Ideal Power ships devices to fourth Tier 1 automotive supplier

AUSTIN, Texas - Ideal Power Inc. (NASDAQ:IPWR) announced Tuesday it has begun collaborating with a fourth global Tier 1 automotive supplier that serves several top 10 global automotive manufacturers. The company, currently trading near its 52-week low of $3.77, maintains a strong balance sheet with more cash than debt, according to InvestingPro data.

The company said it has shipped its B-TRAN devices to the supplier and is working with multiple engineering teams on using B-TRAN-enabled contactors as potential replacements for electromechanical contactors in electric and hybrid vehicles.

"We are pleased to announce the recent shipment of devices to a fourth Tier 1 automotive supplier," said Dan Brdar, President and CEO of Ideal Power, in a press release statement.

Contactors are safety devices that disconnect electric vehicle subsystems from the battery during crashes, faults, or when systems are not operational. Typical EVs use 5 to 8 contactors to disconnect the battery from various vehicle systems.

According to the company, B-TRAN-enabled solid-state contactors offer advantages over traditional electromechanical versions, including faster response times that eliminate arcing, improved reliability, lower conduction losses, and programmable safety features.

The semiconductor-based contactors are bidirectional, which the company claims reduces the number of switches required by half compared to conventional designs. Ideal Power also stated its technology provides lower losses than contactors using silicon carbide semiconductor devices at a lower cost.

This collaboration adds to Ideal Power’s previously announced engagements with three global automakers, including Stellantis, and three other Tier 1 automotive suppliers.

The company develops bidirectional semiconductor power switches for electric vehicle, renewable energy, energy storage, and other industrial applications.

In other recent news, Ideal Power Inc. reported its first-quarter 2025 earnings, revealing a smaller-than-anticipated loss per share and a remarkable revenue increase. The company’s earnings per share (EPS) were -$0.30, better than the forecasted -$0.35, while revenue reached $12 million, significantly surpassing the expected $900,000. Despite these positive financial results, the company’s stock experienced a minor decline. Ideal Power has made strategic advancements, including a new sales partnership and progress in product innovation, maintaining a strong cash position with no debt. The company also announced the completion of solid-state circuit breaker prototypes ahead of schedule and secured a design win with an Asian manufacturer. Analysts from firms like Westpark Capital have shown interest, with discussions highlighting potential design wins that could drive profitability. Ideal Power anticipates a revenue ramp-up in the latter half of 2025, with modest commercial revenue expected in Q2. The company continues to focus on expanding its presence in the electric vehicle and industrial markets.

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