Ideal Power Inc (NASDAQ:IPWR, FRA:5ILA) is moving steadily toward commercialization of its B-TRAN-enabled products, following a series of strategic partnerships and agreements. Last month, the company announced a multi-year cooperation with Lazzen to design and sell circuit protection products, including solid-state circuit breakers, battery disconnect units, and EV contactors, with Lazzen’s first B-TRAN-enabled breaker expected to target AI data center customers. The company also signed a letter of intent with an Asian power module manufacturer to produce and distribute B-TRAN-based power modules globally, while engagements with Stellantis on potential EV contactor programs are advancing, with key deliverables expected by mid-2026.
With a growing patent portfolio now comprising 100 issued B-TRAN patents worldwide, a clean capital structure and no long-term debt, Ideal Power is financially well-positioned to fund its growth initiatives after a $12.6 million capital raise earlier this year. In this interview, CEO David Somo discusses his first quarter on the job, the company’s path to commercialization, and the strategies driving B-TRAN adoption across key verticals such as data centers, battery energy storage, and electric vehicles.
Proactive: Three months into the role, having completed your first quarter successfully, what have been some of the highlights for you?
David Somo: I think over the first three months it was really about getting my arms around the state of the business here at Ideal Power—working across the organization and understanding where we are with some of the key initiatives we’re driving inside the company. That was an important part of stepping into the role: understanding where we stand today so we can look strategically at where we’re going moving forward and set that direction. I think those priorities are now set and in place.
The second element during my first quarter in the role was getting out and working directly with customers. I’ve had a long career running worldwide sales and marketing organizations, with a lot of customer interaction over that time. Over the course of my career, I’ve accumulated more than five million miles of travel. Being able to sit down with customers who are evaluating B-TRAN, as well as those who are lead customers developing products around B-TRAN, gave me the opportunity to understand how they look at the product and what they see as its advantages.
I was also able to see the excitement they have around the product, which was certainly a good validation of the technology we have and the products we’re bringing to market. That engagement helps continue to move us toward commercialization of the products.
With two new customer agreements and an ongoing engagement with Stellantis, what is your timeline for converting these development programs into revenue-generating production orders?
The process we’re going through with customers who are leading the development of B-TRAN-based products is focused on supporting them through their product development. We work with them as they incorporate B-TRAN into their initial products and support them through the qualification process so they can assemble the necessary packages for items like solid-state circuit breakers that are needed to introduce those products to their end customers. After that, we help them begin the process of bringing their products to market through their customer base.
Our current expectation is that lead customers could potentially complete this process and begin selling their products later this year, around the fourth quarter. That would give us the opportunity to secure our initial sales orders later this year, with a ramp-up planned for 2027.
You highlighted expanding B-TRAN adoption across EV, data center, and energy storage markets. Are there specific verticals or geographies you see as your primary growth drivers in 2026?
The fastest opportunities for revenue for the company, and for products incorporating B-TRAN, are specifically around solid-state circuit breakers in data centers and battery energy storage systems. Another potential application is static transfer switches, which B-TRAN also excels in and is used in data centers. This application takes a bit longer to develop but could be in the market by 2027. I think these are the specific verticals and applications where B-TRAN can lead.
As B-TRAN-enabled products move closer to market, how well is the company positioned to ramp up production, manage supply chain challenges, and handle regulatory approvals?
We have two foundry partners that we work with to ensure robust supply capabilities to support our customer ramps. We continue to explore ways to expand that over time. As we bring more customers into volume production, we’ll evaluate our ability to scale further to stay ahead of demand—certainly a welcome challenge, as it reflects our success with customers.
In addition, at the beginning of the year, I brought in a Chief Operating Officer, Clay Beltran, who has 30 years of experience in the semiconductor industry running worldwide manufacturing, operations, supply chain, and quality programs and systems. He is leading the effort to build out and strengthen our operational capabilities for the company.
Given your cash position and recent $12.6 million financing, what are the key areas where you plan to allocate capital to accelerate commercialization and scale operations this year?
The capital raise we completed earlier this quarter gives us the ability to make key additions to our sales organization to drive B-TRAN commercialization. This includes adding another technical sales resource in the Asia region, bringing on a European sales leader, and working with our distributors and sales reps globally to expand B-TRAN adoption across a wide range of customers. The funds will support these initiatives as well as continue to fund ongoing operations for the business.