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Historically, writing on Seeking Alpha, I have been a major proponent of the battery industry, from electric vehicles to consumer electronics. Currently, Solid Power (NASDAQ:SLDP ) is developing highly scalable solid-state batteries at the cutting edge of the industry. In the past, my coverage has been focused on one of Solid Power's most significant competitors: QuantumScape ( QS). However, I believe that Solid Power at today's prices offers investors the best opportunity to get in on the early stages of a battery powerhouse.

Solid Power December 2021 Investor Deck

There are two sides to Solid Power's business model. The first is the technology side which encompasses all scientists and R&D to ensure the technology and cells are working efficiently. The company has surpassed far beyond lithium-ion technology and is now establishing a competitive advantage within multiple emerging battery technologies. Li-ion batteries may have powered us through the early days of this technological revolution, but the amount of energy we need will not be met with Li-ion in the future. Lithium-ion batteries are also very costly for the environment as many of them end up as waste due to their mass production. Solid Power has ensured that they can fund themselves through the end of 2026.

Solid Power has made many technological innovations. The company is pushing forward battery technology and expanding the category with its institutional funding. This has led to reliable R&D developments and multiple battery pathways. These developments will be significant because there are numerous ways that Solid Power can pivot in the future. Being involved in many electric vehicle battery projects allows Solid Power to see where the industry is moving and divert its assets accordingly.

Solid Power December 2021 Investor Deck

The company is developing batteries in a way that is intelligent from a technological and business standpoint. By creating three distinctly different batteries, the company can operate in multiple markets. In addition to the relations they already have, and the technology they are developing, Solid Power's IP will be essential for future growth and development of the stock. The IP is where the value is up until commercialization, and, right now, the commercialization timeline should remain on schedule for 2025.

Solid Power December 2021 Investor Deck

Solid Power's battery cycling results stack up and are very impressive. QuantumScape typically doesn't test over 1000 cycles, and Solid Power has managed to a proprietary solid-state high silicon content electric vehicle battery. Using silicon, researchers replace the graphite-based anode with a silicon-based anode. Using silicon in the anode will be crucial because the battery can cycle 10x more than commercially available batteries. This is why Solid Power will be the choice for electric vehicle companies and OEM's looking forward.

Having connections with established car manufacturers is crucial for any burgeoning battery company. With the business model Solid Power has set up, they are well-positioned to have their cells be commercially successful in 2025 and become the go-to choice for these companies. Their ties are arguably deeper with the OEMs than with other battery companies. This is the unique advantage that needs to be recognized by investors because what Solid Power has is the technology, the scientists, the IP, and the major car manufacturers have investments in Solid Power.

Solid Power December 2021 Investor Deck

Influential car makers such as BMW (OTCPK:BMWYY) and Ford (F) are backing Solid Power. There will be various opportunities to set up various manufacturing facilities in the US and Europe, and China. Overall, the endorsement from these companies is a strong indicator of future success and will be necessary for the company's future growth.

Solid Power December 2021 Investor Deck

Solid Power's up there with major competitors in terms of their commercial timeline. Production of these cells is already underway, and Solid Power is well on its way to fully commercializing the world's all sulfide-based solid-state batteries. This will be a significant move in electric vehicles because OEM money is betting on this technology to increase across the electric vehicle market. By being interested in Solid Power, there is always the potential for future partnerships and future integration along the OEMs supply chain.

The risks to the long-term growth thesis are relatively low compared to other smaller electric vehicle battery endeavors. Most other projects are focused on expanding slightly beyond the Li-ion space, but Solid Power focuses on three different projects, lowering their risk profile. Also, their cells are performing far beyond early predictions, and the company will soon thoroughly validate all their technology. However, there are some sector-related risks. QuantumScape is the main competitor in this space. Small companies such as SES AI (SES) also have fast-growing competitors with prominent OEM backers. Companies such as GM (GM), Hyundai (OTCPK:HYMTF), Kia, Honda (HMC) have all committed money or agreed to work with SES AI in some way. However, SES AI is much smaller than Solid Power and doesn't have the advanced timeline that solid Power has. The two leading players I see in the battery space moving forward are QuantumScape and Solid Power. These two companies will likely operate as a strong duopoly in the industry as their batteries have performed best across various metrics. QuantumScape and Solid Power have an advantage over other companies from cycle length to retention. I believe this unique advantage to expand and Solid Power will have a sustainable advantage moving forward. Even though there are risks involved at today's prices and climate, Solid Power is a good buy for the continuing mass commercialization of electric vehicles.

The recent sell-off of technology stocks has left Solid Power far below where they were estimated via SPAC. Investors can take advantage of Solid Power's unique positioning. The connections and technological advantage the company has are far beyond what the vast majority of other public battery companies can offer. At today's prices, the company represents an excellent opportunity to acquire shares far below what the company listed on the public market for.

Solid Power December 2021 Investor Deck

The deal to bring Solid Power through SPAC has given the company the needed positioning to benefit from public investments. Through SPAC, the company has been left with $350 million from Decarbonization Plus Acquisition Corp. and $165 million from the deal. This will provide the liquidity needed to scale up factories. In turn, this will eliminate some of the reliance on these OEMs and give Solid Power flexibility when it comes to their future monetization model. Solid Power at these prices needs to be on every growth investor's watchlist.

Solid Power is an excellent company at a compelling price. The strong liquidity pool and the unique positioning within the industry makes Solid Power worth watching. Investors should take advantage of shares at these levels and take the gamble on Solid Power.

I look forward to analyzing future earnings and third-party tests when the company releases them.

This article was written by

Disclosure: I/we have a beneficial long position in the shares of SLDP, F, GM, VWAGY, QS either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.