Solid Power, Inc. Q3 FY2024 earnings call

• DOE Selection: Selected to negotiate a $50 million grant for a project on continuous production of sulfide-based solid electrolyte materials. Plan to install a first pilot line for continuous manufacturing over 12-18 months, aiming for 75 metric tons of electrolyte per year by 2026 and 140 metric tons per year by 2028.
• Electrolyte Innovation Center (EIC): Began development activities to enhance R&D and pre-pilot manufacturing processes, enabling speed and flexibility in electrolyte development.
• Electrolyte Sampling: Sampling multiple customers with constructive feedback received, well-positioned to react to customer requirements.
• Cell Development: Significant progress on A-2 cell design, with small production runs starting and testing of A-2 cells expected in early 2025.
• Partnerships: Finalized JDA extension with BMW, on track with SK On agreements, signed MoU with a major battery manufacturer for electrolyte JDA, and collaborations with Korean research institutes.

Solid Power delivered $4.7 million in revenue during the third quarter of 2024, primarily driven by SK On agreements and government contracts. Operating expenses were $32.2 million, leading to an operating loss of $27.6 million and a net loss of $22.4 million or $0.13 per share. Capital expenditures totaled $2.7 million during the quarter, with investments in electrolyte production capabilities including the build-out of the EIC. There are no specific product segments detailed beyond general operations related to electrolytes and cells.

• Reiterated 2024 guidance with $14.9 million in progress payments from SK On already collected.
• DOE grant is a $50 million potential offset to a $110 million project, with cost share requiring $60 million from Solid Power over a multiyear period.
• Plan to install first pilot line for continuous manufacturing over 12-18 months, with Phase 1 completion expected in 2026 and full project completion in 2028.

• Uncertainty regarding the new US administration's stance on electric vehicles and related initiatives, which could impact funding and customer pursuit of EV platforms.

Q: About the DOE grant process, competitiveness, and likelihood of the grant coming through.

A: Submitted proposal in March, competitive process with 5% of proposals in their category granted. Grant is part of existing plan, cost share required with $60 million from Solid Power over multiyear period.

Q: Impact of new US administration on EVs and the grant.

A: Can't speculate, focus on strategy for longer range, lower cost, safer EVs; believe strategy will be a winner in the long run