Property, Plant and Equipment

6 Months Ended

Jun. 30, 2023

Property, Plant and Equipment

Property, Plant and Equipment

Note 3 – Property, Plant and Equipment

Property, plant and equipment are summarized as follows:

	June 30, 2023		December 31, 2022
Commercial production equipment	$	25,454	$	21,595
Laboratory equipment		7,554		3,278
Leasehold improvements		45,581		27,996
Furniture and computer equipment		1,634		1,482
Construction in progress		31,317		40,036
Total cost		111,540		94,387
Accumulated depreciation		(16,464)		(11,626)
Net property and equipment	$	95,076	$	82,761

Depreciation expenses for dedicated laboratory equipment and commercial production equipment are charged to research and development. The other depreciation expenses are included in the Company’s overhead and are allocated across operating expenses on the accompanying Condensed Consolidated Statements of Operations based on Company personnel costs incurred.

Depreciation expense related to property, plant, and equipment are summarized as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Depreciation expense	$	2,639	$	1,026	$	4,898	$	1,777

In 2022, the Company expanded its cell production capabilities through the construction of a second dry room and installation of a second cell pilot production line at its Louisville, Colorado facility, which is designed to produce larger format solid-state battery cells for the automotive qualification process.

The Company expanded its electrolyte production at its facility in Thornton, Colorado. Scaling this production will allow it to produce larger quantities of electrolyte material required to feed cell-production lines and continue research and development efforts. The Company began producing electrolyte at this facility in 2023 and has placed portions of the facility into service.

	June 30, 2023		December 31, 2022
Construction in progress
EV cell line (SP1)	$	1,083	$	2,010
Other cell development equipment (SP1)		2,703		2,206
Electrolyte production and development equipment (SP2)		27,531		35,820