Q4 2024 Solid Power Inc Earnings Call
Operator: Good afternoon and welcome to the Solid Powering Fourth Quarter 2024 Earnings Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero.
Good afternoon.
Woke up because its solar power, Inc. Fourth quarter 2024 earnings conference call.
All participants will be in listen only mode.
Should you need assistance. Please signal conference specialist by pressing the star followed by zero.
Operator: After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. And to withdraw your question, please press star then two. Please note, today's event is being recorded.
After todays presentation, there will be an opportunity to ask questions.
To ask a question you May press Star then one long and telephone keypad to withdraw your question. Please press Star then two.
Please note today's event is being recorded.
Melanie Solomon: I would now like to turn the conference over to Melanie Solomon with Investor Relations. Please go ahead. Thank you, operator.
Melanie Solomon: Now I'd like to turn the conference over to Melanie Solomon Investor Relations. Please go ahead. Thank you operator welcome everyone and thank you for joining US today I'm joined on today's call by solid powers, President and Chief Executive Officer, John Van to Kodak, and Chief Financial Officer, Linda Heather.
Melanie Solomon: Welcome, everyone, and thank you for joining us today.
Melanie Solomon: I'm joined on today's call by Solid Power's President and Chief Executive Officer, John Van Scoter, and Chief Financial Officer, Linda Heller. A copy of today's earnings release is available on the Investor Relations section of Solid Power's website, www.solidpowerbattery.com. I'd like to remind you that parts of our discussion today will include forward-looking statements as defined by U.S. security's laws. These forward-looking statements are based on management's current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. Except as otherwise required by applicable law, Solid Power disclaims any duty to update any forward-looking statements to reflect future events or circumstances.
Melanie Solomon: A copy of today's earnings release is available on the Investor Relations section of salad Power's website, Www dot solid power battery Dot com.
Speaker Change: To remind you that parts of our discussion today will include forward looking statements as defined by U S Securities law.
Speaker Change: These forward looking statements are based on management's current expectations and assumptions about future events and are based on currently available information at the outcome and timing of future events.
Speaker Change: Except as otherwise required by applicable law solar power disclaims any duty to update any forward looking statements to reflect future events or circumstances for a discussion of the risks and uncertainties that could cause actual results to differ materially from those expressed in today's forward looking statements. Please see solid power's most recent filings with the Securities Exchange Commission.
Melanie Solomon: For a discussion of the risks and uncertainties that could cause actual results to differ materially from those expressed in today's forward-looking statements, please see Solid Power's most recent filings with the Securities and Exchange Commission, which can be found on the company's website at www.solidpowerbattery.com.
Speaker Change: Can be found on the company's website at www Dot solid power battery Dot com.
John Van Scoter: With that, let me turn it over to John Van Scoter. Thank you, Melanie, and thank you all for joining us. 2024 was an important year for Solid Power as we made progress across the business. On the electrolyte front, we increased our sampling activity, including to new potential customers, and opened our state-of-the-art Electrolyte Innovation Center, or EIC. We significantly expanded our relationship with long-time partner SK-On and grew our Korean presence by adding business development and program management capabilities. We continued to collaborate with BMW and Ford on cell development and extended our JDAs with both partners. We were able to accomplish all this in a difficult macro environment with slower than expected EV sales and many OEMs and battery manufacturers projecting commercial adoption of solid state batteries in the late 2020s or early 2030s.
Speaker Change: With that let me turn it over to John <unk>.
John: You Melanie and thank you all for joining us.
John: 'twenty 'twenty four was an important year for solid power as we made progress across the business.
John: On the electrolyte front, we increased our sampling activity, including two new potential customers.
John: And opened our state of the art electrolyte innovation center or EIC.
John: We significantly expanded our relationship with longtime partner S. K on.
John: And grew our Korean presence by adding business development and program management capabilities.
John: We continue to collaborate with BMW and Ford on cell development and extended our JD as with both partners.
John: We were able to accomplish all of this in a difficult macro environment with slower than expected E V sales and many Oems and battery manufacturers projecting commercial adoption.
John: The solid state batteries in the late 2000, twenty's or early twenties thirties.
John Van Scoter: Before I dive into 2024 results, I want to remind everyone of where we view solid power in the battery industry and why we believe we are positioned to be a leader in deploying solid state technologies, both here in the US and abroad. Our core technology is a sulfide-based solid electrolyte material, which replaces the liquid or gel electrolyte used in traditional lithium-ion battery cells. We are pursuing a sulfide-based approach because we believe this class of electrolytes has the best known balance. of the ability to move lithium ions quickly and allow cells to be produced on industry standard roll-to-roll manufacturing equipment.
