Solid Power, which develops solid-state battery technology for electric vehicles, reported a net loss for the first quarter (Q1) of 2024 that widened to $21.2 million from $19.2 million, reflecting an 11% increase year-over-year, primarily driven by increased investments in scaling operations as the company pushes forward with commercializing its technology.

Revenue for the quarter came in at $6 million, marking a robust 57% increase from $3.8 million in the first quarter of last year. The top-line growth was fuelled by the company’s execution under its joint development agreements with partners, it said.

However, operating expenses also surged 26% to $31.7 million, up from $25.1 million in the year-ago period, as Solid Power incurred higher labor and material costs associated with cell and electrolyte development activities as well as the overall scaling of its operations.

Meanwhile, capital expenditures totaled $4.1 million, primarily representing investments in expanding the company’s electrolyte production capabilities, including the build-out of a new research and development lab facility.

The Colorado-based company also said it executed technology transfers and the installation of a battery production line for its partner SK On, a South Korea-based battery maker.

The company’s electrolyte sampling program gained traction, with shipments sent out to multiple potential customers during the quarter. The management highlighted that the development of its next-generation A-2 sample cells remains firmly on track for the targeted end-of-year delivery timeline.

“On the cell side, our team is currently focused on an A-2 cell that incorporates planned improvements and addresses known challenges from our A-1 design,” said the company’s CEO, John Van Scoter.

Solid Power reaffirmed its commitment to delivering on its 2024 objectives, including further expanding electrolyte production capabilities, advancing to the A-2 cell specifications, and strengthening its presence within South Korea’s battery ecosystem.

“Our electrolyte has now been shipped to 10 potential customers (battery and EV original equipment manufacturers) outside of our existing joint development relationships. We’ve also continued to invest in our new electrolyte R&D lab, which we are targeting to complete sometime midyear,” said Scoter during a post-earnings conference call with analysts.

The company maintained its previous financial outlook, projecting full-year 2024 revenue between $20-25 million, cash usage of $60-70 million, and capital expenditures in the $40-50 million range.

Its liquidity position stood at $378.9 million as of March 31^, 2024.

The company’s net loss widened by 586.3% in the previous quarter, as higher operating expenses hurt its bottom line. In the previous quarter, it also reported a bigger net loss compared to the same period last year.