[Q2 2025 Performance Overview](index=1&type=section&id=Q2%202025%20Performance%20Overview) Solid Power achieved key operational milestones and reported increased revenue in Q2 2025, despite rising operating expenses [Recent Business Highlights](index=1&type=section&id=Recent%20Business%20Highlights) Solid Power achieved key operational milestones in Q2 2025, including a BMW i7 test vehicle powered by its cells, completion of SK On pilot line factory acceptance testing, and progress on its continuous electrolyte production pilot line, while maintaining fiscal discipline - **BMW Group** introduced an **i7 test vehicle** powered by Solid Power's cells and solid-state battery technology[6](index=6&type=chunk) - Completed **factory acceptance testing for the SK On pilot cell line** and began working towards site acceptance testing, which remains on target for later this year[6](index=6&type=chunk) - Detailed design work is in process for the planned installation of the **continuous electrolyte production pilot line**, with long-lead equipment ordered and commissioning on track for 2026[6](index=6&type=chunk) - **Continued demand for multiple generations of electrolyte** from both existing and new customers, with active sampling to key strategic customers[6](index=6&type=chunk) - Remained **fiscally disciplined** and continued to identify opportunities to realize efficiencies and reduce operating costs while driving innovation[6](index=6&type=chunk) [Second Quarter 2025 Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) Solid Power reported increased revenue in Q2 2025, primarily driven by a milestone achievement with SK On, though operating expenses also rose, leading to a year-to-date net loss of $40.5 million Q2 2025 Financial Highlights | Metric | Q2 2025 (Millions) | Q1 2025 (Millions) | Change (QoQ) | | :--------------------- | :----------------- | :----------------- | :------------- | | Revenue & Grant Income | $7.5 | $6.0 | +$1.5 (+25%) | | Operating Expenses | $33.4 | $30.0 | +$3.4 (+11.3%) | - First half of 2025 revenue recognized totaled **$13.5 million**[4](index=4&type=chunk) - Second quarter 2025 revenue was primarily driven by achievement of **factory acceptance testing milestone under the line installation agreement with SK On Co., Ltd.**[4](index=4&type=chunk) - Year-to-date 2025 **operating loss was $49.9 million** and year-to-date **net loss was $40.5 million**, or $0.22 per share[5](index=5&type=chunk) [Balance Sheet and Liquidity](index=2&type=section&id=Balance%20Sheet%20and%20Liquidity) Solid Power maintained a strong liquidity position as of June 30, 2025, despite significant cash usage for operations and capital expenditures [Balance Sheet and Liquidity Overview](index=2&type=section&id=Balance%20Sheet%20and%20Liquidity%20Overview) Solid Power maintained a strong liquidity position as of June 30, 2025, with total liquidity at $279.8 million, despite significant cash usage in operating activities and capital expenditures for its pilot line Liquidity Position (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Cash and cash equivalents | $26,248 | $25,413 | | Available-for-sale securities | $253,561 | $302,057 | | Total liquidity | $279,809 | $327,470 | - As of June 30, 2025, **contract receivables were $4.6 million** and **total current liabilities were $12.4 million**[7](index=7&type=chunk) Capital Expenditures and Cash Usage (in millions) | Metric | Q2 2025 | H1 2025 | | :-------------------------------------- | :------ | :------ | | Capital Expenditures | $2.6 | $5.0 | | Cash used in operating activities (YTD) | N/A | $40.7 | - Capital expenditures primarily represented costs for construction of the **continuous electrolyte production pilot line**[8](index=8&type=chunk) [2025 Outlook and Strategic Objectives](index=2&type=section&id=2025%20Outlook) Solid Power reiterated its key strategic objectives for 2025, focusing on electrolyte innovation, partner commitments, and financial discipline [Key Objectives for 2025](index=2&type=section&id=Key%20Objectives%20for%202025) Solid Power reiterated its commitment to key objectives for 2025, focusing on advancing electrolyte technology, fulfilling partner commitments, and maintaining financial discipline - Drive **electrolyte innovation and performance** through feedback from customers and internal cell development[12](index=12&type=chunk) - Continue to execute on the electrolyte technology development roadmap, including the start of the installation of a **pilot continuous electrolyte manufacturing