John: Before I dive into 2024 results I want to remind everyone aware, we view solid power in the battery industry and why we believe we are positioned to be a leader in deploying solid state technologies.
John: Both here in the U S and abroad.
John: Our core technology is a sulfide based solid electrolyte material, which replaces the liquid or gel electrolyte used in traditional lithium ion battery cells.
John: We are pursuing a sulfide based approach because we believe this class of electrolyte has the best known balance.
John: The ability to move lithium ions quickly and allow cells to be produced an industry standard roll to roll manufacturing equipment.
John Van Scoter: Unlike other solid-state approaches, we believe using sulfide solid electrolyte will allow conventional lithium-ion manufacturers to leverage existing processes and know-how to transition to solid-state cells. We believe our electrolyte technology has the potential to enable a step-change improvement in battery performance beyond what is currently available in conventional lithium-ion battery cells. including improved energy density, battery life, and safety performance. We are currently targeting the battery electric vehicle market due to its size and perceived demand. Though we see no reason that solid-state technologies cannot be deployed in a wide range of markets once the technology matures. Our in-depth knowledge of both electrolyte materials and cell development is a key differentiator for solid power.
John: Unlike other solid state approaches we believe using sulfide solid electrolyte will allow conventional lithium ion manufacturers to leverage existing processes and know how to transition to solid state yourselves.
John: Yeah.
John: We believe our electrolyte technology has the potential to enable a step change improvement and battery performance beyond what is currently available in conventional lithium ion battery cells.
John: Including improved energy density battery life, and the safety performance.
John: We are currently targeting the battery electric vehicle market due to its size and perceived demand.
John: We see no reason that solid state technologies cannot be deployed in a wide range of markets once the technology matures.
John: Our in depth knowledge of both electrolyte materials and sell development is a key differentiator for solid power.
John Van Scoter: We think it is critical to have a cell level understanding when developing materials that will be incorporated into a cell. We have been deliberate in developing that capability from the early days as a company. To further our business, we have built a world-class team of electrolyte and cell scientists and engineers. We also operate two pilot manufacturing facilities in Colorado, one focused on electrolyte and the other on cells. We believe having strong electrolyte and cell teams and state-of-the-art equipment allow us the opportunity to enable disruption in the battery market. In addition to our electrolyte, we design and develop cells to improve the performance of our electrolyte and support our partners cell development program.
John: We think it is critical to have a cell level understanding when developing materials that will be incorporated into a cell.
John: We have been deliberate in developing that capability from the early days as a company.
John: To further our business, we have built a world class team of electrolyte.
John: And cell scientists and engineers.
John: We also operate two pilot manufacturing facilities in Colorado, one focused on electrolyte and the other on cell.
John: We believe having strong electrolyte and sell teams and state of the art equipment, our allow us the opportunity to enable disruption in the battery market.
John: In addition to our electrolyte, we design and develop cells to improve the performance of our electrolyte.
John: And support our partners sell development programs.
John Van Scoter: Our work on early stage development, electrolyte materials, and the feedback loop with our partners has been very important in advancing our technology and refining our focus. Our commercialization strategy is to manufacture and sell our electrolyte to Tier 1 battery manufacturers and automotive OEMs that choose to produce their own cells. We also intend to pursue licensing arrangements for our cell manufacturing processes and cell design. This business model distinguishes us from companies who are or plan to be commercial battery manufacturers and allows us to focus on our core strength of electrolyte development and production. Since we do not plan to produce commercial battery cells, we expect to have significantly lower capital requirements than cell manufacturers.
John: Our work on early stage development electrolyte materials and the feedback loop with our partners has been very important in advancing our technology and refining our focus our commercialization strategy is to manufacture and sell our electrolyte to tier one battery manufacturers.
John: In automotive Oems that choose to produce their own selves.
John: We also intend to pursue licensing arrangements for our cell manufacturing processes and cell designs.
John: This business model distinguishes us from companies, who are or plan to be commercial battery manufacturers and allows us to focus on our core strength of electrolyte development and production.
John: Since we do not plan to produce commercial battery cells, we expect to have significantly lower capital requirements than cell manufacturers.
John Van Scoter: We believe our capital light business model focused on electrolyte development supported by in-house cell design is unique in our industry and provides a compelling business model moving forward.
