Release Date: November 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Solid Power Inc (SLDP, Financial) was selected to negotiate a $50 million grant from the US Department of Energy, validating their technology and business model.
- The company is planning to install the first globally known pilot line for continuous manufacturing of sulfide-based solid electrolyte materials, enhancing production capabilities.
- Solid Power Inc (SLDP) has begun development activities in their new Electrolyte Innovation Center, which will enhance R&D capabilities and improve pre-pilot manufacturing processes.
- The company is actively sampling a substantial portion of EV OEMs and Tier 1 battery producers, receiving constructive feedback to iterate and improve their products.
- Solid Power Inc (SLDP) has strong partnerships with BMW and SK On, expanding their cell technology development across three continents.
Negative Points
- Solid Power Inc (SLDP) reported an operating loss of $27.6 million and a net loss of $22.4 million for the third quarter of 2024.
- Operating expenses increased to $32.2 million, driven by higher production and development costs.
- The transition from batch production to continuous manufacturing will require significant investment and time, with Phase 1 expected to complete in 2026.
- The company faces a competitive process for the DOE grant, with only a small percentage of proposals being awarded.
- There is uncertainty regarding future government support for EV initiatives, which could impact Solid Power Inc (SLDP)'s strategic plans.
Q & A Highlights
Q: Can you provide insight into the ASSB grant process and the likelihood of receiving the full amount?
A: John Van Scoter, President and CEO, explained that the process began with a proposal to the DOE under the bipartisan infrastructure legislation. It involved a competitive selection process, with Solid Power being one of the few selected. The grant is highly competitive, with only about 5% of proposals in their category being awarded.
Q: Does the grant represent funding for an existing plan, or is it for a new initiative?
A: John Van Scoter clarified that the grant is a cash offset for an existing plan. The project involves a cost share, with Solid Power contributing $60 million to a total project spend of $110 million over the next three-plus years.
Q: How might the recent U.S. election impact the grant and your customers' EV plans?
A: John Van Scoter stated that they cannot speculate on the new administration's impact. Solid Power remains focused on its strategy to address longer range, lower cost, and safer EVs, believing these are market needs.
Q: What are the financial highlights for Q3 2024?
A: Linda Heller, CFO, reported $4.7 million in revenue, driven by the SK On agreement and government contracts. Operating expenses were $32.2 million, with a net loss of $22.4 million. The company has $348.1 million in total liquidity.
Q: What progress has been made with partners like BMW and SK On?
A: John Van Scoter noted the finalization of the JDA extension with BMW and meeting all milestones with SK On. Solid Power is on track to send electrolyte to Korea to support factory acceptance activities.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
