Solid Power (SLDP) 7 Nov 24 2024 Q3 Earnings call transcript

In Solid Power's third quarter earnings call, executives shared exciting updates on their progress towards advanced all-solid-state battery (ASSB) technology, backed by a $50 million grant from the U.S. Department of Energy (DOE). The call, led by CEO John Van Scoter and CFO Linda Heller, offered insights into Solid Power's strategic plans, financial health, and market positioning.

Strategic Advancements and Grant Validation

The call began with John Van Scoter discussing the significant milestone of being selected for the DOE grant, highlighting the competitive nature of the selection process and the company's focus on addressing U.S. supply chain challenges for clean energy. The grant, part of a broader strategy to develop ASSBs, is expected to bolster Solid Power's efforts in manufacturing and research, with an emphasis on continuous production of sulfide-based solid electrolyte materials.

Financial Health and Market Outlook

Linda Heller provided a detailed financial update, reporting a $4.7 million revenue in the third quarter, primarily driven by SK On agreements and government contracts. Despite operating expenses of $32.2 million, Solid Power maintains a strong liquidity position, with total liquidity standing at $348.1 million as of September 30, 2024.

Technological Progress and Partnerships

Van Scoter also discussed the company's progress on the A-2 cell design, which aims to address performance gaps in the A-1 design. He highlighted the beginning of small production runs for internal testing and the upcoming testing of A-2 cells in early 2025. Additionally, Solid Power's partnerships with BMW and SK On in Europe and Asia were highlighted, with plans for cell technology development on three continents.

Investor Questions and Responses

During the Q&A session, analyst Michael Shlisky asked about the grant award process, its impact on Solid Power's strategy, and the potential implications of the U.S. election outcome. Van Scoter provided reassuring responses, emphasizing the company's focus on long-term strategic goals and the belief in the market's demand for longer-range, lower-cost, and safer electric vehicles.

Looking Ahead

The call concluded with Van Scoter expressing optimism about Solid Power's future, with plans for an analyst and investor event in the first half of 2025. The company remains focused on advancing battery technology and executing its strategy, aiming to address the current challenges faced by the electric vehicle industry.

Overall, Solid Power's third quarter earnings call presented a positive outlook for the company, highlighting strategic advancements, financial health, and partnerships that position Solid Power as a key player in the battery technology sector. The $50 million grant from the DOE is a significant step forward, underscoring the potential for Solid Power's technology to contribute to the broader goal of improving battery performance and advancing the electric vehicle market.