Ideal Power Inc (NASDAQ:IPWR) (NASDAQ: IPWR) is gaining momentum in the electric vehicle space following a new order from a global Tier 1 automotive supplier for its B-TRAN semiconductor devices and SymCool power modules. The supplier, which serves several of the world’s top 10 automakers, will evaluate Ideal Power’s technology for use in a next-generation solid-state EV contactor design—a critical safety component in electric vehicles.
In this Q&A, CEO Dan Brdar discusses the growing traction B-TRAN is seeing across both automotive and industrial markets, the significance of recent customer engagements, and how Ideal Power is scaling to meet anticipated demand. With an active program underway with Stellantis and engagement with multiple Tier 1s, Brdar outlines how the company is positioning itself for broader adoption of its high-efficiency power semiconductor solutions.
Can you provide more detail on the evaluation process your Tier 1 customer will undertake for the B-TRAN devices and what milestones you're targeting with them?
Part of what we’ve been focused on over the last year or year and a half is educating our target customer base. Our technology isn’t something their engineers would have learned about in school, so we have to teach them about a completely new device topology.
That’s been a big part of our work with Tier 1suppliers and auto OEMs—taking them through that education process. And as we've done this a few times now, we've learned how to speak their language. What we’re finding is that the education cycle is getting shorter, because we’re better able to communicate in terms they use and understand.
It also helps to build credibility through association. For example, when we say we’re working with Stellantis, it gets the attention of other companies. A Tier 1 supplier to Stellantis might say, ‘Wait a minute, we need to understand this technology too—maybe it’s something we should be working on with Ideal Power. And what other OEMs could this apply to?’ So it’s been an interesting process, and we’re seeing real momentum build as we gain traction with global customers.
As you say, it’s become a faster process of educating customers. Does that speak to the kind of momentum B-TRAN is building in the market?
It does. Just this week alone, we announced not only the order today with our fifth Tier 1 supplier, but also that we’ve started working with a fourth Tier 1 supplier as well. So we’re really starting to see a nice increase in momentum.
I think you’ll see some interesting developments with Stellantis in the not-too-distant future. And on the industrial side, we’re also making progress. I expect we’ll be closing in on some additional design wins with customers working on solid-state circuit breakers for industrial and utility applications that plan to use our technology.
How does this engagement compare to your other ongoing projects with Stellantis and the two other global automakers you’re working with?
The Tier 1s are kind of working independently for now, because they want to be able to bring a solution to multiple automakers. With Stellantis, it's really a funded development program—they have a technical team in-house with a pretty specific idea of what they want to achieve. They work closely with a technology provider like us to make that a reality. At the end of the day, they’ll hand that over to the Tier 1s and say, 'Here’s what we’ve come up with—this is what we’d like you to supply us.' So we're kind of approaching it from both sides of the equation.
You mentioned quoting for millions of SymCool power modules—does this suggest a potential long-term supply agreement, and what would be the timeline for such a deal?
Well, I think if we're successful with them, it obviously could lead to more. Before they're going to commit significant time, money, and resources to developing something like an EV contactor, they want to know: is this going to be a competitive solution? Or are we going to spend months and a lot of money only to realize it’s just not going to be cost effective? So it's part of their product planning process—they need to understand our capacity, what our volume quoting looks like, and whether it aligns with the solutions they want to bring to the automakers more broadly.
What specific challenges do you face in replacing legacy electromechanical contactors with B-TRAN-based solid-state alternatives, particularly in the highly regulated automotive sector?
One of the key things is getting our technology through the automotive qualification process. There’s a set of standards that semiconductors have to meet, which involves tens of thousands of power cycles and extensive exposure to heat and humidity cycles. We’re going through that process right now, and it’s going very well. But that’s a critical requirement for any power semiconductor going into an automobile—they simply can’t afford failures. When you’re producing millions of vehicles, even a small failure rate can be catastrophic, especially for newer automakers.
Given the growing interest from Tier 1 suppliers, how is Ideal Power scaling its production and R&D capabilities to meet potential demand?
From a manufacturing standpoint, we already have multiple wafer fabrication partners that can provide all the volume we need for the next couple of years. We've spent a lot of time figuring out how to make this unique double-sided device in a conventional silicon wafer fab. If demand increases and we need to bring on a third partner, we've already done it a couple of times, so it’s a more straightforward process—and we would do that. I think we're well positioned to start supplying customers.
But when you think about the automakers and the huge volumes they drive, I wouldn’t be surprised if one of them eventually came to us and said, ‘We don’t want a single source of supply—we need a second.’ And if we had the orders and backlog to support it, we’d be willing to license our technology to another provider. That way we could stay focused on technology development.
From a development standpoint, what’s great is that we’re not constrained in any of these relationships. For example, the work we do with Stellantis doesn’t prevent us from taking what we’ve learned and applying it with the Tier 1s. They might have a different approach or idea, but we get a lot of leverage from all these engagements. Everyone is pushing for lower-cost, more efficient solutions as quickly as possible, and they don’t want to be solely responsible for providing the volume or validation. That allows our small but very capable technical team to have an outsized impact in supporting these customers.
What’s next for the company?
You’ll likely see some updates on our work with Stellantis that we hope to announce soon. We also expect to share some design win news related to the industrial customers we’re working with on solid-state circuit breakers. In addition, there should be updates on our automotive qualification process, as well as on efforts to increase the power rating of our products to enhance performance. So, there are several key developments in the pipeline that should make for a strong news flow between now and the end of the year.