Don Young: Thank you, Eric. Yes. The DOE – the LPO process, we continue to be closely engaged with the LPO office and the team, if you will, on that side of the table and working very closely with them. Our team’s doing a great job. I think we’re putting our best foot forward. And of course, it’s always an unpredictable process. But we do believe that we’re on that timeline that we outlined earlier, and we hope to be able to keep you posted on that here as we work our way through Q4.
Eric Stine: Okay, thank you.
Don Young: Thank you.
Operator: We now turn to Alex Potter with Piper Sandler. Your line is open.
Alex Potter: Great. Thanks, guys. So I was wondering just maybe obviously, you’re working on the contract manufacturing avenue with your partner in China. Any update you can give on how that’s progressing? What gives you confidence that everything is on track and on time?
Don Young: Well, again, we’re impressed by them. We’re working very closely. It’s a matter of qualifying our products, setting up the supply chain, the logistics, working with our energy industrial customers. And it’s going very well. And we have said that we will test the system here over the course of 2023, and we’re doing just that now, and that it should be up and contributing at the early part of 2024. And Alex, we’re right on that path. So we’re confident. We’re impressed by the work that we’re doing together with our supplemental supplier and again, right on track.
Alex Potter: Okay, that’s great to hear. And then the second question I had was on the PyroThin volume that you’re selling into GM for the Ultium product. Just kind of curious, are they putting PyroThin themselves in their own inventory or are they taking it from you putting it directly into a vehicle and pushing the vehicle out? I’m just trying to understand, obviously, you’re producing, you sell to them. But I don’t know if just I guess trying to gauge whether there’s the potential for inventory buildup or shortages at any point between you GM and then downstream of GM.
Don Young: Yes. I mean, I think the best way to think about it is that it’s fair to say that a part that we’re making in Mexico right now probably won’t find its way into a finished vehicle for about a month. And so when the ramp is as significant as what we’re seeing right, looking at the 14,000 vehicles, Ultium based vehicles that we believe GM built in Q3 isn’t totally enough to explain our revenues, right. If you take our revenues divided by 14,000, you end up with a CPV that’s way higher than what’s actually there. And so GM is building up a decent amount of inventory here to enable the ramp. And from what we understand, I mean, they’ve been hand to mouth here during Q3. And we’ll have to see really kind of going back to Colin’s question on, we’ll see how long these vehicles then spend on the lot to translate that into ultimate sales for GM.
But we do see about a one month delay, which kind of gives us the chance to recognize revenues and build revenues of a month ahead of the end of the quarter, right.
Alex Potter: Okay, got it. Thanks. That’s very helpful. I’ll pass it on.
Don Young: Thank you.
Alex Potter: Thanks, guys.
Operator: Our next question comes from Jeff Osborne with TD Cowen. Your line is open.
Jeff Osborne: Thank you. Good morning. Two quick ones on my side. I was curious on the Audi win, that’s great to see. Is that part of a broader program as part of the VW family that maybe is just starting with one vehicle in 2024? Any help there would be helpful because I thought you were targeting more pack designs across multiple vehicles as opposed to a one off. So understanding that would be helpful. And then any other updates that you could share on the battery materials side of the business. You haven’t talked about that in a few quarters, but I’m just curious how that’s progressing would be also helpful to understand.
Ricardo Rodriguez: Yes. So I’m happy to jump in on the first one there, Jeff. Yes. So the Audi program is an electric vehicle platform, which means that multiple different Audi nameplates could be based on this platform.
Don Young: And then on the battery material side, we continue to work on advancing the technology and we are endeavoring to solve a hard problem. And we are making, I think steady and interesting progress on that. We’ve kept quiet on it to a great degree on purpose as we’ve continued to advance that. I think it will be an opportunity for us to talk about it in the coming earnings call or two, and I would really like for that to not only talk about the status of the technology, but perhaps also the status of one or two working relationships we have with third-parties at that point, helping us advance the technology and taking it that next step. But it’s a very exciting program for us. We’ve got an excellent team of people working on it, and its – we’re careful in our expenditures, but it’s adequately and well resourced to continue to advance that technology.
Jeff Osborne: Excellent. I appreciate it, Dan. That’s all I have.
Don Young: Thanks, Jeff.
Operator: We now turn to George Gianarikas with Canaccord. Your line is open.
George Gianarikas: Hey, good morning, and thanks for taking my question. Maybe just to focus on some of the potential EV OEM awards that you haven’t announced yet that could get announced by the end of the year. Curious, can you just shed a little light on when you expect potential volumes to start there? Just so we can understand, when we look to 2024, how diversified will your PyroThin business be away from GM? Thank you.
Ricardo Rodriguez: Yes. Thanks, George. So I mean, those awards would really kick in, in 2025. The meaningful volumes, and the ramp would happen in 2025. So for 2024, it’s fair to say that we will still be fairly concentrated on GM, which is proving out to not be a bad thing now and then Toyota and the Scania will also ramp up in the second half of next year.
George Gianarikas: Thank you. And maybe to the extent you could share any details on Toyota, I mean, they seem to be at least in their public pronouncements going back and forth with their commitment to EVs. I mean what sort of momentum do you see with that account? Thank you.
