We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Solid Power (SLDP) & SK On Sign New Partnership Agreements
Read MoreHide Full Article
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.
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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Solid Power (SLDP) & SK On Sign New Partnership Agreements
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.