SLDP - Earnings call transcript Q1 2024

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Operator

Greetings, and welcome to the Solid Power, Inc.

First Quarter 2024 Financial Results and Business Update Call. Please note that this conference is being recorded. I will now turn the conference over to your host, Jennifer Almquist, Investor Relations for Solid Power. Thank you.

begin. may You

Jennifer Almquist

Chief Welcome, the today. operator. Power's thank for Power's release Scoter; you and copy www.solidpowerbattery.com. Paprzycki. Thank today's website, Relations of joined everyone, section on us earnings and Van John I'm Executive available Solid Officer, today's joining Kevin Chief A on you, is Officer, and Financial Investor call President Solid by of

U.S. as about securities expectations our to These discussion parts today to defined and of remind by on forward-looking include and and the like are the I'd statements timing as based of future statements laws. current forward-looking available based future you will management's information events. currently outcome are that on events assumptions

disclaims future any statements any duty Except or required events as otherwise to to forward-looking Power by reflect Solid applicable circumstances. update law,

of For risks found and in Solid company's actual me at the filings that results those could Van website on forward-looking with differ uncertainties turn Power's statements, let cause With and expressed can Scoter. materially www.solidpowerbattery.com. to be please Commission, see John which over from recent today's a to it that, the discussion most Exchange the Securities

John Van Scoter

and begin Thank I'll update we'll up afternoon, for Good the review. everyone, call. for call Q&A. financial off I'll the the for you Then hand open you, our today's progress. today Jen. joining brief a that, call with thank on After to Kevin

continued priorities presence of on Sample the goals. designs, in our we execution off XXXX available our outlined X They spoke, partners advanced capabilities last during all start these a our our good is XXXX and execute first market, cell to we quarter. A-X with to are and strong When Korea. electrolyte for to strengthen expand

executing higher cells new respect customers. are dates. made to by to cell deliver we enable We on potential to with our shipments performing design electrolyte, our and a believe program will on path us A-X With progress sampling ongoing that expanded we target

to R&D, continue and execute Korea, basis most for for the region. established agreements, notably SK early offices partners, transfer On, through line technology further our installation engagement strong the our in team providing we We and our in execution on ongoing and

each with Looking goals, a of electrolyte. these at starting closely more little

see We electrolyte to growing interest continue our powder. in

During quarter, shipments partners. we existing made the our to

also to We repeat a shipments customer OEM our after feedback customer shipped made we electrolyte to potential positive to excited potential new a are with. and work receiving

shipped lab, our development complete reduce even also our to of Our future to this electrolyte customers which XX will R&D powder joint be The the cost of We've existing electrolyte performing electrolyte. goal higher our are new relationships. electrolyte targeting we been generations lab in of production, develop and optimize invest continuous to has now midyear. to outside potential of continued sometime

continue We great this remain to proprietary to our expand opportunity for in our our market continuing industry long-term a electrolyte and and for our we committed represents and believe available capabilities area. to shareholders,

development. to Turning cell

this year. of our A-X of by Our design team refine our a cell continues delivering the A-X cells with to partners goal end to

and believe are our improve We also solid-state A-X energy towards these cells Our performance, technology. designed incremental including an to cell represent improvements commercial step power.

plans as builds. chemistry for and processes thoroughly in design the our in evaluating into our handful and team well minor cell into We've performance, year. analysis production. has of in been With detailed able to working performing reactions of testing materials The runaway have used our A-X manufacturing also address cells' factored better that this cells our team internal improvements as cell identify to process been earlier our hard respect to the thermal went we changes improving capabilities, and that A-X is our

demonstrate energized solid-state to driving the by development our commitment my and technology batteries. challenging, their proud team's for hurdles work realistic, I'm team is solutions. express want and potential and appreciation is opportunity to of overcome thoughtful our Battery the of to

to begun SK partners. kick for in Turning signing in our On April, the R&D SK have collaboration under license. off we Since here hosted On transfer we In X earnest. weeks the with Colorado our process in January, expanded to tech agreement

valuable conducted During a for This our and and those we set production sides collaboration. X with weeks, cell we beneficial solid other for workshops, hands-on future processes. both learning training respect as to spent was foundation time

