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Chardan Research sees upside for Solid Power (NASDAQ:SLDP) after the company recently expanded its partnership with Korean conglomerate SK On. Analyst Brian Dobson said the expanded agreement should generate around $50M for Solid Power (SLDP) through three fee streams (R&D $20M, production line installation $22M, and electrolyte sales $10M).
Looking ahead, the firm views the agreement as a long-term strategic positive that should bolster the SLDP’s growth initiatives in Korea. Dobson and team continue to view SLDP’s unique model as attractive given it seeks to license cell designs and wholesale its proprietary solid electrolyte.
Chardan’s price target of $5 on the solid-state battery developer was derived by applying a 3X multiple to the firm’s 2030 adjusted EBITDA estimate. The multiple was called justified due to the timeline for commercialization being several years out.
Shares of Solid Power (SLDP) slipped 9.05% in afternoon trading on Wednesday to $1.36. The stock is down more than 50% over the last six months. Earlier in the day, Solid Power (SLDP) announced that its board authorized repurchase of up to $50M of the company’s common stock.
Background: Solid Power (SLDP) is developing all-solid-state battery cell technology that replaces the liquid or gel electrolytes used in conventional lithium-ion battery cells with a sulfide-based solid electrolyte. We focus solely on the development and commercialization of all-solid-state battery cells and solid electrolyte materials, primarily for the fast-growing battery-powered electric vehicle market. You can find out more about Solid Power’s products
