Ideal Power Partners with Kaimei Electronic for Asian Market Expansion

Ideal Power and Kaimei Electronic Corp. Join Forces

In a significant move that promises to reshape the landscape of power electronics in Asia, Ideal Power Inc. has announced a distribution agreement with Kaimei Electronic Corp. This collaboration aims to promote Ideal Power's innovative B-TRAN® technology across the Asian market, leveraging Kaimei's extensive customer base and distribution networks.

Overview of the Partnership

Founded in 1978, Kaimei has established itself as a leading manufacturer of electrolytic capacitors, resistors, and motor fans, successfully selling its products in 60 countries worldwide. Under the new agreement, Kaimei will serve as the first third-party distributor for Ideal Power's B-TRAN® semiconductor products. This partnership is set to capitalize on the shared target markets of both companies, including industrial, automotive, renewable energy, energy storage, UPS systems, and electric vehicle (EV) charging sectors.

Dan Brdar, President and CEO of Ideal Power, expressed enthusiasm about this partnership, noting that Kaimei already caters to many customers within the industrial, utility, and automotive markets where B-TRAN® is expected to thrive. According to Brdar, Asia represents the largest market for power electronics, and companies in the region are often quicker to adopt new technologies than their counterparts in Europe and the U.S.

Impact on Ideal Power's Business Model

This distribution agreement aligns perfectly with Ideal Power’s asset-light business strategy. The company aims to harness the considerable investments already made in silicon processing and packaging, allowing it to free up working capital and focus intensively on furthering B-TRAN® technology improvements. This business model is designed to maximize efficiency while ensuring that the company continues to innovate and commercialize its cutting-edge products.

The B-TRAN® technology itself is a groundbreaking bidirectional semiconductor power switch that offers significant advantages over traditional power semiconductors. By reducing conduction and switching losses while simplifying thermal management, B-TRAN® has the potential to lower operational costs significantly in AC power switching and control applications. As part of the agreement, Kaimei will play a pivotal role in driving revenue growth by facilitating the adoption of this game-changing technology in the Asian market.

About Ideal Power Inc.

Ideal Power Inc. (NASDAQ: IPWR) is at the forefront of developing highly efficient energy control solutions tailored for industries including electric vehicles, renewable energy, and data centers. Their innovative technology, B-TRAN®, stands out due to its double-sided bidirectional capabilities, which dramatically enhance performance metrics such as energy efficiency and cost-effectiveness.

About Kaimei Electronic Corp.

With a solid operational history and extensive portfolio, Kaimei Electronic Corp. provides high-value electronic components. Their products include a variety of capacitors and resistors designed to meet diverse industry needs. The stability and experience of Kaimei, combined with their commitment to innovation, make this partnership a promising venture for both parties.

Conclusion

The collaboration between Ideal Power and Kaimei Electronic Corp. signifies a strategic advancement not only for each company but for the entire power electronics sector in Asia. By leveraging their complementary strengths, they aim to capitalize on emerging opportunities and drive the adoption of groundbreaking B-TRAN® technology in a rapidly evolving market landscape. As both companies look forward to securing orders and achieving design wins, the future appears bright for this innovative partnership.