CEO's message

Well equipped for when the market recovers

It was clear during the year that the savings programs we introduced in 2023 and 2024 were successful, providing the desired effect as we continued to develop the operations. Today, Cell Impact is a company with a high level of activity and strong cost control.

Sales for the year ended on a weak note, albeit more positive than in 2023. Net sales for the fourth quarter amounted to SEK 2.2 million (0.8), up 175 percent year-on-year. Net sales for the full year amounted to SEK 37.3 million (47.3), down 21 percent year-on-year. The Group reported an operating loss of SEK –39.7 million for the quarter and SEK –99.0 million for the full year. Cash flow amounted to SEK –2.2 million for the fourth quarter and SEK –79.5 million for the full year.

Unique market position

Following a period spent building up Cell Impact’s capacity and capabilities in 2022–2024, which we referred to as Phase II, our position today is unique in three ways.

First, we have Cell Impact Forming: a patented forming technology that is scalable, resource-efficient and cost-effective, and can produce a high-quality flow plate in seconds.

Second, our Karlskoga facility is ready for high-volume manufacturing and has already delivered millions of flow plates.

Finally, we also have a flexible business model that allows us to either produce flow plates at our factory or to quickly establish production near our customers.

Financing 2025

Although we are ready for high-volume manufacturing, the market has not developed as quickly as we had hoped. In 2023, we decided to introduce two savings programs to adapt our operations to the lower rate of flow plate production that we anticipated at the time – and that we continued to face in 2024.

The savings programs were effective, and our current operations are now well adapted. However, the order volume fell short of our expectations for the fourth quarter. We see this trend continuing into the beginning of the first quarter of 2025, although our full-year outlook remains unchanged at this time.

If the trend of lower-than-expected order intake continues, the company will most likely need additional financing, which is not yet secured as of today.

Activity levels at the company remain high, in terms of sales as well as customer projects. The order for titanium flow plates signed in October was delivered to the customer during the quarter. We also had some 70 customer projects in various phases at the end of 2024. From a business perspective, some of these projects are in early stages, while others have come further in the process. Overall, the projects are generating revenue, but the true value of the investment in capacity and its contribution to profitability will be evident in high-volume manufacturing.

Necessary phases ahead of large volumes

As mentioned above, we have a unique position. Judging by what our customers and suppliers say – and by the actions of our competitors – we have come a long way in our development. We expect market demand to accelerate in the coming years. Our customer projects are laying the groundwork for larger orders in the future. Larger volumes cannot be achieved without several phases of simulation, test tools and test deliveries of flow plates – and our investments in technology and production are laying the foundation for the next steps. With Phase II now available and demand for plate volumes declining, we carried out impairment and disposals of unneeded equipment during the quarter.

“Our customer projects are laying the groundwork for larger orders in the future. Our investments in technology and production are laying the foundation for the next steps."

During the year, we made several advancements in developing our production capacity. In June, we announced that we had signed an agreement for a new sealing technology for flow plates, and in September, we announced a partnership within galvo welding technology. The first step is now in place and will allow us to accelerate production with the aim of manufacturing one bipolar flow plate per second. As we add new process steps to our production lines, we are automating manufacturing to reduce production costs. The investments we have made mean that our Phase II offering covers the entire flow from forming, cutting and welding to sealing the finished bipolar flow plate. Additional developments in the year include delivery of the first flow plates for electrolyzers and the first titanium flow plates.

Finally, I would like to thank all of our employees. Your commitment and hard work have been crucial in enabling Cell Impact to scale up its operations and thus be a positive force in the transition to a more sustainable world.

Daniel Vallin, CEO
Karlskoga, February 2024