Solid Power Q2 Earnings Call Highlights
Key Points
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- Solid Power reported a $23.8 million second-quarter net loss and negative revenue of $300,000 after reversing previously recognized milestone revenue under its SK On agreement. Year-to-date revenue was $2.8 million.
- The company’s continuous electrolyte-production pilot line remains on schedule, with acceptance testing expected in the third quarter, commissioning by year-end and initial 45-metric-ton output targeted for the first quarter of 2027.
- Solid Power is advancing potential collaborations with Samsung SDI, BMW, SK On and South Korean manufacturing partners, while maintaining strong liquidity of $419.3 million and no debt.
Solid Power (NASDAQ:SLDP) reported a second-quarter net loss of $23.8 million, or $0.11 per share, as the solid-state battery materials company continued to invest in electrolyte development, customer programs and a continuous-production pilot line.
Revenue for the second quarter was negative $300,000, primarily because the company reversed $1.2 million of revenue recognized in the first quarter after changing assumptions related to certain milestone payments under its SK On research and development license agreement. Chief Financial Officer Linda Heller said the adjustment was non-cash and did not represent an obligation, cash outflow or associated cost reversal.
Year-to-date revenue totaled $2.8 million, reflecting work under a U.S. Department of Energy assistance agreement and collaboration agreements with SK On, Heller said.
Electrolyte manufacturing pilot line remains on schedule
President and Chief Executive Officer John Van Scoter said installation of Solid Power's continuous electrolyte production pilot line remained on schedule. The company has installed its major equipment, including a rotary kiln installed in May, and is preparing equipment for acceptance testing.
Van Scoter said the company expects equipment acceptance testing to be completed in the third quarter, with plant validation and operational startup anticipated in the fourth quarter. Commissioning is expected to begin in the fourth quarter and conclude by the end of the year.
The line is designed to demonstrate the scalability of Solid Power's proprietary wet-process electrolyte technology as the company transitions from batch production toward continuous manufacturing. Once fully commissioned, the line is expected to have capacity of 45 metric tons, with output anticipated in the first quarter of 2027, according to Van Scoter.
Capital expenditures totaled $6.3 million in the quarter, driven primarily by construction of the pilot line.
Partnership discussions progress
During the quarter, Solid Power continued work under its joint evaluation agreement with Samsung SDI and BMW, including electrolyte shipments supporting their development activities. Van Scoter said the company improved electrolyte performance and quality through the work and remains optimistic about potential use of its electrolyte in electric vehicles and other all-solid-state battery applications.
The initial phase of the Samsung SDI and BMW agreement is expected to expire at the end of September. However, Van Scoter said Solid Power is discussing an ongoing collaboration framework with both companies, citing performance improvements, quality gains and the company's long-term wet-process cost roadmap.
Solid Power is also pursuing a joint venture for commercial-scale electrolyte production in South Korea. Van Scoter said the company has been in active discussions with three potential parties and has advanced one discussion to a draft term sheet. The company continues to expect to announce a joint venture by year-end.
Van Scoter said South Korea is an active market for all-solid-state battery development, and a partnership with an industry-leading company could provide manufacturing scale and market access.
The company also completed its line installation agreement with SK On and received the associated milestone payment during the quarter. Solid Power is negotiating a potential new collaboration agreement with SK On, though Van Scoter said discussions remain in early stages and that additional details may be available next quarter.
Quality certification and customer interest
Solid Power completed the first stage of its ISO 9001 certification process during the quarter. Van Scoter said the one-day audit produced no major findings, though the company is addressing some minor items.
The second stage, a three-day audit, is scheduled for the middle of the third quarter. Solid Power expects to have time to address any findings before year-end and continues to target certification by then.
Van Scoter said the company is focused on improving lot-to-lot consistency and controlling customer-specific specifications, including particle size. He also said Solid Power believes its wet process provides a structural cost advantage compared with dry-process approaches, based on benchmarking work conducted with potential Korean partners.
In response to questions about potential U.S. customer development, Van Scoter said Solid Power has seen increasing interest from humanoid robotics companies over the past six months. He said several domestic companies are interested in all-solid-state batteries because of potential advantages in energy density, safety and charging rate, though the company does not yet see domestic cell manufacturing at that scale.
Solid Power also received some interest from defense and aerospace markets during the quarter, he said.
Liquidity remains strong
Second-quarter operating expenses were $30 million, compared with $29.4 million in the first quarter. Operating loss totaled $30.3 million.
The company ended the quarter with $419.3 million in total liquidity, $3.2 million in contract assets and accounts receivable, and $17.2 million in total current liabilities. Heller said Solid Power had no debt.
“We remain focused on disciplined capital allocation while continuing to invest in strategic initiatives that support long-term growth,” Heller said, adding that the balance sheet provides flexibility to execute the company’s commercialization strategy and support customer development programs.
About Solid Power (NASDAQ:SLDP)
Solid Power, Inc (NASDAQ: SLDP) is a Colorado-based company specializing in the development and manufacturing of all-solid-state rechargeable battery cells for the electric vehicle (EV) and aerospace industries. Founded in 2012 as a spin-out from the University of Colorado Boulder, Solid Power has focused on advancing solid electrolytes and high-energy battery architectures to deliver improved safety, higher energy density and longer cycle life compared with traditional lithium-ion batteries.
The company's core offerings include multilayer solid-state battery cells that utilize sulfide-based solid electrolytes and high-capacity cathode materials.
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