Solid Power Shares Surge on Positive News from Competitor
Solid Power (NASDAQ:SLDP) has experienced a significant increase in its stock price today, following an announcement from fellow solid-state battery maker QuantumScape (NYSE:QS). As of 2:45 p.m. ET, Solid Power shares were up 11.2%, while QuantumScape shares were soaring by 47%. This surge in stock price comes after a battery unit of Volkswagen Group, a potential customer and partner of QuantumScape, confirmed that their solid-state battery technology has achieved over 1,000 charging cycles without losing any charging capacity. This equates to over 300,000 miles an electric car could travel without losing any battery range.
This news is a game-changer for the electric vehicle industry, as one of the main concerns for consumers has been the lack of charging infrastructure. With most existing EVs having a range of 250 to 300 miles, range anxiety has been a major barrier for consumers to transition to electric vehicles. With the potential of solid-state battery technology to eliminate range anxiety, investors are showing a strong interest in companies like Solid Power and QuantumScape.
While this news is certainly positive for the solid-state battery sector, it is important to note that commercialization of this technology is still a few years away. Solid Power has partnered with BMW for testing, but does not expect to be able to scale its battery cells to high-volume production until 2028. Similarly, QuantumScape does not expect to commercialize its technology for another two years. These lengthy timelines have caused some investors to sell their shares in these companies over the past year.
Both Solid Power and QuantumScape have sufficient liquidity to continue testing their technology with automakers. If solid-state batteries are able to eliminate range anxiety, there is significant potential for growth in these companies.
The recent positive news from QuantumScape has had a ripple effect on the solid-state battery sector, causing a surge in stock prices for companies like Solid Power.