John: We believe our capital light business model focused on electrolyte development supported by in House cell design is unique in our industry and provides a compelling business model moving forward.
John Van Scoter: I'll now provide some details on our accomplishments for 2024, beginning with electrolytes. In 2024, we increased our electrolyte sampling program, shipping to new and repeat potential customers, with the majority of volume going to Asian tier one cell manufacturers and automotive OEM. These samples have yielded constructive feedback that we are using to improve our electrolytes. We believe improved production capabilities and continued robust customer sampling will ultimately drive commercial commercialization of our electrolytes.
John: I'll now provide some details on our accomplishments for 2024, beginning with electrolyte.
John: In 2024, we increased our electrolyte sampling program shipping to new and repeat potential customers with the majority of volume going to Asian tier one cell manufacturers and automotive Oems.
John: These samples have yielded constructive feedback that we are using to improve our electrolyte.
John: We believe improve production capabilities and continued robust customer sampling will ultimately drive commercial commercialization of our electrolyte.
John Van Scoter: In support of these sampling efforts and continued development of our electrolyte, we commissioned our state-of-the-art Electrolyte Innovation Center, or EIC, in 2024. We use the EIC, which is designed for flexibility, to develop and test production processes at the smaller scale prior to transferring those learnings to our pilot electrolyte manufacturing line. with the goal to improve the performance, manufacturability, and cost of our electrolyte and precursor material.
John: In support of these sampling efforts and continued development of our electrolyte, we commissioned our state of the art electrolyte innovation center or EIC in 2024.
John: We use the EIC, which is designed for flexibility to develop and test production processes at the smaller scale prior to transferring those learnings to our pilot electrolyte manufacturing lines with the goal to improve the performance manufacture ability and cost.
John: Of our electrolyte and precursor materials.
John Van Scoter: In September 2024, we were selected by the U.S. Department of Energy for a grant of up to $50 million to install the first globally known continuous manufacturing process of sulfide-based solid electrolyte materials for advanced all-solid-state batteries. and expand our electrolyte production capability.
John: In September 2024, we were selected by the U S Department of energy for a grant of up to $50 million to install the first globally known continuous manufacturing process of sulfide based solid electrolyte materials for advanced all solid state batteries.
John: And expand our electrolyte production capabilities.
John Van Scoter: We view our selection for funding as validation of the promise sulfide-based all-solid-state batteries hold. The expansion is designed to further our technology roadmap and support anticipated small-volume programs of current and future customers as they begin to transition from traditional lithium-ion to solid-state battery technology.
John: We view our selection for funding as validation of the promise sulfide based all solid state batteries hold.
John: The expansion is designed to further our technology road map and support anticipated small volume programs of current and future customers as they begin to transition from traditional lithium ion to solid state battery technology.
John Van Scoter: In January 2025, we and the DOE entered into an agreement which formalized the terms of the grant. Our cost share under the DOE agreement is $60 million. There is some uncertainty regarding the timing of funding under the agreement due to the January 2025 executive order that paused disbursements of funds.
John: In January 2025, we and the deal we entered into an agreement, which formalize the terms of the grant.
John: Our cost share under the agreement is $60 million.
John: There is some uncertainty regarding the timing of funding under the agreement due to the January 2025, executive order that paused disbursement of funds.
John Van Scoter: pending further review. We're keeping in contact with the DOE and hope to have some certainty around the funding in the coming months.
John: Pending further review.
John: We're keeping in contact with the Doe and hope to have some certainty around the funding in the coming months.
John Van Scoter: Moving on to our partner development.
John: Moving onto our partner developments, we deepened our relationship with SK on one of the largest battery manufacturers in Korea and top 10 in the world at the beginning of 2024 by signing three agreements a research and development license a line installation agreement.
John Van Scoter: We deepened our relationship with SK-ON, one of the largest battery manufacturers in Korea and top 10 in the world, at the beginning of 2024 by signing three agreements, a research and development license, a line installation agreement, and an electrolyte supply agreement. With these agreements, we are supporting SK-ON's efforts. to develop solid-state cells based on our technology and operate a solid-state pilot line that we designed to use our electrolytes. Throughout 2024, we executed on our milestones as we prepare to install the line at FKON later this year. We believe the breadth of work we are doing with SKON is unique and validates both our technological acumen and long-term potential as an electrolyte materials supplier.
John: And the electrolyte supply agreement.
John: With these agreements we are supporting <unk> efforts to.
John: To develop solid state sells based on our technology and operate a solid state pilot line that we designed to use our electrolyte.
