Release Date: February 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Solid Power Inc (SLDP, Financial) increased its electrolyte sampling activity, including to new potential customers, and opened a state-of-the-art electrolyte innovation center.
- The company expanded its relationship with SK On and grew its presence in Korea by adding business development and program management capabilities.
- Solid Power Inc (SLDP) extended joint development agreements with BMW and Ford, focusing on improving cell technologies and pilot scale manufacturing.
- The company was selected by the US Department of Energy for a grant of up to $50 million to expand its electrolyte production capabilities.
- Solid Power Inc (SLDP) achieved a 16% increase in revenue for 2024, driven primarily by the SK On agreement, and ended the year with total liquidity of $327.5 million.
Negative Points
- The company faced a difficult macroenvironment with slower-than-expected EV sales and many OEMs projecting commercial adoption of solid-state batteries in the late 2020s or early 2030s.
- Operating expenses increased by $17.5 million compared to 2023, driven by higher research and development costs and scaling of operations.
- Solid Power Inc (SLDP) reported an operating loss of $105.3 million and a net loss of $96.5 million for 2024.
- There is uncertainty regarding the timing of funding under the DOE grant due to a January 2025 executive order that paused disbursements of funds.
- The company plans to decrease the amount of internal cell development in the short term, which may impact its ability to compete on the cell front.
Q & A Highlights
Q: What should we be listening for in 2025 regarding Solid Power's progress?
A: John Van Scoter, President and CEO, mentioned that there will be both continued back and forth with existing partners and larger quantities ordered from them. The focus will be on expanding electrolyte sampling and partnerships.
Q: How does industry momentum, like Mercedes' recent range announcement, influence Solid Power's focus on electrolytes?
A: John Van Scoter explained that Solid Power's core business has always been focused on electrolytes and a capital-light model. The decision to emphasize electrolyte sampling is based on industry developments and the company's strategic assessment for 2025.
Q: Are there any tariff-related cost issues for Solid Power's 2025 business, especially concerning international shipping?
A: John Van Scoter stated that Solid Power sources materials globally and is monitoring the tariff situation. The company is well-diversified with suppliers from the US, Korea, and Europe, and will adjust as necessary.
Q: What is the significance of Solid Power's relationship with SK On?
A: John Van Scoter highlighted that the partnership with SK On involves a research and development license, a line installation agreement, and an electrolyte supply agreement. This collaboration supports SK On's efforts to develop solid-state cells using Solid Power's technology.
Q: How did Solid Power perform financially in 2024, and what are the expectations for 2025?
A: Linda Heller, CFO, reported that Solid Power generated $20.1 million in revenue for 2024, a 16% increase from 2023. For 2025, the company expects revenue to be consistent with or higher than 2024, with cash investments projected between $100 million to $120 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
