Is SLDP Stock the Next QuantumScape? 7 Things to Know as Solid Power Starts Trading.

Today, Solid Power (NASDAQ:SLDP) made its debut on the Nasdaq exchange after 99.9% of shareholders of Decarbonization Plus Acquisition Corp. voted to approve the SPAC (special purpose acquisition company) merger. Solid Power will receive gross proceeds of roughly $573 million, which includes $195 million worth of PIPE (private investment in public equity) investments.

A hand holds an electric vehicle battery charger up to a car.
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Solid Power operates as a solid-state electric vehicle (EV) battery maker. Due to its high energy density, solid-state batteries are thought to be more safe and stable than lithium-ion batteries. As the name suggests, solid-state batteries don’t contain liquid electrolytes, so the risk of fire or explosion is decreased. Many consider solid-state batteries to be the next big innovation in battery technology. However, the technology is still in the early stages of development, and they are therefore more costly than lithium-ion batteries. Prices will likely go down as further technological improvements emerge.

The company’s co-founder and CEO Doug Campbell had high hopes about the merger:

“Solid Power has spent the last ten years developing all-solid-state battery technology that is designed to deliver the increased performance demanded by both automakers and consumers. We are excited to have completed our business combination with DCRC and we are looking forward to our future as the only pure-play solid-state company trading on the public markets.”

Some investors may be wondering how Solid Power differs from current leader QuantumScape (NYSE:QS). Most notably, the two companies are pursuing different materials to use in their solid-state batteries. The former company is currently testing out sulfide, while QuantumScape is testing out ceramic.

Will SLDP stock be the next QuantumScape? Here’s what you should know.

7 Things to Know as SLDP Stock Begins Trading

  1. Solid Power is backed by Ford (NYSE:F) and BMW. Ford invested in the company during 2019, and BMW led a $135 million funding round in May.
  2. CEO Doug Campbell stated that gross proceeds from the SPAC transaction will go toward funding the business until its first anticipated commercial launch with an automaker in 2026. The automaker is expected to be either Ford or BMW, or both.
  3. Solid Power’s batteries could potentially provide nearly 500 miles of distance on a single charge. This figure is 50% to 75% greater than any commercially available lithium-ion battery today.
  4. The total addressable market (TAM) for solid-state batteries is $220 billion.
  5. The SPAC merger values Solid Power at an implied $1.2 billion enterprise value.
  6. Additionally, warrants for the battery maker are tradable under the ticker SLDPW.
  7. Solid Power remains a risky investment since it doesn’t have a proven product yet. However, the potential is extremely high, as is the TAM.

On the date of publication, Eddie Pan did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

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