Solid Power, Inc. Q1 FY2025 earnings call

• Executing on the electrolyte development roadmap, with plans to install a continuous manufacturing pilot line for sulfide electrolyte production at SP2, expecting to expand capacity to 75 metric tons per year, received $1.5 million in DOE reimbursements, and on track for 2026 commissioning.
• Continuing agreements with SK On, close to completing factory acceptance testing for the SK On line, expecting site acceptance testing later in the year.
• Focusing on driving electrolyte innovation through customer feedback and using the Electrolyte Innovation Center to develop and test production processes at a smaller scale before transferring to pilot lines.
• Ramping electrolyte sampling and identifying long-term customers, with continued demand from customers for multiple generations of electrolyte.

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

• 2025 objectives include executing electrolyte development, working with SK On, driving innovation, and ramping sampling.
• Substantial majority of 2025 revenue related to collaborative arrangements, primarily SK On and government contracts.
• Timing for significant electrolyte revenue potentially as early as 2027-2028, bulk around 2030 and beyond, with increasing sampling but not substantial revenue yet due to cell development work.

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? I guess, not firm guidance, but some sort of timing around revenue from customers for the electrolytes. And how should we think about revenue per vehicle?

A: '25 revenue is dominated by collaborative arrangements, mostly SK On and government contracts. Sampling is at a lower level. Customers are in early cell development stages, sampling is increasing but not large quantities 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, not much more to disclose at this point