10-K: Solid Power Advances Battery Tech, Secures DOE Grant

Solid Power, a leader in solid-state battery technology, reported an 8% increase in revenue for 2025, driven by strategic partnerships and a significant DOE grant, while continuing to invest heavily in R&D.

Summary

• Solid Power, Inc. is a U.S.-based company developing sulfide-based solid electrolyte material for solid-state batteries, primarily targeting the EV market.
• The company's commercialization strategy focuses on manufacturing and selling electrolyte to Tier 1 battery manufacturers and automotive OEMs, and licensing its cell manufacturing processes and designs.
• Total revenue and grant income increased by 8% to $21.747 million in 2025, up from $20.139 million in 2024.
• Operating loss improved to $(100.832) million in 2025 from $(105.333) million in 2024.
• Net loss attributable to common stockholders was $(93.410) million in 2025, an improvement from $(96.520) million in 2024.
• Total liquidity, including cash and available-for-sale securities, increased to $336.450 million as of December 31, 2025, from $327.470 million in 2024.
• Secured a U.S. Department of Energy (DOE) grant of up to $50 million under the Bipartisan Infrastructure Law to install a continuous manufacturing process for sulfide-based solid electrolyte materials.
• Entered into a Joint Evaluation Agreement with Samsung SDI and BMW AG in October 2025 to develop and validate a demonstration vehicle powered by all-solid-state battery technology.
• Continued execution on agreements with SK On, including a research and development technology license, line installation, and electrolyte supply agreement, nearing completion of site acceptance testing for the SK On Line.
• Raised net proceeds of $88.8 million through an at-the-market (ATM) offering program in 2025.
• As of February 1, 2026, the company employed approximately 230 employees.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a neutral to slightly positive report, reflecting expected progress in R&D and partnerships, coupled with successful capital raises, but tempered by ongoing significant losses, inherent development risks, and external regulatory uncertainties.

Positives

• Total revenue and grant income increased by 8% year-over-year, reaching $21.747 million in 2025.
• Operating loss improved to $(100.832) million in 2025 from $(105.333) million in 2024, and net loss improved to $(93.410) million from $(96.520) million.
• Total liquidity, including cash and available-for-sale securities, increased to $336.450 million as of December 31, 2025.
• Secured a U.S. Department of Energy (DOE) grant of up to $50 million for the installation of a continuous manufacturing process for sulfide-based solid electrolyte materials.
• Entered into a Joint Evaluation Agreement with Samsung SDI and BMW AG in October 2025 to progress all-solid-state battery development.
• Completed factory acceptance testing and neared completion of site acceptance testing for the SK On Line, demonstrating progress in technology deployment with a key partner.
• BMW Group introduced an i7 test vehicle featuring Solid Power's cells and solid-state battery technology in May 2025, a significant achievement in the partnership.
• Successfully raised $88.8 million in net proceeds through an at-the-market (ATM) offering program in 2025, enhancing liquidity.
• The company believes it is the only entity with both pilot-scale sulfide electrolyte manufacturing and pilot-scale solid-state cell manufacturing capabilities, providing a competitive advantage.

Negatives

• The company incurred significant operating losses of $(100.832) million in 2025 and has an accumulated deficit of $(274.904) million, with expectations of continued losses for the foreseeable future.
• Cash used in operating activities increased by $9.5 million in 2025 compared to 2024, primarily due to a decrease in cash received from partners.
• Interest income decreased by $4.5 million in 2025 due to a reduction in the average available-for-sale securities balance.
• The Joint Development Agreement (JDA) with Ford Motor Company is expected to expire by its terms on March 31, 2026, indicating a potential winding down of direct cell development activities with Ford.
• The U.S. Department of Energy grant funding could be delayed or canceled due to an executive order pausing Bipartisan Infrastructure Law funds.
• Certain EV incentives were eliminated on September 30, 2025, under the One Big Beautiful Bill Act (OBBBA), which could adversely impact demand for EV technology.
• The company has not yet reached agreement with partners on economic terms for the commercial sale of electrolyte or licensing of cell technology, leading to revenue uncertainty.
• Preliminary safety testing on cells has been conducted, but additional extensive safety testing is required, and past issues like thermal runaway in late 2023/early 2024 cells have been identified, though the root cause is being addressed.

