Eyes on the prizeFor me this is not an earnings story, it is far too early for that. Whether Volta makes or loses 2 or 3 million is not a material fact. What matters is making sure GRA does not commit to a $300 plus million facility to build batteries with no customers, and that discipline has been shown by management.
I am guessing the first partner in Volta might have been Lion and they have not been able to fulfill their requirements, have no financial capability, and would not be a bankable partner to rely on. it was a smart move to cut the losses, mothball this for a while, and either conditions improve and better partners are found, or Volta gets terminated, but there is no rush on that.
If it is terminated, I doubt it has a material effect as most of the costs were expensed as they occurred and they have not spent much on capex there. Perhaps mgmt will clarify.
The battery pilot plant is very small, useful to showcase the technology, but it was never intended to make significant revenues
I am in this for the graphene expansion, and the possibilities of products like drilling fluids. If the company can clarify where the new 12,000 tons will be made, the financing and at least some of the customers, that will add confidence to the top line revenue growth. This has been delayed by the Volta distraction , but that is behind them now, and it is a good time to give guidance on the q1 call and clarify the capacity details.
I would also like to hear from management about the SMC capacity increases that are coming online next year. Can investors expect more of those types of contracts contracts ?
A summation of grants received and grants expected would also be appreciated.
Best of luck