John: Throughout 2024, we executed on our milestones as we prepare to install the line at Essakane later this year.
John: We believe the breadth of work we are doing with Essakane is unique and validates both our technological acumen and long term potential hasnt electrolyte materials supplier.
John Van Scoter: In 2024, we extended our joint development agreements with BMW and Ford. Under the JDAs, we have been working with each of them to improve our cell technologies and pilot-scale manufacturing. After delivering A1 cells in late 2023, we shifted our focus to improving the cell design for incorporation into A2 cells. During 2024, we made progress on multiple cell designs that we expect will improve performance as compared to our A1 cell.
John: In 2024, we extended our joint development agreements with BMW and Ford under the J D. As we have been working with each of them to improve our cell technologies and pilot scale manufacturing.
John: After delivering a one cells in late 2023, we shifted our focus to improving the cell design for incorporation into a two cells.
John: During 2024, we made progress on multiple cell designs that we expect will improve performance as compared to our <unk> cells.
John Van Scoter: But we have not yet reached a determination as to a consolidated A2 bill. We also made improvements to our production processes that we believe will allow us to produce higher quality prototype cells. and we work collaboratively with BMW to enable them to utilize our learnings as they work to bring online their own solid-state cell development capability.
John: But we have not yet reached a determination as to a consolidated <unk> to build.
John: We also made improvements to our production processes that we believe will allow us to produce higher quality prototype cells and.
John: And we worked collaboratively with BMW to enable them to utilize our learnings as they work to bring online their own state a solid state cell development capabilities.
John Van Scoter: Finally, in 2024, we expanded our presence in Korea, establishing a home base for driving further engagement across the peninsula with potential customers, vendors, government-funded research institutes, and others at the forefront of battery technology development. With our growing relationships in Asia, along with strong potential customer base, we're excited for what our future could be in Korea.
John: Finally in 2024, we expanded our presence in Korea, establishing a homebase for driving further engagement across the peninsula with potential customers vendors government funded research institutes and others at the forefront of battery technology development.
John: With our growing relationships in Asia, along with strong potential customer base, we're excited for what our future could be from Korea.
Linda Heller: I will now turn it over to Linda to discuss our financial results. Linda? Thank you, John. We achieved our financial objectives for the year in terms of both revenue recognized and cash flow investment, which is comprised of cash flow from operations plus capital expenditures. In 2024, we generated revenue of $20.1 million, a $2.7 million or 16% increase compared to our 2023 revenue of $17.4 million, and slightly above our guidance range of $16 to $20 million. This increase was driven primarily by the SK-ON agreement with strong execution on the line installation agreement and completion of key steps in the transfer of our technology, accounting for $11.8 million of our 2024 revenue.
John: I will now turn it over to Linda to discuss our financial results Linda.
Linda: Thank you John.
Linda: We achieved our financial objectives for the year in terms of both revenue recognized in cash flow investment, which is comprised of cash flow from operations plus capital expenditures.
Linda: In 2024, we generated revenue of $21 million, a $2 $7 million or 16% increase compared to our 2023 revenue of $17 $4 million and slightly above our guidance range of $16 million to $20 million.
Linda: This increase was driven primarily by the SK on agreements with strong execution on the line installation agreement and completion of key steps in the transfer of our technology and accounting for $11 $8 million of our 2020 for revenue.
Linda Heller: Operating expenses were $125.5 million for the year, an increase of $17.5 million compared to 2023. This increase was driven by higher research and development costs to improve the performance of our electrolyte and cell designs, electrolyte production, equipment purchases in support of the SK-ON agreements, and scaling of operations, including establishing Korean operations. Operating loss was $105.3 million and net loss was $96.5 million or $0.54 per share. 2024 capital expenditures totaled $15.9 million, which were primarily investments in our electrolyte development and production capabilities, including the build out of the EIC. Turning to our balance sheet and liquidity, during 2024, we invested $63.9 million into operations and $15.9 million into CapEx, bringing our total cash investment to $79.8 million.
Linda: Operating expenses were $125 $5 million for the year, an increase of $17 $5 million compared to 2023.
Linda: This increase was driven by higher research and development costs to improve the performance of our electrolyte in cell designs.
Linda: Electrolyte production equipment purchases in support of the S kaon agreements and scaling of operations, including establishing Korean operations.
Linda: Operating loss was $105 $3 million and net loss was $96 $5 million or <unk> 54 per share.
Linda: 2020 for our capital expenditures totaled $15 9 million, which were primarily investments in our electrolyte development and production capabilities, including the build out of the EIC.
