On Wednesday, Ideal Power Inc (NASDAQ:IPWR) announced that it is collaborating with a third global automaker.

This global automaker is working closely and meeting regularly with Ideal Power engineers to discuss using B-TRAN-enabled contactors to replace electromechanical contactors in its electric vehicles (EVs).

"Their initial focus is on EV contactors. Solid-state contactors in EVs are an emerging market, and our technology is potentially enabling this application due to its very low conduction losses and inherent bidirectionality," Ideal Power CEO Dan Brdar said.

Also Read: Ideal Power Reports Q1 Earnings, CEO Expects Solid-State Circuit Breaker Market To Grow Revenue

Contactors serve as cutoff switches for high-voltage applications in EVs. They play a critical role in isolating the battery, inverter, and onboard charger to ensure safety when the vehicle is off or serviced.

Contactors are bidirectional, and there are typically 4 to 6 high-power contactors in every EV.

The high-power EV contactor market is forecasted to grow to over $3.7 billion in 2025, and the company believes that solid-state contactors will potentially displace electromechanical contactors in half or more of this market.

Solid-state contactors provide several benefits over electromechanical contactors. They act much faster, thereby eliminating arcing and improving safety, and are more reliable as they do not include physical contacts that are subject to wear.

In addition, they provide programmable settings for trip and current limits as well as built-in safety diagnostics. Solid-state contactors are also expected to cost less than electromechanical contactors in EV applications.

Price Action: IPWR shares closed lower by 0.58% at $6.87 on Tuesday.

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