Shares of glass-battery maker Solid Power (SLDP 4.27%) were moving higher today after the company released third-quarter results and shipped its first A sample electric vehicle (EV) cells for automotive qualification. It also announced other milestones as it advanced its solid-state battery technology.
As a result, the stock was up 9% as of 2:53 p.m. ET.
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Solid Power is making progress
Solid Power is still a development-stage company with essentially no revenue, but the company is developing a type of EV battery that promises a longer range at a lower cost, and its quantum glass battery technology has attracted a lot of attention from investors.
The company said that it made its first A-1 EV cell deliveries to BMW. Its A-1 cells are 60 amp-hour (Ah), have 40 layers, and are about 10 by 30 centimeters in size. CEO John Van Scooter called the shipment a "major milestone" for the company, adding, "We are very excited to make these deliveries, begin the formal automotive qualification process, and continue on our path toward commercialization."
Solid Power also said it's ramping up SP2 electrolyte volume for its EV cells and has phased out production of SP1 electrolytes.
Revenue improved from $3.6 million to $6.4 million in the quarter due to income from its joint development agreements, which was better than expectations of $4.4 million in revenue. The company also managed its cash burn with a net loss of $15.1 million in the quarter and finished the period with $422.3 million in liquidity.
What's next for Solid Power
The company's outlook for the rest of the year improved based on its hitting the milestones above. Management trimmed its cash burn guidance, saying it now expects cash used in operations to be slightly below the $70 million to $80 million range it had given before, and it sees capital expenditures slightly below its original range of $50 million to $60 million.
Judging Solid Power on its numbers at this point isn't very helpful as the company is still very small. What will ultimately determine the success of the company is how well the technology works, but it's clear that Solid Power is making progress on its technology. Keep an eye on the upcoming battery tests as the stock could get another boost once it passes that test and begins to be included in BMW vehicles.