Risks

• The pace of battery technology development is unpredictable, and delays or failures in development objectives may postpone or prevent revenue generation.
• There is currently no commercial market for sulfide-based solid electrolytes, and one may never emerge; even if adopted, the company may not effectively compete.
• Developing sulfide-based solid electrolyte capable of production at volume with acceptable performance, yields, and costs is challenging.
• Failure to agree on economic terms for commercial sale of electrolyte or licensing of cell technology with partners creates revenue uncertainty.
• Inability to successfully commercially license cell technology to OEMs or cell manufacturers or generate material revenue from it.
• Extensive safety testing is required for cells using the company's technology before installation in EVs, and past issues like thermal runaway have occurred.
• Inability to attract and retain key employees and qualified personnel could harm competitiveness.
• Non-exclusive agreements expose the company to partners pursuing other battery cell technologies or partners.
• Dependence on a limited number of joint development agreements means inability to control the pace and timing of partners' efforts.
• Failure to meet milestones or requirements under agreements could lead to termination of partnerships.
• Challenges in managing relationships with existing and future partners, customers, suppliers, and contractors.
• Partners may share in intellectual property developed, potentially limiting the company's ability to share developments with other partners or exploit IP for its sole benefit.
• Risks related to the construction of facilities for research and development and long-term electrolyte production, including cost overruns and delays.
• The battery market is highly competitive, and the company may not succeed in competing or maintaining confidence among partners and customers.
• Inability to accurately estimate future demand for technology could lead to inefficiencies and delays.
• Reliance on owned and exclusively-licensed intellectual property, with risks of unauthorized use, infringement claims, and challenges in obtaining/maintaining patent rights.
• The business plan is untested, and success in executing strategic plans, including commercialization, is not guaranteed.
• Expectation of incurring significant expenses and continuing losses for the foreseeable future.
• Potential need for additional capital that might not be available on commercially reasonable terms or at all.
• Inability to adequately control costs associated with operations and components.
• Risks from a disruption or failure of information technology infrastructure, data security breaches, or failure to comply with privacy laws.
• Risks associated with artificial intelligence and machine learning technologies, including data sourcing, design flaws, security threats, and intellectual property protection challenges.
• Changes in tax laws or regulations, adverse interpretations, or expanded business operations could impact the effective tax rate and liability.
• Maintenance of cash deposits in excess of federally insured limits poses a risk if financial institutions fail.
• Subject to lawsuits, regulatory actions, or government investigations, including a putative class action against former DCRC officers/directors, which could lead to significant costs or harm reputation.
• Substantial regulation under international, federal, state, and local laws, with changes or non-compliance potentially having a material adverse effect.
• Price volatility of common stock and warrants due to various factors, including delays, market valuations, management changes, and future sales.
• Issuance of additional shares under equity plans or preferred stock could dilute existing stockholders.
• Delaware law and company charter/bylaws provisions might delay, discourage, or prevent a change in control or management.
• Warrants may not ever be 'in the money' and could expire worthless.
• Terms of warrants may be amended adversely to holders with sufficient approval.

Future Outlook

Solid Power expects to continue strengthening partner relationships, commission its continuous electrolyte production line by the end of 2026 to expand annual capacity to 75 metric tons and lower costs, and pursue a potential partnership for commercial-scale electrolyte production in the Republic of Korea with a target of up to 500 metric tons annually. The company plans to promote electrolyte product competitiveness through its Electrolyte Innovation Center and maintain fiscal discipline while investing in technology development.

