Chip Moore: Understood. Appreciate all the detail. Thanks.
Ricardo Rodriguez: Thank you.
Operator: Thank you. The next question on the line is from Tom Curran from Seaport Research Partners. Please go ahead, Tom.
Tom Curran: Good morning, guys. Thanks for squeezing me in here.
Ricardo Rodriguez: Hey, Tom.
Tom Curran: So under your design award from Toyota for the bZ4X, my understanding, the contract scope extends to the Subaru Solterra and Lexus RZ lineups. Could you confirm or clarify, which models, the contract does extend you and then for all of them combine, whichever are included, just give us some rough idea of the expected production volumes and under that Toyota Design Award for this year similar to what you’ve been able to do for us for GM?
Ricardo Rodriguez: Yes. No that’s a good question, Tom. So yes, I mean our parts are in the Subaru and the Lexus variant of the of the bZ4X as well. We don’t quite have the IHS numbers here near us but we’ll be sure to incorporate that here as we can in the next quarterly update.
Tom Curran: Great. That will be helpful. Thanks, Ricardo. And then a follow-up on the business development funnel. When it comes to the call it roughly 20 OEMs that you’re in discussions with – do any of those conversations, are they touching on or are they explicitly focused on plug-in hybrid programs? And if not just in general, could you give us an idea of where you think pirating role for plug-in hybrids might be?
Ricardo Rodriguez: Yes. So maybe just to clarify Don’s remarks. So Don mentioned the 20 programs and that could be with eight to 12 OEM.s not necessarily the – not necessarily 20 different customers that those programs would be in. Some of those are actually for cell modules that are scope to be potentially in a plug-in hybrid vehicle. For us the plug-in hybrid vehicles really, if you look at the content per vehicle opportunities not the same as for EV platform or vehicle. So we obviously are a lot more focused on pure EVs. The plug-in hybrid volumes blips that we’ve seen recently, we believe that they just enable sustained ICE volumes and aren’t necessarily taking volumes away from EVs in 2026, 2027 and 2028 which is when we would be launching these programs. So even though we’re quoting them, they’re not really the main priority for the team.
Tom Curran : Got it. Makes sense. I appreciate the thoughtful answers as always.
Ricardo Rodriguez : Any time. Thanks, Tom.
Don Young: Thanks, Tom.
Operator: Your next question on the line is from Jeff Osborne from TD Cowen. Please go ahead.
Jeff Osborne: Hey, good morning. Two quick ones. I think Ricardo you had mentioned in prior calls that it would take roughly a year and close to 500 million to completion of Plant 2 is that still the rough time line if you were to get started in November?
Ricardo Rodriguez : Yes. I don’t think we have an update there. The year would be a stretch, but I think 12 to 18 months max would be a better estimate.
Jeff Osborne: Got it. And then maybe just following up on Toyota, I think on prior calls you had mentioned that there was some discussion about Toyota moving to more of a common platform across of their electric vehicles instead of just the BD, did done perhaps visit them on his way back from China or any update as to the broader scope expansion there at Toyota?
Ricardo Rodriguez : I think we’d have to wait until you hear something from them. I don’t think you stopped by Japan right now. Yes.
Jeff Osborne: Makes sense. Thanks much.
Ricardo Rodriguez : Any time.
Don Young: Thank you.
Operator: Your next question on the line is from Alex Potter from Piper Sandler. Please go ahead, Alex.
Ben Johnson: Hi, everyone. This is Ben Johnson on for Alex. And I guess my first question is in terms of, are you guys in close dialogue with General Motors and as well as other automotive customers to kind of determine the level of demand for these newly launched vehicles. And can you kind of elaborate on how those discussions are going?
Ricardo Rodriguez : Well, the demand is determined by our customers, right? I’m not sure there’s a ton that we could say to adjust their production levels. They’re better at this than us frankly. And, I mean, we get a demand feed from customers and we supply to that. That’s the extent. And sometimes there isn’t a ton of dialogue. I mean, we basically just get a demand feed every week and we work hard to deliver that.
Don Young: Yes, there’s not — 0I understand. Yes. Ben, I would just say, you know, we — as Ricardo says, we do get a weekly update that looks out over the course of the next four weeks and beyond. And we do get a pretty good signal from that weekly communication. And so — in part, we won the PACE Award for our collaboration and partnership with General Motors. We’re pretty close to that company and really many of our OEMs. And so we have colleagues who are walking the halls of GM on a very regular basis and others as well. So we have close relationships with them. But there is still an element of arm’s length when it comes to some of these communications.
Ben Johnson: Got it. Thanks. And then just following up on a previous question as a result of companies emphasizing hybrids notice. Are you seeing any indications from OEMs that there’s less urgency to it can move forward with full BEV?
Ricardo Rodriguez : Yes. I mean, frankly, we see the emphasizing of hybrids in investor communications not necessarily in development roadmaps and the industrialization plans for these companies. So time will tell on how many hybrids will really be out there in two or three years’ time. A lot of OEMs that we’ve seen being very vocal about hybrids. We just don’t see people internally working on those hybrids. In some cases the folks that would have been working on the modified ICE portion of the powertrain have actually been laid off from those OEMs. So I think people are still with their foot on the accelerator around the EV transition. But obviously one progress, they have some alternate hybrids they could sell in between. They’ll just say yes we could do that without providing a specific plan. And I think that that’s what we’re seeing inside of several of these customers.
Ben Johnson: Got it. Thank you very much for taking time.
Operator: And our next question is from Amit Dayal from H.C. Wainwright. Please go ahead.
Amit Dayal: Thank you. Good morning everyone. With respect to Amazon — no value on page eight regarding — thermal value contracts Ricardo with these larger is there a cap on pricing over the next 12 to 18 months that could come up given margin upside. I guess I’m just trying to see if you know if you if your costs move higher or could you pass those on to B systems?
Ricardo Rodriguez: No, I mean the contracts are very simple in terms of pricing you basically have a part number and the price that is basically set unless there’s a significant redesign on what that part entails. We don’t have any sort of commodity pass through with our customers just yet. And I think that that was by design just to keep things simple. And as you are aware right I mean these Tier one auto supplier contracts have evolved to the point that they’re as vague and noncommittal as possible. But again it’s really the fact that you’re designed in and the fact that you’ve built up the capacity to support the customer that that gives you staying power within that within the program.
Amit Dayal: Okay, understood. Thank you. And then on the on the plan to financing rate I mean and it looks like if the DOD should award in a company like you with this I mean this grant or loan, but in case that doesn’t come through are there plans in place to move quickly to other financing options given sort of the sense of urgency I’m getting from this call about we’re moving forward with plan two.
Ricardo Rodriguez: Yes. I mean all I can say is that we’re moving with the same sense of urgency within the DOE and DOE has actually moved with extreme urgency since we got to this final phase of due diligence and term sheet negotiation. That’s why we added there. On slide 14 literally straight from the DOE’s website what the work entails. And if you look at what those workstream entails, it’s pretty intense work. I mean they’ve really given us some of their best resources. They’re extremely dedicated to getting this done and we’re all together playing to win in this. So Plan A is to win.
Amit Dayal: Got it. Understood. Thank you, guys. That’s all I had.
Operator: We have no further questions. So I’d like to hand back to Don Young for closing remarks.
Don Young: Thank you. Thank you, everyone. We appreciate your interest in Aspen Aerogels and we look forward to reporting to you our second quarter 2024 results in early August. Be well, have a good day. Thank you.
Operator: Thank you everyone. This does conclude today’s call. You may now disconnect your line and enjoy the day.
