Solid Power(US:SLDP)2023-11-08 01:58Financial Data and Key Metrics Changes - The company reported third quarter 2023 revenue of $6.4 million, aligning with expectations and driven by strong execution on development and government contracts [14] - Operating expenses for Q3 2023 were $27.9 million, an increase of $9.5 million from the previous year, reflecting expanded efforts to build operations [14] - The operating loss for Q3 2023 was $21.5 million, with a net loss of $15.1 million [34] - Total liquidity at the end of the quarter was $422.3 million, consisting of cash, marketable securities, and long-term investments [34] Business Line Data and Key Metrics Changes - The company successfully shipped over 80 EV cells to BMW, marking the start of the automotive qualification process [22] - The production of A-1 cells has commenced, with expectations to follow up with A-2 and A-3 cells, each with increased performance targets [24][23] - The electrolyte production at SP2 has reached sufficient volumes and quality for use in EV cells, with plans to produce 1.25 metric tons per month by year-end [27] Market Data and Key Metrics Changes - The company established a new legal subsidiary in Korea and opened office space to facilitate collaboration with local labs and universities [10][11] - The company is actively working with potential customers for electrolyte samples, with two already provided and plans for four more [27] Company Strategy and Development Direction - The company aims to establish a presence in Korea, enhance strategic supply chain capabilities, and improve external and investor communications as part of its 2024 goals [28][31] - The company is focused on increasing revenue timelines and driving cash generation opportunities, particularly through electrolyte sales [50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the team's ability to meet performance targets and emphasized the importance of collaboration with partners like BMW [22][24] - The company has not seen changes in demand from partners despite recent strikes in the U.S. automotive sector, maintaining pressure to commercialize technology by 2028 [57] Other Important Information - The company has implemented SAP for supply chain and accounting functions, enhancing operational efficiency [12] - Management plans to provide financial guidance for 2024 at year-end and expects to hold an investor event to discuss technical updates and financial projections [35][31] Q&A Session Summary Question: What are the primary endpoints for A-1 cells tested by BMW? - The company has characterization data but requires confirmation from BMW's testing after integration into packs [44] Question: What is the competitive landscape for wholesaling electrolyte? - The company believes it is near the front of the pack in producing high-quality, consistent electrolyte, with plans for further production capacity [46] Question: How does the company view the impact of Toyota's recent announcements on the market? - Management sees it as a net positive, validating sulfide-based solid-state batteries and believes there is room for multiple winners in the market [60] Question: What is the timeline for adjustments to meet BMW's A-2 requirements? - The company is in the collaboration phase with BMW to define specific requirements, which will drive the overall timeline [73]