Jim Cramer is bullish on soon-to-be-public battery maker Solid Power as a “zero hype” electric vehicle play.
The solid-state battery manufacturer counts Ford and BMW among its investors and makes technology that Cramer said could change the game for electric vehicle makers.
“We know the biggest bottleneck for electric vehicles is the battery,” Cramer said. “Fortunately, there’s an alternative in the works — solid-state battery technology — that’s lighter, cheaper, longer-lasting and much less likely to catch on fire.”
Solid Power is set to go public via a merger with special purpose acquisition company Decarbonization Plus Acquisition Corp III.
“Now there’s a solid-state battery play with zero hype,” Cramer said.
Solid Power’s co-founder and CEO Doug Campbell appeared on CNBC’s “Mad Money” Friday to share how solid-state batteries could impact the electric vehicle industry.
“In a solid-state battery we have replaced that volatile and flammable liquid and gel polymer electrolyte with a very stable, solid ion conducting material,” Campbell said. “Our cells may still fail, but they do so in a very benign. non-catastrophic manner… In other words, instead of a thermal runaway on your hands, you simply have a dead brick.”
The improved technology could cut expenditures for automakers, Campbell explained.
“We believe, and our [original equipment manufacturer] partners believe, that the design of future EV battery packs incorporating solid-state batteries will be substantially simpler,” Campbell said. “So that would drive down the cost.”
Cramer noted Decarbonization Plus Acquisition Corp III’s stock closed at the $10 level Friday, potentially offering an affordable entryway into an investment opportunity.
“You heard Ford’s endorsement. You do the homework. I think sounds like a very interesting situation,” Cramer told viewers.