Linda: Turning to our balance sheet and liquidity during 2024, we invested $63 $9 million into operations and $15 $9 million into capex, bringing our total cash investment to $79 $8 million. This was below our guidance range of 100 to 120.
Linda Heller: This was below our guidance range of $100 to $120 million. During the year, we ensured that we were prioritizing projects and outlays to preserve cash runway while still meeting our goals and objectives. As a result of our lower spend, we ended the year with total liquidity of $327.5 million.
Linda: <unk>.
Linda: During the year, we ensured that we were prioritizing projects and outlays to preserve cash runway.
Linda: I'll still meeting our goals and objectives as a result of our lower spend we ended the year with total liquidity of $327 $5 million.
Linda Heller: Moving on to guidance. For 2025, we expect cash investment, representing cash used in operations and capital expenditures, to be in the range of $100 to $120 million, excluding any benefit from the DOE grant.
Linda: Moving onto guidance for 2025, we expect cash investment representing cash used in operations and capital expenditures to be in the range of 100 $220 million, excluding any benefit from the Doe Grant.
Linda Heller: We anticipate that our most significant capital expenditures in 2025 will relate to facility engineering and construction of a third pilot electrolyte line using a continuous manufacturing process, as well as improvements to cell development capabilities. We expect 2025 revenue to be consistent with or higher as compared to 2024.
Linda: We anticipate that our most significant capital expenditures in 2025.
Linda: Related to facility engineering, and construction of a third pilot electrolyte line using a continuous manufacturing process as well as improvements to sell development capabilities.
Linda: We expect 2025 revenue to be consistent with our higher as compared to 2024. However, we are not providing a range.
Linda Heller: However, we are not providing a range. This guidance reflects our continued efforts to balance the investments required to develop and commercialize our electrolyte while managing spend and maintaining financial discipline to increase our cash runway in the context of overall market signals.
Linda: This guidance reflects our continued efforts to balance the investments required to develop and commercialize our electrolyte, while managing spend and maintaining financial discipline to increase our cash run rate in the context of overall market signals.
John Van Scoter: I will now turn it back to John for some final thoughts. Thank you, Linda. Solid Power's key 2025 focus is on continuing to develop demand for our electrolyte through aggressive sampling and exploring additional partnership opportunities. In 2024, multiple new and repeat potential customers requested samples of our electrolyte, and we sampled a greater quantity of electrolyte in 2024 than 2023. We believe this is largely due to Tier 1 cell manufacturers and OEMs coalescing around sulfide solid-state batteries as the preferred solid-state cell architecture of the future, and we view this as a validation of our intended business model.
John: I'll now turn it back to John for some final thoughts.
Linda: Linda.
Speaker Change: Solid powers key 2025 focus is on continuing to develop demand for our electrolyte through aggressive sampling and exploring additional partnership opportunities.
Speaker Change: In 2020 for multiple new and repeat potential customers requested samples of our electrolyte and we sampled a greater quantity of electrolyte in 2024, then 2023.
Speaker Change: We believe this is largely due to tier one cell manufacturers and Oems coalescing around sulfide solid state batteries.
Speaker Change: As the preferred solid state cell architecture of the future and we view this as a validation of our intended business model. We're encouraged by the number of entities engaging and sulfide based solid state development.
John Van Scoter: We're encouraged by the number of entities engaging in sulfide-based solid-state development. As we respond to sampling requests, we're seeing a variety of approaches to cell designs and manufacturing processes. This has led us to increase our focus on developing a deeper understanding of how our electrolyte affects certain cell performance parameters, whether in our cell design or in others. We believe this can give Solid Power a competitive advantage and drive commercialization of our electrolyte compared to electrolyte producers that do not have the same level of experience and confidence that we have with cells. During 2025, we'll focus our cell development teams primarily on supporting the development efforts of our electrolyte team.
Speaker Change: As we respond to sampling requests were seeing a variety of approaches to cell designs and manufacturing processes.
Speaker Change: This has led us to increase our focus on developing a deeper understanding of how our electrolyte affects certain cell performance parameters.
Speaker Change: Weather in our cell design or in others.
Speaker Change: We believe this can give solid power a competitive advantage and drive commercialization of our electrolyte compared to electrical eight producers that do not have the same level of experience and confidence that we have with cells.
Speaker Change: During 2025, we will focus our cell development teams, primarily on supporting the development efforts of our electrolyte team.