line**[12](index=12&type=chunk) - **Fulfill partner and customer commitments** and **increase electrolyte sampling**, using the electrolyte innovation center (EIC) to quickly innovate driven by demand[12](index=12&type=chunk) - **Maintain financial discipline** while ensuring ongoing investments in technology development and capabilities[12](index=12&type=chunk) [About Solid Power, Inc.](index=2&type=section&id=About%20Solid%20Power%2C%20Inc.) Solid Power is a leading developer of solid-state battery technology, focusing on electrolyte material and a licensing-based business model [Company Profile and Business Model](index=2&type=section&id=Company%20Profile%20and%20Business%20Model) Solid Power is a leading developer of solid-state battery technology, focusing on its electrolyte material to enable next-generation batteries for EVs and other markets, with a business model centered on selling electrolyte and licensing designs rather than manufacturing commercial batteries - Solid Power develops **solid-state battery technology** for EV and other markets, with its core technology being its **electrolyte material**[11](index=11&type=chunk) - The electrolyte material is believed to enable **extended driving range, longer battery life, improved safety, and lower cost** compared to traditional lithium-ion batteries[11](index=11&type=chunk) - Solid Power's business model involves **selling its electrolyte to cell manufacturers and licensing its cell designs** and manufacturing processes, distinguishing it from competitors planning to be commercial battery manufacturers[11](index=11&type=chunk) [Condensed Consolidated Financial Statements](index=4&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the condensed consolidated balance sheets, statements of operations, and cash flows for Solid Power [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet shows a decrease in total assets from $448.25 million at December 31, 2024, to $397.995 million at June 30, 2025, primarily due to a reduction in long-term investments, while current assets increased Key Balance Sheet Items (in thousands) | Metric | June 30, 2025 | December 31, 2024 | Change | | :-------------------------- | :------------ | :---------------- | :--------- | | Total Assets | $397,995 | $448,250 | $(50,255) | | Total Current Assets | $239,672 | $125,236 | $114,436 | | Total Long-Term Assets | $158,323 | $323,014 | $(164,691) | | Total Liabilities | $27,224 | $37,936 | $(10,712) | | Total Stockholders' Equity | $370,631 | $410,280 | $(39,649) | - **Marketable securities significantly increased** from $92.784 million to $204.685 million, while **investments decreased** from $210.400 million to $50.710 million[16](index=16&type=chunk) - **Total current liabilities decreased from $19.970 million to $12.399 million**, driven by reductions in accounts payable, deferred revenue, and accrued compensation[16](index=16&type=chunk) [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) For Q2 2025, Solid Power reported an increase in total revenue and grant income to $7.54 million (up from $5.075 million in Q2 2024), but also an increase in operating expenses, resulting in a net loss of $25.338 million, or $0.14 per share Key Income Statement Items (in thousands) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :------------------------------------------- | :--------- | :--------- | :--------- | :--------- | | Total Revenue and Grant Income | $7,540 | $5,075 | $13,556 | $11,028 | | Total Operating Expenses | $33,411 | $32,012 | $63,455 | $63,746 | | Operating Loss | $(25,871) | $(26,937) | $(49,899) | $(52,718) | | Total Nonoperating Income and Expense | $(137) | $5,174 | $8,811 | $9,748 | | Net Loss Attributable to Common Stockholders | $(25,338) | $(22,274) | $(40,488) | $(43,481) | | Basic and diluted loss per share | $(0.14) | $(0.13) | $(0.22) | $(0.24) | - Revenue increased by **27.8% year-over-year** in Q2 2025, from **$5.075 million to $6.485 million**, and grant income of **$1.055 million** was recognized, compared to none in Q2 2024[17](index=17&type=chunk) - **Research and development expenses remained relatively stable** year-over-year for both Q2 and H1 2025, while **selling, general and administrative expenses decreased**[17](index=17&type=chunk) - The change in fair value of warrant liabilities significantly impacted nonoperating income, moving from a gain of **$703 thousand** in Q2 2024 to a loss of **$3.216 million** in Q2 2025[17](index=17&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the first six months