CEO's message

Focus on preparing for higher volumes

In a cautious market, we continued to empower Cell Impact for the future. Some of the most significant activities carried out during the year were the continued strengthening of our production capacity, the development of our relationships with existing and potential customers, and the completion of the savings programs we approved and implemented in 2023 and 2024.

Sales for the year amounted to SEK 37.3 million (47.3), con-sisting of both deliveries of flow plates to customers and tool and development projects. Revenue from flow plates came from sales to existing customers as well as from sales to new customers and for new applications.

During the year, we signed an agreement with a new Euro-pean customer in the electrolysis field – a transaction result-ing from several years’ work, where internal development made it possible to manufacture plates for electrolyzers without having to modify our production line. It is especially gratifying that we’ve had the opportunity to supply to elec-trolyzer manufacturers since electrolyzers are needed to produce green hydrogen through electrolysis – which itself is a requirement for the emergence of a sustainable hydrogen economy. The transaction is expected to encompass deliver-ies of flow plates and tools until mid-2026.

Supplying titanium flow plates was another new area of development during the year. This order was a repeat order from an existing customer to whom we had previously deliv-ered a prototype series.

Transactions as a basis for expansion

A large part of the year’s sales were generated by products in the early stages of development, in the form of simulations, test tools and flow plate prototype series. Although these transactions are limited in terms of sales, they are crucial for larger transactions in the future.

During the development of test tools and prototypes, we work closely with the customer on the design of the product and manufacturing process. This collaboration ensures that the customer’s flow plates meet the highest quality require-ments in terms of both the individual product and large-scale production. We act as a center of expertise for our customers, and together we develop a shared long-term business. The phases of simulation, test tools and test deliveries of flow plates make it possible to achieve larger production volumes at a later stage.

For example, during the year we received an order for tool prototypes from a leading European industrial supplier in the automotive sector, and several deals of various sizes from leading global Japanese companies through our partner F.C.C.

We are gradually moving towards more large-scale production, resulting in improved profitability.

Greater manufacturing capacity

The development of our production capacity and capabilities continued successfully in 2024. During the year, we intro-duced new technologies for sealing, welding, and punching, which have significantly increased our capacity to produce high-quality bipolar flow plates in large volumes. The new processes, galvo welding and high precision punching, mean that we have taken further steps to be able to manufacture one bipolar plate per second, which is in demand as the busi-ness transitions from the testing and prototyping stage to large-scale production. The production process encom-passes the entire chain from f orming, cutting and welding to sealing of finished bipolar flow plates.

During the year, several different marketing activities were carried out, including visiting trade fairs and current and potential customers as well as customer visits to our unique production facility in Karlskoga. We noted consider-able interest in our offering, which we hope to be able to translate into more transactions.

As previously communicated, the position we have created for ourselves through Phase II means that we have a position in the market that is unique in three ways.

• Our forming technology is scalable, resource-efficient and cost-effective
• We have a plant in Karlskoga that is ready for high-volume production – and has already delivered millions of flow plates
• Our flexible business model allows us to produce flow plates in our own factory or near our customers’ factories.

A cautious end to 2024

The focus during the year was on further strengthening the company’s position and preparing the operations for large-scale production. That said, the market has not recovered to the extent we would have liked. Market processes are taking longer than expected, and uncertainty in the external environ-ment is also contributing to market caution.

The savings programs that have been implemented mean an adaptation to the new conditions, and our organization and operations now better reflect the level of activity in the mar-ket. These programs have improved the efficiency of our oper-ations and reduced our costs. The low volume of orders seen at the end of 2024 continued into early 2025. Should the trend of a lower-than-anticipated order intake continue, the com-pany will require additional financing. The Board and the man-agement team are working continuously to secure short-term and long-term financing.

Focus on our market segment and cost efficiency

In conclusion, I am proud of the continued high level of activity within the company, which is a reflection of the fact that we nurture our business relationships, refine our customers’ flow plates and processes, and keep a clear focus on efficiency and cost awareness. At the time of writing, we have around 70 active customer projects. As these projects progress, we are gradually moving towards more large-scale production, resulting in improved profitability. 

Daniel Vallin, CEO
Karlskoga, March 2025