Solid Power (SLDP) Q2 results: $2.6M in revenue, EV-scale solid-state cell testing starts in Q3

Solid-state battery manufacturer Solid Power has posted its financial results for Q2 of 2022, highlighting significant revenue increases compared to 2021 as well as continued progress to deliver 20 Ah silicon anode cells to automotive partners like Ford and BMW. Additionally, Solid Power intends to begin production of EV-scale solid-state battery cells for internal testing this coming quarter.

Solid Power, Inc. ($SLDP) is a Colorado-based battery developer specializing in solid-state electrolyte technology it plans to utilize in bringing scalable cells to EV manufacturing to ideally replace current lithium-ion batteries.

Solid Power caught our eye back in 2017 when BMW announced a major investment in it. Other major companies on board include Hyundai Motor Group and Samsung. In 2019, Ford joined the solid-state investment party to help get the company’s silicon anode technology over the finish line.

Ford was later part of an additional $130-million-dollar financing round last year, which also included BMW. Soon thereafter, Solid Power shared news of a partnership with automotive battery supplier SK Innovation to jointly develop solid-state battery cells for the automakers above in addition to other OEMs in the future.

This past June, Solid Power announced it had completed installation of its pilot manufacturing line to begin assembling and testing solid-state EV cells, some of which will be sent to Ford and BMW.

Following its Q2 2022 financial report today, Solid Power remains on track and will soon be testing even more powerful, EV-scale solid-state battery cells at its own facilities.

Highlights of Solid Power’s Q2 2022 earnings call

Solid Power shared details of its financials in a press release coinciding with its Q2 earnings call with investors this afternoon. Revenue for the second quarter of 2022 was $2.6 million, adding up to a total of $4.8 million for the first half of this year. This is quite a jump compared $0.6 million in revenue in Q2 of 2021 and $1 million for the first half of 2021.

The company’s operating loss was $14.7 million this quarter, which it says was anticipated due to larger investments in product development and scaled operations. Still, Solid Power’s total liquidity was sitting at $534.2 million as of June 30, 2022.

Halfway through 2022, Solid Power’s financial outlook continues to strengthen, exceeding previous estimates. Per the release:

After delivering strong first half 2022 revenue results, Solid Power now expects 2022 revenue to exceed the high end of the previous guidance range of between $3 million and $5 million. Solid Power reiterates its outlook for total 2022 cash investment of between $150 million and $170 million. Solid Power expects to have total combined cash, cash equivalents, marketable securities and long-term investments of between $420 to $440 million at the end of the year.

Here are some of the key highlights to note on the solid-state production side:

• 2 Ah Silicon EV cells have been delivered to automotive partners.
• EV cell pilot line completed installation in June.
  • EV-scale cell production for internal testing is anticipated during Q3.
  • Solid Power has previously shared that when the cell pilot line gets running at full capacity, it is expected to produce 300 cells per week, which translates to about 15,000 solid-state battery cells per year.
• Delivery of 20 Ah Silicon EV cells to automotive partners (Ford and BMW) is also anticipated for Q3.
• Construction of electrolyte production facility remains underway in 2022, but supply chain issues have delayed some of the deliveries if vital equipment.
  • As a result, production of electrolyte powder is now expected to begin in Q1 of 2023.
  • Solid State said it still believes this delay will have no impact on its cell development and delivery timeline.
• Delivery of EV-scale Silicon EV cells to automotive partners is expected before year’s end.

Lastly, Solid Power shared that it intends to begin the automotive qualification process for its EV-scale Silicon EV cells, officially kicking off the approval process to get them into production vehicles on roads.