John Van Scoter: This continues the natural progression for our business, as other companies have expanded their solid-state cell capabilities and now have a need for high-performing, high-quality electrolyte materials. Remember, our business model is to supply electrolyte to the cell developer. not to compete with them on the cell front. By pursuing this strategy, we will decrease the amount of internal cell development we undertake in the short term, including scaling back on significant cell manufacturing as part of the automotive qualification process. This is driven by our view that our best path to success is to enable worldwide cell development with our electrolyte and help accelerate the adoption of solid state technologies.
Speaker Change: This continues the natural progression for our business as other companies have expanded their solid state sell capabilities and now have a need for high performing high quality electrolyte material.
Speaker Change: Remember our business model is to supply electrolyte to these sell developers.
Speaker Change: Not to compete with them on the cell front.
Speaker Change: By pursuing this strategy, we will decrease the amount of internal cell development, we undertake in the short term, including scaling back on significant cell manufacturing as part of the automotive qualification process.
Speaker Change: This is driven by our view that our best path to success is to enable worldwide sell development with our electrolyte and help accelerate the adoption of solid state technologies.
John Van Scoter: However, to be clear... We do still intend to work closely with our partners, including Ford and BMW, under their respective JDAs. We believe this strategy gives Solid Power the best opportunity to be the electrolyte supplier of choice to Tier 1 cell manufacturers and OEMs that choose to produce their own cell.
Speaker Change: However to be clear.
We do still intend to work closely with our partners, including Ford and BMW under their respective JD as well.
Speaker Change: We believe this strategy gives solid power the best opportunity to be the electrolyte supplier of choice to tier one cell manufacturers and Oems that choose to produce their own cells.
John Van Scoter: As we embark on another year, and with an evolving landscape in mind, we're outlining the following additional operational goals for 2025. First, we will continue to execute on our electrolyte development roadmap, including creating a continuous manufacturing process. by beginning facility engineering and construction of a third pilot line at SP-2.
Speaker Change: As we embark on another year and with an evolving landscape in mind, we're outlining the following additional operational goals for 2025.
Speaker Change: First we will continue to execute on our electrolyte development roadmap.
Speaker Change: Including creating a continuous manufacturing process.
Speaker Change: By beginning facility engineering and construction of a third pilot line at SP too.
John Van Scoter: We currently anticipate the continuous process pilot line to be commissioned in the mid 2026 timeframe. In addition, we will continue to work to drive demand for our electrolytes. We currently have significant production capability, which we believe differentiates us from our competition. With the EIC coming online, we expect to be even more flexible and responsive to customer requirements and further demonstrate our leadership position in this industry.
Speaker Change: We currently anticipate the continuous process pilot line to be commissioned in the mid 2026 timeframe.
Speaker Change: In addition, we will continue to work to drive demand for our electrically.
Speaker Change: We currently have significant production capability, which we believe differentiates us from our competition.
Speaker Change: With the EIC coming online, we expect to be even more flexible and responsive to customer requirements and further demonstrate our leadership position in this industry.
John Van Scoter: Next, we plan to execute our partner commitment. specifically the SK Online installation. This is a significant undertaking that requires strong coordination between the Solid Power and SKON teams. As I mentioned, this relationship is unique for us, as we have been working to enable SKON efforts to develop solid-state cells based on our technology and operate a solid-state pilot line that we designed to be used with our electrolytes. I'm encouraged by the progress to date, and I look forward to the line being installed at SKON's facility later this year to begin validation efforts.
Speaker Change: Next we plan to execute our partner commitments, specifically the S K online installation.
Speaker Change: This is a significant undertaking that requires strong coordination between the solid power and S. K on teams.
Speaker Change: As I mentioned this relationship is unique for us as we have been working to enable essakane efforts to develop solid state cells based on our technology and operate a solid state pilot line that we designed to be used with our electrolyte.
I'm encouraged by the progress to date and I look forward to the line being installed at Essakane facility. Later this year to begin validation efforts.
John Van Scoter: And finally, we expect to maintain financial discipline while ensuring ongoing investments in technology development and production capability.
Speaker Change: And finally, we expect to maintain financial discipline, while ensuring ongoing investments in technology development and production capabilities.
John Van Scoter: I'd like to thank our employees, partners, and stakeholders for their loyalty and dedication. I am energized by our strategy and look forward to a year of technology and customer progress.
Speaker Change: I'd like to thank our employees partners and stakeholders for their loyalty and dedication I am energized.
Speaker Change: <unk> by our strategy and look forward to a year of technology and customer progress.
