Solid Power, Inc. Q4 FY2024 earnings call

• Electrolyte: Increased sampling activity, opened state-of-the-art Electrolyte Innovation Center (EIC), selected by DOE for up to $50 million grant to install continuous manufacturing process for sulfide-based solid electrolyte, cost share under agreement is $60 million but funding timing uncertain due to 2025 executive order.
• Partner Developments: Deepened relationship with SK On with multiple agreements, extended JDAs with BMW and Ford, expanded presence in Korea.
• Financial: Achieved financial objectives for 2024 in terms of revenue recognized and cash flow investment, prioritized projects to preserve cash runway while meeting goals.

In 2024, Solid Power generated revenue of $20.1 million, a $2.7 million or 16% increase compared to 2023's $17.4 million, slightly above the guidance range of $16 million to $20 million. The increase was driven primarily by SK On agreements. Operating expenses were $125.5 million for the year, resulting in an operating loss of $105.3 million and net loss of $96.5 million or $0.54 per share. 2024 capital expenditures totaled $15.9 million. The company ended 2024 with total liquidity of $327.5 million.

• 2025 cash investment, representing cash used in operations and capital expenditures, expected to be in the range of $100 million to $120 million, excluding any benefit from the DOE grant.
• Significant 2025 capital expenditures related to facility engineering and construction of a third pilot electrolyte line using continuous manufacturing process, and improvements to cell development capabilities.
• 2025 revenue expected to be consistent with or higher than 2024, though no specific range provided.

• Uncertainty regarding the timing of funding under the DOE agreement due to the January 2025 executive order that paused disbursements of funds pending further review.
• Tariff issues with sourcing materials globally, as materials are sourced from around the globe and the situation is dynamic, requiring monitoring and potential adjustments.

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

A: There will continue to be back and forth, and larger quantities ordered from existing customers that have been sampling. Also, continuing to develop demand for electrolyte through aggressive sampling and exploring additional partnership opportunities.

Q: About tariffs, are materials sourced mostly within the US or non-tariff countries and any cost issues in 2025?

A: Materials are sourced from around the globe, well diversified with US, Korean, and European suppliers. Monitoring the tariff situation dynamically and will adjust accordingly.