Solid Power, Inc. Q3 FY2024 earnings call

• Major highlight was being selected to negotiate a $50 million grant from the US Department of Energy for a project on continuous production of sulfide-based solid electrolyte materials for advanced all solid-state batteries. The process was competitive and seen as validation of technology and business model.
• Began development activities in the state-of-the-art electrolyte Innovation Center (EIC) to enhance R&D capabilities and improve pre-pilot electrolyte manufacturing processes.
• Continues to sample multiple customers on a repeat basis with multiple variants, receiving constructive feedback, and is well-positioned to react to customers' requirements.
• Made significant progress on A-2 cell design, with small production runs of A-2 material for internal testing and planning to begin testing A-2 cells in early 2025.
• Collaborations with partners like BMW (finalized JDA extension) and SK On (on track with agreements, expect to send electrolyte to Korea this quarter), and signed a non-binding MoU with a major battery manufacturer to explore electrolyte JDA.

Solid Power delivered $4.7 million in revenue during the third quarter of 2024, primarily driven by continued execution on the SK On agreements and government contracts. Operating expenses were $32.2 million, resulting in 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, and liquidity remained strong with $348.1 million in total liquidity as of September 30, 2024.

• Reiterates the guidance provided on the last call for 2024. The DOE award is a grant offsetting part of the planned $110 million project cost for continuous manufacturing process development. The company is well-positioned to execute its strategy.
• Phase 1 of the DOE project is expected to be completed in 2026, producing 75 metric tons of electrolyte per year, and Phase 2 in 2028, with capability to produce 140 metric tons per year at SP2.

Q: Mike with D.A. Davidson asks about the ASSB grants award process, competitiveness, and likelihood of the grant coming through.

A: John Van Scoter explains the proposal process, competitive nature with 25 total awards and 5% of proposals granted in the specific category, and that the grant is part of the planned plan with cost share.

Q: Mike asks about the impact of the new US administration on the grant and customers' EV pursuits.

A: John says they can't speculate on the new administration but remain focused on their strategy for longer range, lower cost, and safer EVs