on track the complete come. to well we're is All SK say efforts on installation team to line work Asia the EV that equipment our technology On cell now first On's We I'm development to order, in and new collaboration line Korea also pleased tech design on transfer line's the line efforts of the the will U.S., installation. to and on SK Both the solid-state half major and the sent on us years in to a line. nearing increase across leverage begin Europe the ultimately XXXX. freeze keeping

our under with continue BMW and our collaboration We joint also Ford agreements. close development both

and We year. continue partners closely relationships our the these to value OEM with forward work to to continuing throughout look

local Korean peninsula of agencies our ago. facility Seoul, for weeks Korea. an who forefront of team further have establishing onboarded Solid a home lastly, development. where of driving the a the good customers, entire We expertise is others potential SPX made base battery progress and And on This the We've across technology expat ground with engagement in in combination presence. vendors, in solidifying in in our Power couple employees we Korea with located now team a are government and

on We our events call over with you forward more making sharing details Before I'll that, I the investor turn to Kevin. look this in months. wrap With up, the coming to we're year. I also planned later to for progress want say good

Kevin Paprzycki

results our with overview John. QX. start afternoon, outlook. Thanks, Then I'll financial I'll everyone. discuss for Good off today of 'XX our an

results new development initial SK and technology quarter agreements. on first financial Our reflect execution continued our

our QX on performance primarily solid planned the scaling for in our execution development development, First $X of our investments our electrolyte under reflects BMW cell quarter and reflecting Operating million. under agreement. expenses just agreements. operations and million, revenue $XX.X was This were

$XX.X loss or share. $XX.X was First and quarter per operating million loss was net $X.XX million,

Turning to with We in lab. the million investments. quarter our $XXX cash, $X.X CapEx, $XX.X liquidity going long-term operations towards total balance quarter marketable We and million mostly million of new during R&D in ended invested securities in the and electrolyte our sheet.

overall than Our heavily electrolyte last investing plant. lower our were when investments CapEx SPX we were year in

of in be milestones. receivables with working invested have that quarter. partner contract collected We a in large We the capital had end line at couple of did will QX an QX increase in this

during line on placed also quarter down the SK We payments for equipment the install.

of cash burn capital working lowering normalize our coming quarters. the remainder the our year, over to expect over We

the for during shares of quarter, just our of $X Lastly, million. common we stock total over repurchased million X a

our million requirements. statement early capital-light April. Overall, our with $X.X position cash the of see lower remaining the sitting business light with especially will the strong, of on remains flows, amount balance our sheet liquidity model You settled in on in cash CapEx as its

the our to outlook Turning for year.

over our We and with SK We million $XX the range. revenue revenue on and expected our in did for agreement are of revenue line from still the have our revenue the be to million more BMW QX This remaining from expected amount small expect tech execute and in 'XX, new we year reiterating guidance a includes installation. to $XX transfer as rest agreements. of the SK

CapEx flow that overall million expected cash the to our of to cash the investments respect will for to be guidance, investment with and total $XXX $XXX $XX we range cash $XX investment 'XX million With to are $XX to million expected million, $XX expectation million reiterating in be million. to operating be

the done far $XXX amounts continue to million million, from evaluate $X I'll the we've to year. of We'll show back call In now to future our up we repurchases million the cash addition flows in will timing repurchase to this that, With and John. investments our repurchases plan. share $XXX under have of financing the so turn

John Van Scoter

Kevin. is that will start. at to strategic targets technical, nature. to our With well goals, off whether that, confident it continues or Solid The Power financial shareholder Thanks, drive the I'm Q&A. the closing, XXXX are over this for execute XXXX term. continued execution team strong on here a value turn in to I'll long In solid

Operator

D.A. Mike [Operator with comes Instructions] Shlisky from The first question Davidson.