Management Comments

• We believe our electrolyte technology has the potential to enable a step-change improvement in battery cell performance beyond what is currently achievable in conventional lithium-ion battery cells, including improved energy density, battery life, and safety performance.
• We believe we are the only entity with both pilot-scale sulfide electrolyte manufacturing and pilot-scale solid-state cell manufacturing capabilities, which positions us to utilize feedback from our internal cell development team as well as feedback from customers and other external parties to improve our electrolyte products.
• We believe Tier 1 battery manufacturers and OEMs are coalescing around sulfide solid-state batteries as the preferred solid state cell architecture of the future and view our continued sampling activities as a validation of our intended business model.
• We believe maintaining and using our strong balance sheet to best position Solid Power to reach commercialization are critical for our success.
• We expect cash used in operating activities to decrease in 2026 as a result of decreased direct payments following completion of site acceptance testing under the line installation agreement.

Industry Context

StockSavvy.ai notes that Solid Power operates in a rapidly evolving and highly competitive battery market, with increasing global adoption of EVs driving demand for next-generation battery technology. The company's focus on sulfide-based solid electrolytes positions it within a segment that many OEMs and battery manufacturers are reportedly coalescing around. The emergence of government-backed initiatives like China's CASIP highlights the intense global competition and significant investments in solid-state battery development, underscoring the need for Solid Power to maintain its technological edge and secure commercial agreements. The elimination of certain EV incentives and potential delays in government funding also reflect a dynamic regulatory landscape that could impact market demand and the company's financial resources.

Comparison to Industry Standards

• Solid Power believes its sulfide-based solid electrolytes offer a superior balance of conductivity and processability compared to other solid electrolyte classes, aiming for improved energy density, battery life, and safety over traditional lithium-ion batteries.
• The company distinguishes itself from competitors by focusing on electrolyte manufacturing and licensing cell designs, rather than becoming a commercial battery manufacturer, which it expects will result in significantly lower capital requirements than cell manufacturers like CATL, LG Energy Solution, or Panasonic.
• Solid Power's partnerships with major automotive OEMs and battery manufacturers such as BMW, Samsung SDI, and SK On are critical for validating its technology and accelerating development, contrasting with smaller startups that may lack such established industry ties.
• The company's pilot-scale sulfide electrolyte and solid-state cell manufacturing capabilities are presented as unique, providing an advantage over electrolyte producers without cell competencies.
• The company faces competition from established lithium-ion battery manufacturers (e.g., LG Energy Solution, Samsung SDI's traditional battery divisions, CATL) who continue to reduce costs and expand supply, as well as other solid-state battery developers (e.g., QuantumScape, Toyota, Factorial Energy).

Management Changes

Corporate Governance

Legal Proceedings

• On December 3, 2024, a putative class action was filed against former officers and directors of Decarbonization Plus Acquisition Corporation III (DCRC), including Erik Anderson, Riverstone Holdings, LLC, and related sponsors/entities (the Hamilton Defendants).
• The lawsuit alleges breach of fiduciary duties and unjust enrichment arising from the merger of Solid Power Operating, Inc. with a DCRC subsidiary, seeking unspecified damages and equitable relief.
• Solid Power, its subsidiaries, and current officers/directors (except Mr. Anderson) are not named as defendants.
• The Hamilton Defendants have demanded indemnification and advancement of defense costs from Solid Power.
• Solid Power cannot currently estimate a reasonably possible loss from this proceeding.

Related Party Transactions

• BMW of North America LLC: Long-standing partner, amended JDA in 2022 for R&D-only license to IP, paid $20 million between December 2022 and June 2024. BMW Holding B.V. (an affiliate) is a beneficial owner of more than 5% of common stock and has board nomination rights.
• Ford Motor Company: JDA partner, was a beneficial owner of more than 5% of common stock as of February 9, 2024. JDA expected to expire March 31, 2026.
• Dahae Energy Co., Ltd.: Strategic partner in Republic of Korea. Solid Power acquired a 20% equity interest for $656 thousand in October 2024. Dahae provides process engineering support and is the installer for the SK On Line.
• Solid Power extinguished an existing promissory note from Dahae in exchange for a Bond with a par value of $4.448 million, detachable warrants (to purchase an additional 20% equity in Dahae), and a bifurcated embedded derivative.
• Solid Power provided a term loan facility to Dahae with a principal balance of $1.161 million.
• Solid Power committed to provide up to $2.0 million of additional financing to Dahae.
• Solid Power granted 298,508 shares of restricted stock to Dahae executives in October 2024, vesting over four years, recorded in Mezzanine Equity.
• Solid Power incurred $12.461 million in costs for process engineering support from Dahae in 2025 ($9.342 million in 2024).

