Solid Power Reports a Net Loss of $15 Million in Q3 2023, Up 22% YoY
The company recorded a revenue of $6.4 million in Q3 2023, a 127% YoY increase
Solid Power, which develops all-solid-state battery technology for electric vehicles (EV), recorded a net loss of $15.14 million during the third quarter (Q3) of 2023, a 22% year-over-year (YoY) increase in losses as compared to a loss of $12.4 million.
The increase in net loss was mainly due to the company’s expanded efforts in building EV cells and increasing electrolyte production, which required additional investments.
Despite the net loss, the company said its liquidity remained solid, tracking favorably to its operational and capital expenditure targets for the year.
The company recorded a revenue of $6.4 million in the quarter, an increase of 127% YoY, because of continued execution under the company’s joint development agreements.
The primary reason for the revenue increase was the strong execution of development and government contracts.
Operating expenses were $21.5 million, which was higher by 37% YoY, driven by accelerated investments in product development and the scaling of operations.
In Q3 2023, the company allocated $8.3 million in capital expenditures, with a major focus on developing its new electrolyte production facility.
“It is a reflection of our team’s strong execution that we produced and delivered our first A Sample EV cells for BMW a little over a week ago, marking a major milestone for Solid Power,” said John Van Scoter, President and Chief Executive Officer of Solid Power. “We are very excited to make these deliveries, begin the formal automotive qualification process, and continue on our path towards commercialization. These A-1 EV cells will also support BMW’s demo car program, which we expect will also be a major proof point for our technology.”
Scoter explained on the electrolyte side that they are producing electrolytes at SP2 in greater volumes and have phased out their SP1 powder production, which puts them on track to continue increasing production.
During the first nine months (9M) of the year, the company’s net loss was recorded at $46.51 million, an increase in losses by 412% YoY.
The company’s revenue for 9M stood at $15.06 million, 98.4% YoY from the same period in 2022.
Solid Power experienced operating losses of $64.99 million in the period, marking a 56% YoY rise in losses.
The period also saw capital expenditures of $29.5 million, primarily earmarked for investments in the same electrolyte production facility.
The company said it was also actively exploring opportunities in Korea and open to seeking additional OEM partners, indicating a customer-driven approach to development and commercialization.
The company recorded a net loss of $12.21 million during the second quarter of the financial year 2023, an 189% YoY decrease from a profit of $13.67 million.
Earlier, Solid Power’s net loss widened to $19.2 million in the first quarter of 2023 compared to the loss of $10.3 million YoY.