Michael Shlisky

shipped if could share to OEMs they just or auto partners that with. you're the you be as working all market the have XX And to beyond big you've mentioned are X up had the kind as folks? long-term size maybe you combined those of electrolyte may potential what maybe partners, may kind sense have some they signed to autos batteries Solid us, XX You how battery to of opportunity there. Those some already Power, a mentioned book maybe for sense bracket of or or

John Van Scoter

the I a OEMs. Yes, OEMs that Mike, in both. of of But a period it's in is what the good total again, skewed as market it OEMs medium-sized in would would be, it's towards time. battery joining. EV as some a battery players of more combination market. the the players this honestly I and large say of don't have of thanks it's very assessment market known combination but they available well address for

Michael Shlisky

fix resulting cell I your are opportunities differently issues Can on put is to very [ what with appreciated team's with perform it. than the small efforts runaway. cost in to thermal at going was look, also point? this you the those your originally share Got details knowledge us, or to or ]

John Van Scoter

to once want tweaks it like I clearly the chemistries, really just that that the complex in. interplay that system small of just we emphasize built, of system we're would keep but to the scope I to a Mike, cells so is reiterate the they're thousands making. again. that question overall But Great in that and we've mechanics had again environment that Yes. handful between a out situation operates battery the

affect flow. one And to a it design. the manufacturing be as make in change you have may It that area the tweaked may so those affect all

between And in about tweaks to so of all them changes, we just small bear because those interplay talk the it's mind system. the battery when for that

Michael Shlisky

a for you a bit down to it or ask and expense at And it. burn as perhaps Kevin. one seeing early little around think your that Do for is this similar it about or rate, XXXX? is it for XXXX Got cash one to up Is tapers me, there run Or run what you're year, last step the this point? major could maybe there year? are -- down this

Kevin Paprzycki

We're much Mike. this SPX originally, go going CapEx facility I install would down said spend we -- once from and But needs give our don't got guidance messaging that has we what overall later Thanks, electrolyte think at and our our investor which year is tweak our longer-term event. would down. SPX through to we changed mine

later expecting here detailed year. not any guidance changes, this we're So give but more we'll

Operator

Dobson next from with comes Our question Markets. Capital Brian Chardan

Brian Dobson

that clients new one those, and on it, guess I follow-up X mentioned. just XX you call clients the

on and You mentioned both one one potential And to have can you client. new from companies? give industry in, or What to supplying electrolyte, an potential powdered automotive feedback client ongoing an us you idea what battery? those as received of basis they're either kind

John Van Scoter

a that's a then customer And Asia. the in to second one in EV There's battery EV major Asia. player in space also the providing market, OEM

that the to we the that X So description the referred was of in call.

we've Brian. electrolyte, saying, sampling go about through it, the at what it's or they We've been X but to as resample feedback we "I do rinse The OEMs or there. this repeat cell have get very and of lines ahead reason you the cycles their the of initial to And our Then with those you characteristic?" and And taking iterations characteristic change then and a We through been of this looking say with from material point. has had at I one that encouraging, this screening as X them. desired both that could multiple many that reevaluate like it, modification is specification.

the So continue interest, a that process would strong It through of of that shows this I I year. as it of engagement. not engagement. We're say, shows through would for the that either expect clearly interest, there's result would them. balance

They the own both is designs. interplay. very have said, a their As cell system complex battery I

in I of best this cell believe so their the to balance tuning it year. that electrolyte the will through And design. make the we're continue really And perform

Brian Dobson

of Yes, their there is BMW on update excellent. you cars? toward have been doing of one work the And any prototype that with development

John Van Scoter

Yes.

in So very If collaboration to stronger with BMW anything, gotten continues our be it's XXXX. strong.

to expat periods BMW with And for come extended recall, we to engineers here to year, engineers site design actually they on get in have in that an this in cell that duplicate XXXX. they're for and on on to and from can understand that shoulder speed coming is that and I Parsdorf, so You build of our that time. running shoulder working facility Colorado up our it have then facility they objective in equipment Germany. up may

demo really point, will with as don't their in updates about still do further with about have car. the discussions we're any but as this you soon them -- have that we clarity There's you plans. at we for We share

a As coming Klasse you, going are lot I'm they're doing major and next so planning. out sure, platform year, change through the know, Neue they internal with of a

is and their close than line collaboration further no point through support we go other that So there year. really Germany of at update in our Parsdorf, as this this

Brian Dobson

of you And Excellent. stock. quarter, retired worth Okay. during X the nearly million

guess going are I Board that? are are thinking are But undervalued at how thinking additional share being about shares about being and I utilizing as Or you you're we're in in programmatic? repurchases, agreement the level. think you that about thinking nature? this opportunistic you about

Kevin Paprzycki

a have consider to the point, here all sheet back buy that at strong here Brian, opportunities too come ability we're At that stock and give back, remain going consider thankful and up buy balance to want opportunities we'll going this much they to forward. impact our as this we we point, don't flexible because but could such detail forward. our we'll