Operator: We'll now take your questions.
Speaker Change: We will now take your questions.
Operator: Operator. Thank you.
Speaker Change: Operator.
Speaker Change: Thank you we will now begin the question and answer session.
Operator: We will now begin the question and answer session. To ask a question, you may press star then 1 on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys.
Speaker Change: To ask a question you May press Star, then one on or telephone keypad.
Speaker Change: If you're using a speakerphone please pick up your handset before pressing the keys.
Operator: To withdraw your question, please press stars and two.
Your question. Please press Star then two.
Operator: At this time, we will pause momentarily to a sub-wire ask.
Speaker Change: At this time, we will pause momentarily to assemble our roster.
Christopher Pierce: And today's first question comes from Chris Pierce at Needham. Please go ahead. Hey, good afternoon, everyone. Good to hear from you guys. Just two for me, I guess, you know, if we think about 24 and 25, you sort of laid it out there. What should we be listening for as a 25? Is it new partners sampling electrolytes? Is it more back and forth between existing partners and then taking larger size samples? Like what's the right kind of path forward or what should we be listening for as we work through 25?
And today's first question comes from Chris <unk>. Please go ahead.
Speaker Change: Hey, good afternoon, everyone and good to hear you guys. Just two for me I guess if.
Speaker Change: If we think about 'twenty four 'twenty five you sort of laid it out there but.
Speaker Change: What should we be listening tour is a 25 is it new partners bring electrolyte is it more back and forth between existing partners in them, taking larger size samples like what's the right kind of.
Speaker Change: Path forward or what should we be looking for as we look to 'twenty five.
John Van Scoter: Hey, Chris, good to hear from you again. I think you'll see some of both of those from us. There'll continue to be some back and forth, but I think you can expect that there will be larger quantities that will be ordered from existing customers that we've been sampling through 24. Okay, and then on the yeah, I know it's hard to keep track of all the headlines in the industry. But you know, if you see things like Mercedes 621 miles of range just out this week, is that sort of should we take that as industry momentum at the OEM level, and that's why you're prioritizing the electrolyte side of the business?
Speaker Change: Hey, Chris good to hear from you again.
Speaker Change: I think youll see some of both of those from us.
Speaker Change: They will continue to be some back and forth.
Speaker Change: But I think you can expect that there will be larger quantities that will be ordered from existing customers that we've been sampling through 'twenty four.
Speaker Change: Okay, and then on the <unk>.
Speaker Change: It's hard to keep track of all the headlines in the industry, but if you see things like Mercedes 621 miles of range. Just out. This week is that sort of should we take that as.
Speaker Change: Industry momentum at the OEM level and Thats why you are prioritizing the electric side of the business or is it.
John Van Scoter: Or is it, I guess I just don't want to conflate two things that aren't related. So I just, I'd love for you to go a little deeper on the decision to kind of, your final comments on moving forward, maybe a little bit with a heavier leverage towards. Yeah, well, first of all, I mean, as you know, Chris, electrolyte and the capital light model has always been our core business. And so we've carried the flag on cell development for a number of years, really, to get the industry jump started, if you will. In our strategic assessment, looking at 25, we saw a number of people, based on the sampling activities we had in 24, largely, that people had picked up that flag and they were starting to carry it at an increased pace.
Speaker Change: I guess I, just don't want to conflate two things that arent related so I decided let's go a little deeper on the decision to kind of get final comments on moving forward, maybe a little bit with the heavier leverage towards electric sampling.
Speaker Change: Yes.
Speaker Change: First of all I mean, as you know, Chris electrolyte and the capital Light model has always been our core business and so we've carried the flag on cell development for a number of years really to get the industry Jumpstarted. If you will.
Speaker Change: In our strategic assessment looking at 25, we saw a number of people based on the sampling activities. We added 24 largely.
Speaker Change: That people had picked up that flag and they were starting to carry it.
Speaker Change: Increased pace and so that was a lot of what was behind us, saying all right. We've got it to this point.
John Van Scoter: And so that was a lot of what was behind us saying, all right, we've gotten it to this point. Let's get back to our core business model. And let's really, really innovate around the electrolytes to make the cell performance of those end customers the best it can be. Relative to industry announcements, anything that comes out that progresses demo cars or other developments, we welcome. The industry is so nascent at this point that we would welcome any of those kind of advances going forward.
Speaker Change: So, let's get back to our core business model, and let's really really innovate around the electrolyte to make the self performance of those end customers. The best it can be.
Speaker Change: Relative to industry announcements anything that comes out that progresses.
