Solid Power, Inc. (NASDAQ:SLDP), a manufacturer in the miscellaneous electrical equipment and supplies industry, disclosed an extension of its joint development agreement with BMW (ETR:BMWG) of North America, LLC. The agreement, which began on July 1, 2017, was extended through an amendment signed on Monday, June 21, 2024.
The amendment, known as Amendment No. 5, extends the term of the joint development agreement (JDA) to September 30, 2024. Additionally, it revises the payment schedule that was effective from November 1, 2022, under the previous amendment, Amendment No. 4.
This collaborative effort between Solid Power and BMW is focused on advancing Solid Power's technology in the sector. BMW Holding B.V., an affiliate of BMW, retains the right to nominate a director to Solid Power’s board and designate a non-voting observer to board meetings.
Solid Power operates as a wholly owned subsidiary of Solid Power, Inc., and is incorporated in Delaware. The company's securities, including common stock and warrants, are listed on The Nasdaq Stock Market under the symbols "SLDP" and "SLDPW," respectively.
In other recent news, Solid Power, a prominent player in solid-state battery technology, has reported modest revenue growth in the first quarter of 2024, with figures just under $6 million. Despite operating expenses of $31.7 million leading to an operating loss of $25.8 million, the company maintained a healthy liquidity position, ending the quarter with $379 million. Solid Power continues to uphold its revenue guidance for 2024, which is projected to be between $20 million and $25 million, with total cash investment expected to range from $100 million to $120 million.
The firm's recent developments also include strategic collaborations with industry heavyweights such as SK On, BMW, and Ford (NYSE:F), indicating its commitment to enhancing its global reach. This is further evidenced by its expansion into the Korean market. The company is also investing in research and development to advance its technology, with plans for a new facility in Parsdorf, Germany.
InvestingPro Insights
Solid Power, Inc. (NASDAQ:SLDP) continues to foster its relationship with BMW, which is a positive sign for investors looking at the long-term potential of the company. InvestingPro data reveals that Solid Power has experienced a significant revenue growth of 46.22% over the last twelve months as of Q1 2024, indicating an upward trajectory in its financial performance. Moreover, despite challenges in profitability, the company holds a strong liquidity position with more cash than debt on its balance sheet, which is crucial for sustaining operations and funding future growth. With a market capitalization of $272.65 million and a price to book ratio of 0.57 as of Q1 2024, the company is potentially undervalued in comparison to its assets.
InvestingPro Tips highlight that analysts are anticipating sales growth in the current year for Solid Power, which aligns with the company's recent revenue trends. However, the company is also quickly burning through cash, which investors should monitor closely. Additionally, while the stock has experienced volatility with a 7.78% drop over the last week, Solid Power's liquid assets exceed its short-term obligations, providing some financial stability. For investors seeking more comprehensive analysis and additional tips, there are 13 more InvestingPro Tips available, which can be accessed through the company's profile on Investing.com/pro/SLDP. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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