Solid Power's Q3 2025: Contradictions Emerge on BMW-Samsung SDI Partnership, Revenue Outlook, and Strategic Focus

Date of Call: None provided

Financials Results

• Revenue: $4.6M in Q3 2025, down from $7.5M in Q2 2025; YTD revenue $18.1M, up $2.4M versus YTD 2024
• EPS: Net loss of $66.4M year-to-date, or $0.37 per share (YTD)

Guidance:

• Expected cash investment for 2025 revised to $85–$95M.
• SK On pilot line on target for completion by end of 2025 (site acceptance testing underway).
• Detailed design for continuous sulfide electrolyte pilot line at SB2 expected substantially complete later this year; commissioning on track for 2026.

Business Commentary:

• Strategic Partnership and Technology Adoption:
• Solid Power announced a strategic collaboration with Samsung SDI and BMW, with a joint evaluation agreement for sulfide-based solid electrolyte supply.

• The collaboration aims to develop and supply all solid-state battery cells for next-generation evaluation vehicles, highlighting confidence in Solid Power's technology.

• Revenue and Financial Performance:

• Revenue for Q3 2025 was $4.6 million, a decrease from $7.5 million in Q2 but an increase of $2.4 million year-to-date compared to 2024.
• The revenue decline in Q3 was primarily due to the nature of work performed under the SK On agreement, which was labor-focused for site acceptance testing, compared to the second quarter's significant equipment purchases.

• Operating Expenses and Cash Investment:
• Operating expenses decreased to $29 million in Q3, down $4.4 million from Q2's $33.4 million, primarily due to reduced spending on equipment purchases.

• The company revised its expected cash investment for 2025 to $85-$95 million, reflecting efforts to realize efficiencies and reduce operating costs.

• Liquidity and Fundraising:

• Total liquidity increased to $300.4 million as of September 30, 2025, driven by proceeds from the at-the-market offering program and cash received from government contracts.
• The increase in liquidity supports Solid Power's technology development and innovation initiatives, despite a cash investment of $61.2 million year-to-date.
  

  Sentiment Analysis:

  Overall Tone: Neutral

  • Management emphasized a strategic collaboration with Samsung SDI and BMW and progress on SK On pilot line, while reporting Q3 revenue declined to $4.6M from $7.5M sequentially and a YTD net loss of $66.4M; liquidity rose to $300.4M and cash investment guidance was revised to $85–$95M.

Contradiction Point 1

Partnership and Collaboration with BMW

It impacts the company's strategic partnerships and the timeline for the integration of its technology into BMW vehicles, which could affect investor expectations and market positioning.

Can you provide an update on the collaboration with Samsung SDI and BMW? - Charlie Van Goetz, Investor Relations

2025Q3: We recently announced a strategic collaboration with Samsung SDI and BMW under a joint evaluation agreement. This partnership represents a vote of confidence in our technology and the potential of solid-state batteries. - John Van Scoter(CEO)

Updates on operational goals and partnerships? - John Van Scoter(Solid Power)

2025Q2: We are excited to continue our collaboration with BMW, and we recently shared that one of their i7 test vehicles was introduced using our cells and solid-state technology. - John Van Scoter(CEO)

Contradiction Point 2

Revenue Expectations and Trajectory

It involves changes in revenue forecasts, which are crucial indicators for investors and shareholders.

What’s the latest update on the DOE loan? - Chris Pierce(Needham)

2025Q3: Sampling is increasing due to early-stage cell development by customers, with significant revenue potential anticipated, though not substantial yet. Major revenue growth expected around 2030. - John Van Scoter(CEO)

Could you provide guidance on 2025 revenue expectations, including projected growth from electrolyte customers and revenue per vehicle? - Chris Pierce(Needham)

2025Q1: '25 revenue is dominated by collaborative arrangements, notably with SK On and government contracts, and electrolyte sampling at a much lower level. There is an increase in repeat sampling, suggesting traction with customers. - Linda Heller(CFO)

Contradiction Point 3

Earnings and Financial Performance

It involves changes in financial performance and expectations, which are critical indicators for investors and could impact stock valuation.

[Question] - [Questioner's Name]([Questioner's Company])

2025Q3: In summary, we generated $7.5 million revenue in Q2 2025, bringing year-to-date revenue to $13.5 million. Revenue recognized this quarter was primarily driven by the achievement of the factory acceptance testing milestone under our line installation agreement with SK On. - Linda Heller(CFO)

Can you provide an update on your financial results and progress toward financial discipline goals? - John Van Scoter(Solid Power)

2025Q2: We generated revenue of $7.5 million in Q2 2025, bringing year-to-date revenue to $13.5 million. Revenue recognized this quarter was driven primarily by the achievement of the factory acceptance testing milestone under our line installation agreement with SK On. - Linda Heller(CFO)

Contradiction Point 4

Strategic Collaboration Focus

It highlights a shift in focus and strategy regarding partnerships, which are crucial for business growth and market positioning.

Can you provide an update on the strategic collaboration with Samsung SDI and BMW? - Charlie Van Goetz (Investor Relations)

2025Q3: We recently announced a strategic collaboration with Samsung SDI and BMW under a joint evaluation agreement. This partnership represents a vote of confidence in our technology and the potential of solid-state batteries. - John Van Scoter(CEO)

What are the key factors to watch for in 2025? Is it new partnerships on electrolyte? Is it increased collaboration with existing partners and larger sample sizes? - Chris Pierce (Needham)

2024Q4: Our core business has always been electrolyte-focused, and in 2025, we'll focus more on optimizing electrolytes for better cell performance, driven by increased interest in sulfide solid state batteries. - John Van Scoter(CEO)

Contradiction Point 5

Strategic Collaboration with Samsung SDI and BMW

It involves a shift in the strategic collaboration details, which could impact expectations about partnerships and the company's market penetration.

Are there any updates on the strategic collaboration with Samsung SDI and BMW? - Charlie Van Goetz, Investor Relations

2025Q3: We recently announced a strategic collaboration with Samsung SDI and BMW under a joint evaluation agreement. This partnership represents a vote of confidence in our technology and the potential of solid-state batteries. - John Van Scoter(CEO)

How should we view revenue trajectory beyond 2025? - Chris Pierce(Needham)

2025Q1: In Q1, we accelerated our manufacturing capacity expansion projects and executed our first customer cell development project with SK On. As part of this project, we shipped our first production-scale cells to SK On for performance evaluation. - John Van Scoter(CEO)