Q2 2025 Solid Power Inc Earnings Call

Speaker #1: Good day and welcome to Solid Power second quarter 2025 earnings conference call. All participants will be in the listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero.

Speaker #1: After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your touchstone phone.

Speaker #1: To withdraw your question, please press star, then two. Please note this event is being recorded. I would now like to turn the conference over to Charlie Wangage, investor relations.

Speaker #1: Please go head.

Speaker #2: Thank you, operator. Welcome, everyone, and thank you for joining us today. I'm on today's call by Solid Power's president and chief executive officer, John van Scoter, and chief financial officer, Linda Heller.

Speaker #2: 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 US securities laws.

Speaker #2: These forward-looking statements are based on management's current expectations and assumptions about future events and are based on currently available information as the outcome and timing of future events.

Speaker #2: Except as otherwise required by applicable law, Solid 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 and Exchange Commission.

Speaker #2: Which can be found on the company's website at www.solidpowerbattery.com. With that, let me turn it over to John van Scoter.

Speaker #3: Thank you, Charlie, and thank you all for joining us. I'm pleased to provide an update on our 2025 operational goals since our last earnings call.

Speaker #3: As announced, this quarter we reached a significant achievement in our partnership with BMW. We introduced their i7 test vehicle powered by ourselves and Solid State Battery technology.

Speaker #3: We believe this development marks a major step in our overall strategy, as it underscores the potential of our electrolyte and cell technologies. It also highlights our 2025 corporate objective to drive electrolyte innovation and performance through feedback from cell development and customers.

Speaker #3: We're excited and proud to continue our partnership with BMW. This quarter we completed factory acceptance testing of the SKON pilot line. Which is a key milestone under our line installation agreement.

Speaker #3: Our collaboration with SKON supports their efforts to develop Solid State cells based on our technology and operate a Solid State pilot line that we designed to use our electrolyte.

Speaker #3: We have begun working towards site acceptance testing of the line at SKON's facilities. Which we expect to complete later this year. We're making progress on our electrolyte development roadmap.

Speaker #3: During the quarter we finished ordering long lead equipment and began detailed design for our planned installation of a continuous manufacturing pilot line for sulfide electrolyte production at SP2.

Speaker #3: The line is expected to expand our production capacity to 75 metric tons and enable us to support anticipated small volume programs of current and future customers.

Speaker #3: As of June 30th, we have received 3.3 million dollars in reimbursements under our agreement with the US Department of Energy for this project. We remain on track for commissioning of the line in 2026.

Speaker #3: Finally, we are working to ramp electrolyte sampling and identify long-term customers. During the first half of the year, we continue to see demand for multiple generations of our electrolyte from customers.

Speaker #3: Including both existing and new customers. We've engaged in active sampling to key strategic customers so far this year and we remain encouraged by our ustomer engagement and electrolyte sampling activities.

Speaker #3: I'll now turn it over to Linda to discuss our financial results and progress towards achieving our financial discipline goal. Linda?

Speaker #4: Thank you, John. I'll start with Q2 and year-to-date results beginning with revenue. During the second quarter of 2025, we generated revenue of 7.5 million dollars compared our Q1 2025 revenue of 6 million dollars.

Speaker #4: This brings revenue year-to-date to 13.5 million dollars. Revenue recognized this quarter was driven primarily by the achievement of the factory acceptance testing milestone under our line installation agreement with SKON.

Speaker #4: Operating expenses for the second quarter were 33.4 million dollars and increased of 3.4 million dollars compared to our first quarter of 2025 at 30 million dollars.

Speaker #4: This increase is driven by costs incurred to support the achievement of factory acceptance testing, which was $6.7 million of our operating costs for the quarter.

Speaker #4: Operating loss year-to-date was 49.9 million dollars and year-to-date net loss was 40.5 million dollars. Or 22 cents per share. Capital expenditures totaled 5 million dollars primarily representing costs for the construction of our continuous electrolyte production pilot line.

Speaker #4: We repurchased 3.3 million shares during Q2 at an average share price of a dollar five totaling approximately 3.6 million dollars under our stock repurchase program.

Speaker #4: Thanks to a strong balance sheet, we were able to return this capital to shareholders and maximize long-term shareholder value. Turning to our balance sheet and liquidity, during the quarter we invested $14.4 million into operations and $2.6 million into CapEx.

Speaker #4: This brings our total year-to-date cash investment to 45.7 million dollars. We ended the quarter with total liquidity of 279.8 million dollars as of June 30th, 2025.

Speaker #4: In addition, contract receivables totaled 4.6 million dollars and total current liabilities were 12.4 million dollars. We continue to be disciplined fiscally balancing efficiency and process improvements with the strategic investments in technology developments and critical infrastructure.

Speaker #4: I will now turn it back to John for some final thoughts.

Speaker #3: Thank you, Linda. In closing, we are steadily advancing towards our strategic objectives. I want to express my gratitude to our employees, partners, and stakeholders for their continued commitment and support.

Speaker #3: I remain optimistic about our potential to deliver strong returns for our shareholders. We will now take your questions. Operator?

Speaker #1: Thank you. We will now begin the question and answer session. To ask a estion, you may press star, then one on your touchstone phone.

Speaker #1: If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed, and you would like to withdraw your estions, please press star, then two.

Speaker #1: At this time, we will pause momentarily to assemble our roaster. Again, if you have a estion, please press star, then one. This concludes our question and answer session.

Speaker #1: I would like turn the conference back over to John van Scoter, for closing remarks.

Speaker #2: Thank ou for joining the call today and for your interest in Solid Power. We look forward to updating you again next quarter.