Solid Power, Inc. Q4 FY2024 earnings call

• In 2024, increased electrolyte sampling activity, opened the Electrolyte Innovation Center (EIC), and deepened relationships with SK On, BMW, and Ford.
• Selected by the U.S. Department of Energy for a grant up to $50 million to install a continuous manufacturing process for sulfide-based solid electrolyte materials, with a cost share of $60 million (uncertainty around funding timing due to executive order).
• Deepened partnership with SK On via multiple agreements, supporting their solid state cell development and preparing to install a pilot line.
• Extended joint development agreements with BMW and Ford, working on cell design improvements and production enhancements, though no consolidated A-2 build yet.
• Expanded presence in Korea to engage with potential customers and advance battery technology development.

In 2024, Solid Power generated revenue of $20.1 million, a $2.7 million (16%) increase from 2023's $17.4 million, slightly above the guidance range of $16 million to $20 million. The increase was primarily driven by SK On agreements, contributing $11.8 million to 2024 revenue. Operating expenses for 2024 were $125.5 million, an increase of $17.5 million from 2023. Operating loss was $105.3 million and net loss was $96.5 million or $0.54 per share. 2024 capital expenditures totaled $15.9 million, focused on electrolyte development and production capabilities.

• 2025 cash investment (cash used in operations and capital expenditures) expected to be in the range of $100 million to $120 million (excluding DOE grant benefit).
• Most significant capital expenditures in 2025 related to facility engineering and construction of a third pilot electrolyte line using continuous manufacturing, and improvements to cell development capabilities.
• 2025 revenue expected to be consistent with or higher than 2024, but no specific range provided. Focus on balancing investments for electrolyte development, managing spend, and maintaining financial discipline.

• Uncertainty regarding the timing of DOE grant funding due to the January 2025 executive order pausing disbursements pending further review.
• Tariff dynamics affecting sourcing of materials from around the globe, with ongoing monitoring and adjustments needed.

Q: What should we be listening for in 2025 regarding Solid Power's progress?

A: Expect larger quantities ordered from existing customers we've been sampling in 2024, as well as continued back and forth with partners. Also, industry momentum from announcements like Mercedes' range claims is welcomed as it supports the nascent solid state battery industry.

Q: Are the materials in Solid Power's formula sourced mostly within the US or non-tariff countries, and any cost issues with tariffs in 2025?

A: Materials are sourced from around the globe, with diversification including US, Korean, and European suppliers. Still assessing tariff potentials and will adjust accordingly as the situation evolves, with the company being well-diversified to continue business moving forward.