Solid Power(US:SLDP)2022-11-09 01:03Financial Data and Key Metrics Changes - The company generated third quarter revenue of $2.8 million, bringing year-to-date revenue to $7.6 million [25] - Operating expenses for the third quarter were $18.4 million, reflecting increased direct program costs and investments in operational support [26] - The operating loss for the third quarter was $15.6 million, with a net loss of $12.4 million [26] - Total liquidity at the end of the quarter was just over $507 million, consisting of cash, marketable securities, and long-term investments [27] Business Line Data and Key Metrics Changes - The company delivered over 150 units of 20 amp-hour cells to automotive partners, including Ford and BMW, with additional orders confirmed during the quarter [8][9] - Production of 20 amp-hour cells faced challenges with lower initial yields due to increased production volumes, but improvements were noted towards the end of the quarter [10][15] - The company did not produce any EV cells during the third quarter but began initial builds in the following weeks, with expectations to ramp up production [17] Market Data and Key Metrics Changes - The company is experiencing tightening in the labor market, impacting hiring timelines for battery scientists, engineers, and technicians [13] - The construction of the electrolyte production facility is nearing completion, with expectations to begin powder production in early 2023 [20][23] Company Strategy and Development Direction - The company remains focused on long-term goals, aiming to become a leader in solid-state battery technology [31] - There is a strategic shift towards optimizing production processes and addressing yield challenges as the company scales up production [11][14] - The company is also exploring benefits from the Inflation Reduction Act, which may provide direct tax credits related to production and investment in facilities [39] Management's Comments on Operating Environment and Future Outlook - Management acknowledged operational challenges but expressed optimism about the demand for 20 amp-hour cells and the potential for future improvements [15][19] - The company is committed to achieving A-sample qualification by the end of the year, although this may slip into early 2023 [18][51] - Management emphasized the importance of executing their operational plans despite external headwinds [54] Other Important Information - The company plans to push out around $25 million of capital expenditures from 2022 into 2023, adjusting total projected CapEx for the year to around $75 million to $80 million [29][30] - The electrolyte production facility's construction is complete, and the company is preparing for the installation of production equipment [22][24] Q&A Session Summary Question: Initial yields and cash needs for ramping up 20 amp-hour cells - Management does not anticipate needing additional capital to address yield challenges, emphasizing that lower yields were expected during the transition to larger cell production [34][35] Question: Labor availability and proactive steps taken - Management is implementing dual shifts in operations to optimize current staff and is exploring various strategies to attract specialized labor [36] Question: Impact of the Inflation Reduction Act on the company - Management is optimistic about both direct and indirect benefits from the Inflation Reduction Act, particularly regarding production and investment tax credits [39][40] Question: Performance of 20 amp-hour cells and partner feedback - Partners have shown encouragement with the performance of 20 amp-hour cells, leading to increased orders, although this has shifted focus away from EV cell production [46][47] Question: Production goals and supply chain outlook - Management confirmed that there are no changes to the development plan, with goals to enter the A-sample phase by the end of the year or early 2023 [51]