Solid Power (SLDP) Q3 2024 earnings summary

Executive summary

• Selected by the US Department of Energy to negotiate a $50 million grant for continuous production of sulfide-based solid electrolyte materials, validating technology and business model.

• Progressed on installing a pilot line for continuous electrolyte manufacturing, aiming for 75 metric tons/year by 2026 and 140 metric tons/year by 2028.

• Launched development activities in the Electrolyte Innovation Center to enhance R&D and pre-pilot manufacturing.

• Expanded global reach with cell technology development in collaboration with BMW (Europe) and SK On (Asia), and deepened relationships in Korea.

• Continued electrolyte sampling to customers, receiving constructive feedback for product improvements.

Financial highlights

• Q3 2024 revenue was $4.7 million, mainly from SK On agreements and government contracts, down 27% year-over-year; nine-month revenue rose 4% to $15.7 million.

• Operating expenses reached $32.2 million, with an operating loss of $27.6 million and net loss of $22.4 million ($0.13 per share); nine-month net loss was $65.9 million.

• Capital expenditures were $2.7 million in Q3 and $11.2 million for the nine months, focused on electrolyte production and EIC build-out.

• Total liquidity stood at $348.1 million as of September 30, 2024, including $38.0 million in cash and $94.0 million in marketable securities.

• Repurchased 5 million shares for $8.36 million under the $50 million stock repurchase program.

Outlook and guidance

• 2024 revenue expected between $16 million and $20 million, with growth driven by SK On milestones and BMW JDA execution.

• Total cash investment for 2024 projected at $100 million to $120 million, with $60–70 million for operations and $40–50 million for capital expenditures.

• DOE grant is a cost-share program, offsetting planned spending rather than adding incremental investment.

• Management believes cash on hand is sufficient for at least the next 12 months and to support ongoing capital expenditures and share repurchases.

• Plans to showcase technology and strategy at an analyst and investor event in the first half of 2025.