Solid Power, Inc. Q1 FY2025 earnings call

• Executing on electrolyte development roadmap: Planning to install a continuous manufacturing pilot line for sulfide electrolyte production at SP2, expecting 75 metric tons per year capacity. Received $1.5 million in DOE reimbursements, on track for 2026 commissioning.
• Executing agreements with SK On: Close to completing factory acceptance testing for SK On's solid-state pilot line, expecting site acceptance testing later in 2025.
• Driving electrolyte innovation: Receiving constructive feedback from customers, using the Electrolyte Innovation Center (EIC) to develop and test production processes at a smaller scale before transferring to pilot lines.
• Ramping electrolyte sampling: Continuing to see demand for multiple generations of electrolyte from customers, with increased sampling and customer engagement.

In the first quarter of 2025, Solid Power generated revenue of $6 million, compared to $5.9 million in the first quarter of 2024. Revenue was primarily driven by the SK On agreement and milestones within the line installation agreement. Operating expenses for the quarter were $30 million, a decrease of $1.7 million from the first quarter of 2024, due to lower direct labor costs from collaborative arrangements. The operating loss was $24 million, with a net loss of $15 million or $0.08 per share. Capital expenditures totaled $2.4 million, primarily for the construction of the continuous electrolyte production pilot line.

• 2025 is off to a good start with progress on electrolyte development, SK On line, innovation, and sampling.
• Revenue in 2025 is dominated by collaborative arrangements like with SK On and government contracts, with sampling at a lower level but increasing.
• Anticipates significant electrolyte revenue potentially as early as 2027-2028, with bulk of customers around 2030 and beyond.

Q: Could you just remind us sort of how to think about '25 revenue and then how should we think about a step up or revenue from customers?

A: '25 revenue is dominated by collaborative arrangements, primarily SK On and government contracts. Sampling is at a lower level but increasing. Traction is determined by repeat sampling and increased size sampling.

Q: On that, I guess, I should have asked the question a little better. But if we think about repeat sampling and moving towards firmer orders and things like that, like, I guess, what's the right way to think about the trajectory of revenues potentially beyond '25.

A: Customers are in early stages of cell development, so sampling is increasing but not substantial yet. Significant electrolyte revenue potentially as early as 2027-2028, bulk around 2030 and beyond.

Q: Can we drill down a little bit on the DOE loan?

A: It is not a loan, it is a grant. Received $1.5 million funds during Q1 under that grant.