Speaker Change: <unk> cars or other developments we welcome.
Speaker Change: The industry is so nascent at this point that we would welcome any of those kind of advances.
Speaker Change: Going forward.
Christopher Pierce: Okay, thanks for the time and good night. Thank you.
Speaker Change: Well, thanks for the time and good luck.
Speaker Change: Thank you and as a reminder, if you would like.
Operator: And as a reminder, if you would like to ask a question, please press star then 1 at this time. We'll pause for just a moment to assemble our audience.
Speaker Change: Ask a question. Please press star one at this time, we'll pause for just a moment to assemble our roster.
Mike Shlisky: And our next question today comes from Mike Shlisky with D.A. Davidson. Please go ahead. Yes, hi. Good afternoon. One quick one for me. This is about Paris. I'm shipping things back and forth. between countries.
Speaker Change: And our next question is a are confirmed.
Davidson: With da Davidson.
Speaker Change: Go ahead.
Speaker Change: Yes, hi, good afternoon, one quick one for me.
Speaker Change: Sure.
Speaker Change: Just to bring things back and forth.
John Van Scoter: I know it's mostly Korea and there's some Europe in there as well, but I guess I'm kind of curious, first of all, are the materials that are in your formula currently sourced mostly within the United States or non-tariff countries? Maybe secondly, are there any cost issues when talking about tariffs for the 2025 business year? Yeah, we source from around the globe. And so we're still assessing what all of the tariff potentials will be and we'll adjust accordingly as we go forward. But I would say that we are very well diversified. Yes, we have US suppliers for precursors and equipment, but we do get both precursors and equipment from Korea, as well as from Europe.
Speaker Change: Great countries, I know, it's mostly Korea and Europe in there as well.
Speaker Change: But I guess I'm kind of curious well first of all are the or.
Speaker Change: Are the materials that are in your in your Formula currently.
Speaker Change: Mostly within the United States or non tariff countries.
Speaker Change: Secondly are there any cost issues when we talked to you about tariffs.
Speaker Change: For the 2025 business here. Thank you.
Speaker Change: Yes, we source from around the globe.
Speaker Change: And so we're still assessing what all of the tariff potentials, we'll be and we'll adjust accordingly as go forward.
But I would say that we are very well diversified yes, we have U S suppliers.
Speaker Change: For precursors and equipment, but we do get a.
Speaker Change: Both precursors and equipment from Korea.
John Van Scoter: So we're monitoring the situation. As you know, well, it's a very dynamic situation and we'll make adjustments accordingly. But I think at this point, we're very well diversified in terms of continuing the business moving forward. And thank you.
Speaker Change: As well as from Europe. So we're monitoring the situation as you know well, it's a very dynamic situation and we will make adjustments accordingly, but I think at this point, we're very well diversified in terms of continuing the business moving forward.
Speaker Change: Thank you.
Speaker Change: Thank you. This concludes our question and answer session.
Operator: This concludes our question and answer session.
John Van Scoter: I'd like to turn the conference back over to John Van Scutter for closing remarks. Thank you for joining the call today and for your interest in Solid Power. We look forward to updating you again next quarter. Thank you. The conference is now concluded. We thank you all for attending today's presentation.
Jonathan: Turn the conference back over to Jonathan for closing remarks.
Jonathan: Thank you for joining the call today and for your interest in solid power.
Jonathan: We look forward to updating you again next quarter.
Jonathan: Thank you. The conference has now concluded we thank you all for attending today's presentation. You may now disconnect your lines and have a wonderful day.
Operator: You may now disconnect your lines and have a wonderful day. © BF-WATCH TV 2021
Jonathan: Yeah.
Jonathan: Yes.
Jonathan: Yeah.
Jonathan: [music].
Jonathan: Yeah.
Jonathan: Okay.
Jonathan: [music].
Jonathan: Yeah.
Jonathan: [music].
Jonathan: Yeah.
Jonathan: Yeah.
Jonathan: Yeah.
Jonathan: [music].
Jonathan: Yeah.
Jonathan: Yeah.
Jonathan: Yeah.
Jonathan: Yeah.
Jonathan: Yes.
Jonathan: Yes.
Jonathan: [music].
Jonathan: Yeah.
Jonathan: [music].
Jonathan: Yes.
Jonathan: Yeah.
Jonathan: Yeah.
Jonathan: Yeah.
Jonathan: Yeah.
Jonathan: Okay.
Jonathan: Okay.
Jonathan: [noise].