Earning Date, Transcript Summary & Report

Business Progress in 2024: 2024 was an important year for Solid Power, as we made progress across the business.

Sampling Activity Expansion: We increased our sampling activity, including to new potential customers, and opened our state-of-the-art Electrolyte Innovation Center or EIC.

Korean Market Expansion: We significantly expanded our relationship with long-time partner SK On and grew our Korean presence by adding business development and program management capabilities.

Collaboration on Cell Development: We continued to collaborate with BMW and Ford on cell development and extended our JDAs with both partners.

Solid Electrolyte Technology: Our core technology is a sulfide-based, solid electrolyte material, which replaces the liquid or gel electrolyte used in traditional lithium-ion battery cells.

Electrolyte Technology Advancements: We believe our electrolyte technology has the potential to enable a step change improvement in battery performance, beyond what is currently available in conventional lithium-ion battery cells, including improved energy density, battery life and safety performance.

World-Class Scientific Team: We have built a world-class team of electrolyte and cell scientists and engineers.

Pilot Manufacturing Facilities: We operate two pilot manufacturing facilities in Colorado, one focused on electrolyte and the other on cell.

Electrolyte Sampling Expansion: In 2024, we increased our electrolyte sampling program, shipping to new and repeat potential customers, with the majority of volume going to Asian Tier 1 cell manufacturers and automotive OEMs.

Grant for Manufacturing Innovation: In September 2024, we were selected by the U.S. Department of Energy for a grant of up to $50 million to install the first globally-known continuous manufacturing process of sulfide-based solid electrolyte materials.

Strategic Partnership Expansion: We deepened our relationship with SK On, one of the largest battery manufacturers in Korea and top 10 in the world, by signing three agreements.

Joint Development Agreements Extended: In 2024, we extended our joint development agreements with BMW and Ford.

Korea Market Expansion: We expanded our presence in Korea, establishing a home base for driving further engagement across the peninsula with potential customers, vendors, government-funded research institutes and others.

Revenue Increase Overview: In 2024, we generated revenue of $20.1 million, a $2.7 million or 16% increase compared to our 2023 revenue of $17.4 million, and slightly above our guidance range of $16 million to $20 million.

Revenue Increase from Agreements: This increase was driven primarily by the SK On agreements with strong execution on the line installation agreement and completion of key steps in the transfer of our technology accounting for $11.8 million of our 2024 revenue.

Cash Preservation Strategy: During the year, we ensured that we were prioritizing projects and outlays to preserve cash runway while still meeting our goals and objectives.

Total Liquidity Achievement: As a result of our lower spend, we ended the year with total liquidity of $327.5 million.

Projected Cash Investment: For 2025, we expect cash investment to be in the range of $100 million to $120 million, excluding any benefit from the DOE grant.

Capital Expenditures Forecast: We anticipate that our most significant capital expenditures in 2025 will relate to facility engineering and construction of a third pilot electrolyte line using a continuous manufacturing process, as well as improvements to cell development capabilities.

Earnings Miss Reported: Solid Power, Inc. missed earnings expectations with a reported EPS of $-0.16, compared to the expected $-0.13.

Operating Expenses Increase: Operating expenses increased to $125.5 million, up $17.5 million from 2023, primarily due to higher R&D costs and scaling operations.

Operating and Net Losses: The operating loss was $105.3 million, and the net loss was $96.5 million, translating to a loss of $0.54 per share.

Cash Investment Shortfall: Total cash investment for the year was $79.8 million, which was below the guidance range of $100 million to $120 million, indicating tighter cash management than anticipated.

Funding Uncertainty Impact: The company faces uncertainty regarding the timing of funding from the DOE grant due to a January 2025 executive order pausing disbursements, which could impact future operations.

Cautious Revenue Outlook: Despite a revenue increase of 16% to $20.1 million, the company is not providing a revenue range for 2025, reflecting caution in their outlook.

Manufacturing Strategy Shift: The company plans to scale back on significant cell manufacturing as part of the automotive qualification process, indicating a shift in strategy that may affect growth prospects.