AUSTIN, Texas - Ideal Power Inc. (NASDAQ: IPWR), a company specializing in bidirectional semiconductor power switch technology, announced today that it has received orders from a leading global Tier 1 automotive supplier. The unnamed NYSE-listed company, which supplies sensors and electrical protection components to automotive OEMs, has shown interest in Ideal Power's B-TRAN™ devices for use in electric vehicle (EV) applications.
The orders cover a range of products including discrete B-TRAN™ devices, a SymCool® power module, a solid-state circuit breaker evaluation board, and a driver. These components are intended for solid-state EV contactor applications, which are crucial for safety in EVs as they isolate high voltage components such as the battery and inverter.
Ideal Power's President and CEO, Dan Brdar, expressed satisfaction with the new partnership, emphasizing the company's intent to expand its customer base among auto OEMs and Tier 1 suppliers. Brdar highlighted the success with Stellantis (NYSE:STLA) as a catalyst for attracting additional clients in the automotive industry.
Contactors are essential for EV safety, disconnecting power in the event of a collision or during maintenance. The EV contactor market is projected to exceed $3.7 billion by 2025, and Ideal Power anticipates that solid-state contactors could replace traditional electromechanical contactors in a significant portion of this market. Solid-state contactors are praised for their speed, reliability, and cost-effectiveness compared to their electromechanical counterparts.
Ideal Power focuses on its patented B-TRAN™ semiconductor technology, which aims to enhance energy control solutions across various sectors, including electric vehicles, renewable energy, and industrial applications.
The company's forward-looking statements suggest optimism about the potential displacement of electromechanical contactors by solid-state alternatives, as well as the advancement of other Tier 1 suppliers from initial orders to custom development agreements.
This news is based on a press release statement and reflects Ideal Power's current business developments and market expectations.
In other recent news, Ideal Power Inc. announced its financial results for the second quarter of 2024, which featured strategic partnerships and technological advancements. The company has formed collaborations with a third global automaker and secured a significant distribution agreement in Asia. Simultaneously, Ideal Power has qualified a second wafer fabrication supplier and secured orders for their B-TRAN devices and circuit breaker evaluation boards from global leaders in the power semiconductor and power electronic solutions industry.
Despite reporting minimal revenue and a net loss of $2.7 million for the quarter, the company remains confident in its expansion strategy, focusing on automotive and industrial markets. The company has also increased the current rating of SymCool Power Modules by 25%, reduced their size by 50%, and plans to begin third-party reliability testing and automotive qualification in the third quarter of 2024.
Ideal Power is also expanding its patent estate and maintaining trade secrets around their proven process flow. The company expects to start third-party testing for automotive qualification in the third quarter of 2024. Despite current financial losses, the company's focus on technological innovation and strategic partnerships sets a foundation for potential growth in the evolving power semiconductor and electronic solutions industry.
InvestingPro Insights
Ideal Power Inc.'s recent order from a leading global Tier 1 automotive supplier aligns with several key financial indicators and market trends. According to InvestingPro data, Ideal Power has a market capitalization of $57.47 million, reflecting its position as a niche player in the semiconductor industry. This new partnership could potentially boost the company's revenue, which stood at $0.14 million for the last twelve months as of Q2 2024.
InvestingPro Tips suggest that Ideal Power's net income is expected to grow this year, and analysts anticipate sales growth in the current year. These projections are particularly relevant given the company's recent success in attracting automotive industry clients, as mentioned in the article. The expected growth could be partly attributed to the expanding EV contactor market, which the company is targeting with its B-TRAN™ technology.
It's worth noting that while Ideal Power holds more cash than debt on its balance sheet, providing financial flexibility for research and development, the company was not profitable over the last twelve months. However, analysts predict that the company will be profitable this year, which could be influenced by developments like the new automotive supplier orders.
For investors seeking more comprehensive analysis, InvestingPro offers 12 additional tips for Ideal Power, providing a deeper understanding of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.