Solid Power is a High-Risk High-Reward Play in The EV Space

Photo of author
Written By Nathan Goldstein

Solid Power is a company that went public through a SPAC deal to raise capital for its cutting-edge product: the solid-state battery. This technology promises to be the most advanced battery on the market, offering much faster charging speeds and enhanced safety, eliminating risks like thermal runaway that can cause lithium-ion batteries to explode.

Additionally, solid-state batteries are projected to be more cost-effective and have a longer life cycle. However, like many SPAC ventures, the success of Solid Power hinges on its ability to execute these promises and sustain operations long enough to achieve mass production.

With the company’s share price having plummeted over 80% from its SPAC price of $10, it presents a speculative investment opportunity. If successful, the rewards could significantly outweigh the risks.

Financial Overview

Credits: DepositPhotos

In the most recent 10-Q filing for 2024, Solid Power reported a 57% year-over-year increase in revenue, primarily from joint development agreements (JDAs) with BMW, Ford, and SK On, alongside some government contracts.

Despite a 32% year-over-year decrease in direct costs, due to the completion of JDA milestones, these costs are expected to rise again as the company continues to fulfill its agreements.

Research and development expenses will continue to grow, reflecting the company’s aggressive phase of development and expansion to meet agreements and bring its product to market. Solid Power remains in the early stages of product development, requiring substantial capital to operate.

Solid Power’s Cash on Hand

As of the latest quarter, Solid Power had approximately $146 million in cash and marketable securities, along with an additional $232 million in long-term investments, and no debt. This financial position provides flexibility for the company to invest in R&D and product development. Management has indicated that the company will experience a lower cash burn over the coming quarters, aiding in its longevity.

For the full year, Solid Power projects revenues between $20 million and $25 million from JDA agreement milestones, representing a year-over-year increase of around 30% at the midpoint. The company’s ability to meet its milestone agreements with major partners like BMW, SK On, and Ford is crucial to its short-term stability.

Future Outlook

Solid Power’s proposed product offers significant advantages: dramatically improved charging times, reduced costs (15% to 30% cheaper than competitors), enhanced safety, and longer battery life.

However, as with many SPAC ventures, the promises are ambitious, and the company’s success depends on its execution.

Solid Power differentiates itself from other SPAC ventures by securing backing from prominent OEMs, including BMW, Ford, and SK On. These partnerships lend credibility and potential to Solid Power’s vision of revolutionizing EV battery technology.

However, there is still a considerable journey ahead. The transition to mass production is challenging, and the optimistic projections made during the SPAC deal may face delays and obstacles.

A pertinent example of such challenges is FREYR Batteries (FREY), which went public with promises of building its first gigafactory by 2023 and additional factories by 2028.

However, the company has yet to complete any promised factories and continues to burn cash, lagging behind its schedule. Similarly, Solid Power faces the risk of overpromising and under-delivering, which could jeopardize its partnerships and financial stability.


The solid-state battery field is becoming increasingly crowded, with numerous players investing in research and development. QuantumScape (QS) is one of Solid Power’s main competitors, with both companies striving to eliminate the range anxiety associated with current battery technology and capture market share from lithium-ion batteries.

Another significant competitor, ProLogium, recently signed a contract with France to begin mass production of their solid-state technology by 2027. This Taiwanese company, founded in 2006, has substantial expertise and is a formidable contender.

However, even if ProLogium achieves mass production first, Solid Power and QuantumScape could still compete effectively if their products prove to be more cost-efficient and superior in performance.

Lithium-ion batteries, currently dominating the market, continue to see cost reductions. China, led by Contemporary Amperex Technology (CATL), is the leader in lithium-ion production.

While some, like Tesla’s Elon Musk, argue that lithium-ion technology has further potential and that solid-state batteries are unnecessary, the growing interest and investment in solid-state technology suggest a competitive future.

Investment Considerations

Investing in Solid Power requires careful consideration of the risks and potential rewards. At around $1.80 per share, the company is more attractive now than at its SPAC price of $10. While there is a risk of further decline, the potential upside is substantial if Solid Power can successfully bring its product to market.

