Ideal Power Inc (NASDAQ:IPWR) is ahead of schedule on the joint development program in connection with its first major design win for solid-state circuit breakers, thanks to a collaborative partnership and an efficient integration process.
Ideal Power’s B-TRAN based solution easily fits within the customer's existing design for a circuit breaker product. This will reduce the time to market for the customer’s initial B-TRAN enabled breaker product. This program is about three months ahead of schedule, with circuit breaker prototypes now expected to be completed, tested and shipped to the customer in late March or early April, to be followed by commercial sales later in 2025.
The customer initially approached Ideal Power with a circuit breaker that wasn’t meeting performance expectations, asking for a higher-performing alternative that could fit within the same enclosure.
Brdar told Proactive that the customer had explored other technologies, including silicon carbide-based devices, but faced challenges with cost and conduction losses—critical considerations in continuously conducting applications. Ideal Power’s technology provided a more efficient and cost-effective solution, ultimately driving the accelerated program timeline.
In the following Q&A, Brdar discusses the company’s progress, market strategy, and what’s next for Ideal Power.
Proactive: What were some of the highlights of the quarter for you?
Dan Brdar: For us, the key highlight was reaching full engagement with several customers we've been working with for quite some time. We’ve moved beyond just educating them about our technology and how it works. Now, we're actively involved in product design activities with them—integrating our technology into their specific products. That’s a significant milestone because it signals that we’re in the design win process.
You recently conducted a program review with Stellantis. What feedback did you receive, and how does it impact the next phase of your EV drivetrain inverter program?
One of the great things was that we were able to bring together all the different groups within Stellantis—teams in the U.S., France, and Italy, spanning engineering and production—so everyone was aligned. This gave us the opportunity to share the results from the first phases of our testing and, most importantly, provide a direct performance comparison of our solution against conventional semiconductors like IGBTs and advanced materials like silicon carbide MOSFETs. We demonstrated that we have the low-loss switching solution for their application, which was a significant validation.
We also worked closely with Stellantis’ engineering teams to ensure the comparisons were conducted on a level playing field. Additionally, briefing them on our work with EV contactors alongside other OEMs and Tier 1 suppliers was well received. They were actively looking for a solution and realizing that we were already on that path was an exciting moment for them.
What key steps remain before B-TRAN enters the commercial sales ramp starting later this year, and how confident are you in the current timeline?
We expect to continue seeing sales from the companies we’re working with as part of their evaluation process. The solid-state circuit breaker we announced in December will be the first true commercial product to incorporate our technology. That’s why we’ve worked hard to complete it ahead of schedule. Originally set for the end of the second quarter, we’re now on track to finish by late March or early April, allowing us to get prototypes into their hands sooner.
This will enable them to start selling and engaging with their customers, and we want them to bring it to market as quickly as possible. Competitors will take notice, and while we’re already working with many of them, seeing a commercialized product in the market will likely accelerate their efforts.
We expect them to engage with their customers in Q2. We’ll be meeting with them to review their timeline, as we’ve informed them that we’re well ahead of schedule. This will give us visibility into their needs—who their target customers are, when we need to be ready to supply parts, and in what quantities. We’ll also be having commercial discussions around their ramp-up plans.
Your first SSCB design win could generate over $1 million of revenue in its second year. How does this align with your broader expectations for scaling B-TRAN adoption across other customers?
Those numbers come directly from the customer we're working with. We rely on them to outline their plans for product rollout and adoption, specifically for this first product we're developing together. Our hope and expectation are that if this product succeeds, it will be the first of many incorporating our technology.
We have a roster of large global companies evaluating our technology for potential inclusion in their OEM products and several more in the queue in early-stage discussions. Given the size of these companies, any one of them could represent millions of annual revenues to us over time. And a few key design wins could get us to profitability.
With a $1 billion serviceable addressable market opportunity in solid-state switchgear and $1.4 billion in energy and power, what differentiates B-TRAN from competing technologies in these sectors?
Take a circuit breaker, for example—it’s designed to protect equipment connected to the grid. Since it’s a continuously conducting device, it must be as low-loss and efficient as possible. Any electricity that doesn’t pass through the breaker is converted into heat, which needs to be dissipated, ultimately leading to lost kilowatt-hours. That’s why minimizing conduction losses is critical.
Our technology enables highly efficient breakers with extremely low losses and inherent bidirectional capability—essential for applications like EV charging systems and energy storage, where energy flow can move in either direction. Additionally, these breakers must be extremely fast-acting, especially in direct current (DC) applications. Batteries and solar panels, for example, use DC power, and faults can escalate much faster in DC systems than in alternating current (AC) systems. Our circuit breaker technology is over 100 times faster than conventional electromechanical breakers.
With $15.8 million in cash and no long-term debt, how are you prioritizing investments to ensure a smooth transition from development to revenue ramp starting in 2025?
Our team is small, and it will remain that way. We’re leveraging the significant existing investments in silicon wafer production, semiconductor packaging (which is done under contract), and the industry’s established sales and distribution infrastructure. This allows us to keep our team lean while focusing our efforts and spending on supporting our customers and bringing new products to market.