Solid Power, Inc.

What they do

Solid Power produces a sulfide-based solid electrolyte from lithium sulfide (Li2S) and other inputs on two pilot batch lines, used for customer sampling and internal cell development. It builds multi-layered stacked pouch cells (0.2 Ah to 60 Ah) with NMC cathodes and silicon-based anodes in pre-pilot and pilot lines. It collaborates with BMW of North America, Samsung SDI, SK On and other OEMs and Tier 1 battery manufacturers. The stated model is selling electrolyte and licensing cell designs and manufacturing processes, which the company says requires less capital than making commercial cells.

Revenue drivers

• Research and development collaboration revenue — Revenue comes from collaborative arrangements with partners such as SK On and BMW/Samsung SDI, recognized over time using the cost-to-cost input method under ASC 808. This is essentially all of reported revenue; 2025 annual revenue was $17.9M.
• Grant income — Grant income under an assistance agreement with the U.S. Department of Energy is reported alongside collaboration revenue; second quarter 2026 revenue and grant income combined was negative $0.3M.
• Future electrolyte sales and licensing — No commercial electrolyte sales or cell technology licensing revenue has been reported; the company states it has not reached agreement with partners on economic terms for commercial electrolyte sales or licensing.

Recent performance

Second quarter 2026 revenue and grant income was negative $0.3 million, including a $1.2 million reversal of previously recognized revenue from a cumulative catch-up adjustment tied to changed assumptions on certain milestone payments. First half 2026 revenue and grant income was $2.8 million. Second quarter operating expenses were $30.0 million, operating loss was $30.3 million, and net loss was $23.8 million, or $0.11 per share. Total liquidity was $419.3 million at June 30, 2026 ($24.3 million cash plus $395.0 million available-for-sale securities), up from $336.5 million at December 31, 2025. Capital expenditures were $6.3 million in the quarter, mainly for the continuous electrolyte production pilot line.

Strategy

The company's stated priority is commercializing its electrolyte through a continuous manufacturing pilot line, with equipment acceptance testing targeted for the third quarter of 2026 and plant validation and operational startup planned for the fourth quarter of 2026. It completed a Stage 1 ISO 9001 audit in the second quarter and has Stage 2 scheduled for the third quarter. It is advancing discussions with partners about a potential joint venture for commercial-scale electrolyte production in the Republic of Korea. It completed the Line Installation Agreement with SK On and received the associated milestone payment, and is negotiating a new collaboration agreement. Management says it remains on track to keep cash investments within its 2026 guidance range of $85 million to $100 million.

Risks

• No commercial market yet — The 10-K states there is currently no commercial market for sulfide-based solid electrolytes and one may never emerge, and the company has not agreed with partners on economic terms for commercial electrolyte sales or licensing.
• Revenue recognition estimates — Collaborative revenue is recognized using cost-to-cost estimates and judgment; the second quarter 2026 $1.2 million cumulative catch-up reversal shows changes in milestone assumptions can reverse previously recognized revenue.
• Development and scale-up execution — The company describes developing sulfide electrolyte capable of production at volume with acceptable performance, yields and costs as challenging, and its continuous pilot line startup is targeted for the fourth quarter of 2026.
• Persistent losses and cash use — Net loss was $93.4 million in 2025 and $23.8 million in second quarter 2026 alone, with operating cash outflow of $73.4 million in 2025 and 2026 cash investment guidance of $85 million to $100 million.

Outlook

Management says it is on schedule to complete equipment acceptance testing of the continuous manufacturing pilot line in the third quarter of 2026 and to start plant validation and operations in the fourth quarter of 2026. It targets ISO 9001 Stage 2 certification in the third quarter and continues negotiations for a new SK On collaboration agreement and a potential Korean joint venture for commercial-scale electrolyte production. The company reiterates 2026 cash investment guidance of $85 million to $100 million and describes its liquidity position as strong.