However, there are safer investment options with less risk over the next few years. For those willing to take on the speculative risk and keep the position size manageable, Solid Power could offer a high-reward opportunity if the company achieves its technological and production milestones. The backing from major OEMs adds a layer of confidence, but the path to success is fraught with challenges.

Solid Power: Intriguing Opportunity

Credits: DepositPhotos

Solid Power has a promising product with significant potential to revolutionize the EV battery market. The company’s strong financial position, high-profile partnerships, and innovative technology provide a solid foundation. However, the speculative nature of SPAC ventures and the competitive landscape present substantial risks.

For investors willing to take on these risks, Solid Power offers an intriguing opportunity. With careful monitoring and a small, speculative position, investors could potentially benefit from the company’s success in the coming years.


You should read and understand this disclaimer in its entirety before joining or viewing the website or email/blog list of (the “Publisher”). The information (collectively the “Advertisement”) disseminated by email, text or other method by the Publisher including this publication is a paid commercial advertisement and should not be relied upon for making an investment decision or any other purpose. The Publisher is engaged in the business of marketing and advertising the securities of publicly traded companies in exchange for compensation. The track record, gains, upside, and/or losses mentioned in the Advertisement, if any, should not be considered as true or accurate or be the basis for an investment. The Publisher does not verify the accuracy or completeness of any information included in the Advertisement. While the Publisher does not charge for the SMS service, standard carrier message and data rates may apply. To unsubscribe from receiving promotional text messages to your phone sent via an autodialer, using your phone reply to the sender’s phone number with the word STOP or HELP for help.

The Advertisement is not a solicitation or recommendation to buy securities of the advertised company. An offer to buy or sell securities can be made only by a disclosure document that complies with applicable securities laws and only in the states or other jurisdictions in which the security is eligible for sale. The Advertisement is not a disclosure document. The Advertisement is only a favorable snapshot of unverified information about the advertised company. An investor considering purchasing the securities, should always do so only with the assistance of his legal, tax and investment advisors. Investors should review with his or her investment advisor, tax advisor or attorney, if and to the extent available, any information concerning a potential investment at the web sites of the U.S. Securities and Exchange Commission (the "SEC") at; the Financial Industry Regulatory Authority (the "FINRA") at, and relevant State Securities Administrator website and the OTC Markets website at The Publisher cautions investors to read the SEC advisory to investors concerning Internet Stock Fraud at, as well as related information published by the FINRA on how to invest carefully. Investors are responsible for verifying all information in the Advertisement. As an advertiser, we do not verify any information we publish. The Advertisement should not be considered true or complete.

The Publisher does not offer investment advice or analysis, and the Publisher further urges you to consult your own independent tax, business, financial and investment advisors concerning any investment you make in securities particularly those quoted on the OTC Markets. Investing in securities is highly speculative and carries an extremely high degree of risk. You could lose your entire investment if you invest in any company mentioned in the Advertisement. You acknowledge that we are not an investment advisory service, a broker-dealer or an investment adviser and we are not qualified to act as such. You acknowledge that you will consult with your own independent, tax, financial and/or legal advisers regarding any decisions as to any company mentioned here. We have not determined if the Advertisement is accurate, correct or truthful. The Advertisement is compiled from publicly available information, which include, but are not limited to, no cost online research, magazines, newspapers, reports filed with the SEC or information furnished by way of press releases. Because all information relied upon by us in preparing an advertisement about an issuer comes from a public source, it is not reliable, and you should not assume it is accurate or complete.

By your subscription to our profiles, the viewing of this profile and/or use of our website, you have agreed and acknowledged the terms of our full disclaimer and privacy policy which can be viewed at the following link: and

By accepting the Advertisement, you agree and acknowledge that any hyperlinks to the website of (1) a client company, (2) the party issuing or preparing the information for the company, or (3) other information contained in the Advertisement is provided only for your reference and convenience. The advertiser is not responsible for the accuracy or reliability of these external sites, nor is it responsible for the content, opinions, products or other materials on external sites or information sources. If you use, act upon or make decisions in reliance on information contained in any disseminated report/release or any hyperlink, you do so at your own risk and agree to hold us, our officers, directors, shareholders, affiliates and agents harmless. You acknowledge that you are not relying on the Publisher, and we are not liable for, any actions taken by you based on any information contained in any disseminated email or hyperlink.