Stakeholder Impact

• Shareholders: Potential for dilution from future equity raises (ATM, Registered Direct Offering), volatility in stock price, and impact from ongoing losses. The classified board and anti-takeover provisions may limit shareholder influence on corporate control. The putative class action against former DCRC officers could lead to costs for Solid Power, potentially impacting shareholder value.
• Employees: Compensation includes competitive salaries, benefits, and a robust equity compensation plan. The company's success in attracting and retaining key personnel is crucial for technology development.
• Customers (OEMs, Tier 1 battery manufacturers): Continued electrolyte sampling and partnerships (BMW, Samsung SDI, SK On) are critical for future commercialization and product adoption. Delays in technology development or inability to meet performance requirements could impact customer relationships.
• Suppliers: Reliance on third-party suppliers for key materials (Li2S, NMC, silicon) and equipment, with risks related to timely availability, quality, consistency, and price increases.
• Creditors: The company's financial health and ability to generate future revenue will impact its creditworthiness. The loan receivable from Dahae is collateralized by Dahae's assets and a minority equity interest.
• Regulatory Authorities: Subject to various international, federal, state, and local regulations, including environmental, trade, and anti-corruption laws. Compliance is costly, and changes in regulations or non-compliance could lead to penalties.

Next Steps

• Continue providing Samsung SDI with electrolyte under the Joint Evaluation Agreement in 2026.
• Continue developing technology and pursuing electrolyte innovation to meet Samsung SDI's technical requirements and expectations.
• Complete site acceptance testing of the SK On Line in the first quarter of 2026.
• Work with SK On to conduct validation activities under the SK On R&D license.
• Begin delivering electrolyte to SK On under the electrolyte supply agreement in 2026.
• Commission the continuous electrolyte production line by the end of 2026, expanding annual capacity to up to 75 metric tons.
• Pursue a potential partnership for commercial-scale electrolyte production in the Republic of Korea, targeting up to 500 metric tons annually.
• Focus on enhancing understanding of key metrics for competitive electrolyte and enabling customer success.
• Utilize the Electrolyte Innovation Center (EIC) to develop, improve, and test electrolyte manufacturing processes and products.
• Continue focusing cell research and development activities on improving understanding of electrolyte performance.
• Maintain fiscal discipline and invest appropriately in technology development and process improvements in 2026.
• Aim to pursue opportunities to supply Ford with electrolyte material following the expected expiration of the JDA on March 31, 2026.

Key Dates

Recommendation

Solid Power is an R&D stage company with promising technology in the solid-state battery space, evidenced by strategic partnerships with major automotive and battery players like BMW, Samsung SDI, and SK On, and significant government grant funding. The recent capital raises (ATM and Registered Direct Offering) provide a strong liquidity position to fund ongoing development and planned production scale-up. However, the company continues to incur substantial operating losses and has an accumulated deficit, with commercialization still several years away and subject to numerous technical, market, and regulatory risks. The expiration of the Ford JDA and uncertainties surrounding DOE funding and EV incentives add to the cautious outlook. A "hold" recommendation reflects the long-term potential of its technology and strong partnerships, balanced against the significant execution risks, competitive landscape, and continued unprofitability inherent in its current development stage. Investors should monitor progress on commercialization milestones and financial performance closely.

Keywords

Solid-state battery, Sulfide electrolyte, EV battery technology, Battery manufacturing, SEC 10-K, Financial results, Corporate governance, Risk factors, Strategic partnerships, DOE grant, Samsung SDI, BMW AG, SK On, Ford Motor Company, Intellectual property, Capital raise, Warrants, SLDP, SLDPW