Solid Power, Inc., a U.S.-based developer of all-solid-state battery cells for electric vehicles (EVs), reported a net loss of $12.4 million for the third quarter (Q3) 2022, a 46% increase from the $8.45 million loss during the same period last year.

The revenue during the quarter increased to $2.81 million, a 348% YoY increase from $628,000.

The operating expenses during the quarter were higher than in the same period last year due to the planned investments in product development and scaling of operations. The company has started the larger-scale production of the new additional 20 Ah cell orders.

The operating loss was $15.6 million for Q3 2022.

For the first nine months (9M) of the year, the company posted a net loss of $9.08 million, a 63% year-over-year (YoY) improvement from the loss of $24.86 million.

The company, which went public last year in a $1.2 billion special purpose acquisition company (SPAC) deal, reported a revenue increase of 354% to $7.59 million from the $1.67 million reported during 9M 2021.

The company, however, saw an increase in operating loss, given the increased investments in research and development and administrative changes. The operating loss during 9M 2022 was reported at $41.61 million, a 121% YoY increase over $18.82 million.

The battery developer noted an increase in its non-operating income, attributed mainly to the change in the fair value of warrant liabilities, recorded at $28.18 million. This, in turn, helped bring down the overall net loss for the company.

Capital expenditure during the third quarter and first nine months of 2022 were $17 million and $47.9 million, respectively, representing ongoing investments in the company’s technical development and operational capabilities.

The company reported the progress on its new 20 Ah cell development and initial deliveries, with the EV cell pilot optimization and acceptance testing ongoing, which impacted the yields during the period. Its electrolyte production facility is expected to come online in the first quarter of 2023.

Doug Campbell, Chief Executive Officer of Solid Power, said, “We are pleased with the progress we made scaling up to our 20 Ah cells. The performance of these cells drove customers to confirm additional 20 Ah cell orders, which led to a significant increase in production during the third quarter. However, as we began the larger-scale production of these additional 20 Ah cell orders, we experienced lower yields. The lower yields, combined with limited labor resources, required us to devote substantial resources to our 20 Ah cell builds. As a result, initial builds of the EV cells on our EV cell pilot line began later than initially anticipated.”

The company reported revenue of $2.58 million in the Q2 of 2022, a 360% YoY growth compared to $561,000.

According to Mercom’s 9M and Q3 2022 Funding and M&A Report for Storage, Grid, and Efficiency, corporate funding for energy storage companies in 9M 2022 increased by 69%, with $22 billion raised in 92 deals compared to $13 billion raised in 74 deals in 9M 2021.