Solid Power extends partnership with Ford through 2025

Solid Power, Inc. (NASDAQ:SLDP), a developer of solid-state battery technology, has amended its joint development agreement with Ford Motor Company (NYSE:F), extending their partnership until December 31, 2025. The agreement, initially established in December 2018 and subsequently modified, solidifies the continued collaboration between the two companies on Solid Power's innovative battery technology.

With a current market cap of $197 million, the company maintains a strong liquidity position, holding more cash than debt on its balance sheet and a healthy current ratio of 6.88x. InvestingPro analysis reveals 12 additional key insights about Solid Power's financial position.

The amendment, announced Tuesday, includes revisions to certain deliverables and a new schedule for delivery to Ford during the extended term. This collaboration is aimed at advancing Solid Power's solid-state batteries, which are anticipated to offer higher energy density and safety compared to conventional lithium-ion batteries.

The third amendment to the joint development agreement, which was signed on Monday, reflects the ongoing commitment between Solid Power and Ford to push forward the boundaries of electric vehicle battery performance. The specifics of the agreement highlight an alignment of objectives and a shared vision for the future of electric mobility.

Solid Power's stock has been traded on The Nasdaq Stock Market LLC under the ticker SLDP, with associated warrants under the ticker SLDPW. The stock has experienced significant volatility, declining 35% over the past six months and currently trading at $1.09.

As a company based in Louisville, Colorado, Solid Power has been focusing on the development of batteries that could potentially transform the electric vehicle industry by providing safer and more efficient power sources. Get deeper insights into Solid Power's valuation and financial health with a comprehensive InvestingPro Research Report, part of our coverage of 1,400+ US equities.

This development is a significant step for Solid Power as it continues to work towards commercializing its solid-state battery technology. The extended partnership with Ford, a leading global automaker, underscores the potential impact of Solid Power's technology on the automotive industry. Analyst consensus suggests potential upside, with price targets ranging from $1 to $3, though the company faces near-term challenges with an expected decline in net income this year.

In other recent news, Solid Power, Inc. reported its third-quarter 2024 financial results, revealing a net loss despite a strong liquidity position. The company, which is on track to meet its 2024 goals, announced its selection to negotiate a potential $50 million grant from the U.S. Department of Energy. This grant is intended to enhance the production of solid electrolyte materials for advanced all-solid-state batteries.

Solid Power reported a revenue of $4.7 million in Q3 2024, primarily from SK On agreements and government contracts. However, with operating expenses standing at $32.2 million, the company incurred a net loss of $22.4 million. Despite this, Solid Power maintains a robust liquidity position, boasting $348.1 million in cash as of September 30, 2024.

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