Solid Power, Inc. Q2 FY2024 earnings call

• Key 2024 goals: Expand electrolyte capabilities/market reach, advance A-2 sample cell designs, execute partnerships effectively, strengthen presence in Korea.
• Increased electrolyte sample shipments to potential customers with repeat shipments to OEMs and encouraging feedback.
• Focused on advancements in A-2 cell design for higher performance and safety.
• Partnerships: Deepened relationship with SK On, completed first milestone under R&D License Agreement, making progress on Line Installation Agreement; collaboration with Ford on various projects; extended JDA with BMW until Q3, with focus on improving cell design and advancing performance.
• Efforts in Korea: Expanded team in Korea for business development, ramping electrolyte sampling activities with major players.

In the second quarter of 2024, Solid Power delivered $5.1 million in revenue. Operating expenses were $32 million, resulting in an operating loss of $26.9 million and a net loss of $22.3 million or $0.13 per share. Capital expenditures totaled $4.4 million, primarily for electrolyte production capabilities. As of June 30, 2024, total liquidity was $358.8 million, accounts receivable were $12.3 million, deferred revenue was $10.1 million, and total current liabilities were $22.9 million.

• Reduced 2024 revenue guidance to $16 million to $20 million due to: Not all revenue from SK On agreements recognized in 2024 (portion to be recognized in 2025) and slower-than-forecasted uptake in electrolyte development.
• Fiscal year 2024 cash used in operations expected in range of $60 million to $70 million, capital expenditures in range of $40 million to $50 million, total 2024 cash investment expected in range of $100 million to $120 million.
• Revenue revision doesn't impact long-range cash runway for commercialization of technology; remains capital-light in solid-state battery space.

Q: On the revenue guidance reduction, the slower uptick in electrolyte development – is it due to OEMs' feelings about EVs or nascent market?

A: John Van Scoter credits it to the very nascent state of the ASSB market, where early players not taking measurable quantities in the second half as initially thought.

Q: About BMW JDA pause, is it normal and just due to focus on A-2 cell?

A: John Van Scoter says it's due to A-2 cell being eminent, so mutual decision to pause current cell deliveries and refocus on A-2 cell performance improvement.

Q: Has the OEM pipeline gotten larger or smaller?

A: John Van Scoter states the pipeline is continuing to grow, with over 10 samples and multiple samplings to existing potential customers, including 5x or 6x samplings from some