This will only be once the current macroeconomic backdrop, currently defined by rising Fed fund rates and high inflation, has dramatically eased. My intention is to buy back into the solid-state dream through either Solid Power or QuantumScape sometime in the next year. I owned Solid State briefly for a few months immediately after it went public but sold out of the position to meet some portfolio margin requirements. Replacing the liquid electrolyte of a battery with a solid electrolyte will help form a new generation of batteries that are significantly more dense, non-flammable, and faster charging than competing lithium-ion battery chemistries. Solid-state batteries have received a great deal of hype because of just how revolutionary they would be. Both stocks have had similar drawdowns this year as a broad 'risk off' market sentiment saw investors flee to safety from more highly speculative and cash-burning companies. San Jose, California-based QuantumScape currently has a $2.3 billion market cap, has around 574 employees, and went public more than a year earlier by a blank check firm in November 2020. The Louisville, Colorado-based company went public via a blank check firm back in December 2021. Solid Power is the smaller of the two, with a market cap of $400 million and around 159 employees. What are the main differences between both and might an investor want to buy one over another?
There are other companies developing solid-state batteries like Mullen ( MULN ), Toyota ( TM ), and Dragonfly ( DFLI ) but this comes with other business operations that an investor might not want exposure to. Investors looking to gain exposure to the highly speculative but fundamentally revolutionary race to develop solid-state batteries for EVs really have two pureplay options QuantumScape ( NYSE: QS) and Solid Power ( NASDAQ: SLDP).
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