rank #3 (Hold).
Some better-ranked players in the auto space are Volvo (VLVLY - Free Report) , Mercedes-Benz Group AG (MBGAF - Free Report) and NIO Inc. (NIO - Free Report) . While VLVLY and MBGAF each sport a Zacks Rank #1 (Strong Buy) at present, NIO carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for VLVLY’s 2023 sales and earnings suggests year-over-year growth of 4.2% and 73.1%, respectively. The EPS estimates for 2023 and 2024 have improved by 4 cents and 3 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for MBGAF’s 2023 sales implies year-over-year growth of 5.8%. The EPS estimates for 2023 and 2024 have moved up a penny and 30 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for NIO’s 2023 sales indicates year-over-year growth of 10.4%. The EPS estimate for 2023 has improved by 2 cents in the past 30 days. The EPS estimate for 2024 has improved by 4 cents in the past seven days.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
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