Brian Dobson

one, final by received Solid you're in. team I you regarding the of on one sneak it just out Have of Power that members It's Korea. from reception there kind companies? exciting local feedback And early could if Okay. ground the the any very building

John Van Scoter

what The it Yes. just hoped has been would reception we be.

start first your expansion, that, country in people to notice. plant you global a like take our once think really and it's I flag invest

build as suppliers team. over collaboration there difference. management, HR And so we being providers, close And treatment are nationals there partners getting as program hired also labs. from have core very yes, makes national the and we over lead have They that the already there differential out throughout and a now acknowledged technical various to with that X well clearly

I So bit on better the really little than what had is maybe the reception but it's a government side, that we exactly nicely. in had hoped, coming expected

Operator

Research question comes with Seaport next Partners. Our from Campbell Jeffrey

Jeffrey Campbell

some the it Congratulations only is and can of being any And of that see this this silicon EV point. on electrolyte cell? one this we architecture of EV all battery cell you've of electrolyte these silicon various where all electrolyte success kind the if validation out. besides is tested for the the really other that conversely, question is samplings as not, is I Or sort the architecture? -- at have laid going,

John Van Scoter

Yes. variety We Good it's question, that anode-cathode Jeffrey. believe point. different at of being a this used combinations in

obvious designs close For generally those these reasons, OEMs their pretty chest. to keep

utilized terms we So the And being and electrolyte. they're on fair number that clues, don't if for this get are lot in to with that we of say visibility, have different some will, electrolyte of a think what you point. based of at to asking I anode but of there's it's changes combinations a our cathode

technology We It of speaks now the the don't anode indifferent right the business underscores customers, work and do, the to cathode and with the our closely I our think, to of but versatility, those ultimate really on electrolyte have visibility designs. model. we're Again, it again, -- technology.

Operator

[Operator Instructions] question Anderson Vincent Our from with comes next Stifel.

Vincent Anderson

of recent the the to start you two just immediately you steps most back start SK are quick ones that develop iterating So from kind does JDA your partnership. SK? of nature the there? on of with off Or you battery few and to able A-X have forward mean remind Could a me,

John Van Scoter

expressed desire the start then but the thing, collaboration start the of built most design forward. intention last there. We have a largely as that various do we our base, But to with the go be and off because as same build year. to it's it They've A-X designs which for will will our ongoing baseline would from learned we

Vincent Anderson

going Okay. raw to All in direct right. you materials having explicitly That makes sense. material they a or And are sourcing say raw be for sourcing?

John Van Scoter

components mean the the in for do mean our You precursors you other battery? In or the for battery?

Vincent Anderson

yes, Apologies, precursors. your sorry. Yes, for

John Van Scoter

control and solely vendors precursor selection. our We No.

Vincent Anderson

to All the its curious, equipment some electrolyte need are you've shifting And assume new manufacturing R&D the prototyping you started this around only asking space. support or equipment afford already or on it the chemistry, feel own and new I'm I'm because requiring I additional electrolyte working on right. to you just lab And planning chemistry? gears. dedicating of

wondering to if segregated So going that's that. I'm just maybe come eventually like entirely with and things lines

John Van Scoter

But the powder line. as We was seamlessly have flow done, these line. whatever that there, be will I been terms me, of the, on flexibility our excuse the beyond advance midyear continuous very even integrated But existing And results of to ability the of already. has think, not SPX designed so designed exercises here. demonstrated our quickly the can DVPR to sampling our it's really batch of through as real That be our flexibility. state that, line customer that well vectors. actually it this requirements my to versus cost proven expectations. capability production has lab, I coming Well, once that advance line year as on highlights art it driving will described gone into that's we've one be previously, customer tune I the mean for in is

don't a into than will then the that the facility. that DVPR other different migrate envision lab material -- line standard So designs we SPX will

Operator

over This Van turn John session. to the for concludes closing to Scoter our any like conference question-and-answer I back remarks. would

John Van Scoter

the next Solid to and today, Power. We joining again for updating everyone, call in look interest you quarter. forward Thank your for you

Operator

today's now for you attending Thank concluded. conference The has presentation.

now may disconnect. You

Solid Power (SLDP) 7 May 242024 Q1 Earnings call transcript