of 2025, Solid Power used $40.734 million in operating activities, a slight increase from the prior year, while investing activities provided $45.073 million, primarily due to proceeds from sales of available-for-sale securities Cash Flow Summary (Six Months Ended June 30, in thousands) | Cash Flow Activity | H1 2025 | H1 2024 | Change | | :-------------------------------------- | :--------- | :--------- | :--------- | | Net cash used in operating activities | $(40,734) | $(40,179) | $(555) | | Net cash provided by investing activities | $45,073 | $44,811 | $262 |\ | Net cash used in financing activities | $(3,504) | $(8,531) | $5,027 | | Net increase (decrease) in cash | $835 | $(3,899) | $4,734 | | Cash and cash equivalents at end of period | $26,248 | $30,638 | $(4,390) | - Purchases of available-for-sale securities were **$101.690 million**, offset by proceeds from sales of **$152.453 million** in H1 2025[19](index=19&type=chunk) - Net cash used in financing activities decreased significantly from **$8.531 million** in H1 2024 to **$3.504 million** in H1 2025, largely due to reduced repurchase of common stock[19](index=19&type=chunk) [Additional Information](index=3&type=section&id=Additional%20Information) This section provides important disclosures regarding forward-looking statements and company contact information [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) The report contains forward-looking statements regarding future financial performance, strategy, expansion plans, and market opportunities, which are subject to numerous risks and uncertainties detailed in SEC filings - Statements about **future financial performance, strategy, expansion plans** (including electrolyte production), **market opportunity, operations, and projected costs** are considered forward-looking[13](index=13&type=chunk) - Readers are cautioned against undue reliance on these statements, as they are subject to **risks and uncertainties**, many beyond Solid Power's control, including R&D success, financial losses, partnership management, market adoption, and intellectual property protection[13](index=13&type=chunk) - Additional risks are detailed in Solid Power's **Annual Report on Form 10-K** for the year ended December 31, 2024, and **other SEC filings**[13](index=13&type=chunk) [Contacts](index=3&type=section&id=Contacts) Provides contact information for investor relations and press inquiries - Investor inquiries can be directed to **investors@solidpowerbattery.com**[14](index=14&type=chunk) - Press inquiries can be directed to **press@solidpowerbattery.com**[14](index=14&type=chunk)

Core Insights - Lithium metal anode technology is expected to be a long-term evolution direction for anode side applications, with a market potential of 12-36 billion yuan by 2030, corresponding to a lithium metal demand of 961 to 2884 tons based on a 20μm lithium metal coating [1] Application Side - Domestic leading battery manufacturers are closely following overseas companies, with mass production timelines for all-solid-state batteries generally set for 2027-2028. Notable companies like Solid Power and Factorial Energy have confirmed the use of lithium metal anodes for their next-generation solid-state batteries, while domestic players such as CATL and Qingtao Energy are leading in technology layout [2] Industry Chain - The lithium industry is driven by upstream lithium companies, with a focus on high-purity, low-cost, and safe lithium metal ingot/foil production capabilities. Companies like Ganfeng Lithium and Tianneng Technology are leading in lithium metal rolling processes. Midstream anode material manufacturers are expanding into lithium metal anodes, leveraging their deep understanding of material development and battery applications. Foil manufacturers are extending their expertise in high-performance copper foil to lithium metal deposition and composite current collectors, with Yinglian Co. expected to play a key role in developing new deposition processes and structures [3] Technical Path - Rolling methods for lithium foil production are currently the most mature, while vapor deposition methods show superior performance and industrial feasibility. The rolling method produces lithium foil with a thickness of approximately 20-50μm, while vapor deposition can theoretically achieve thicknesses below 10μm, although it requires significant initial investment and is still in the experimental phase [4]

Core Viewpoint - The lithium battery equipment industry is gradually emerging from its bottom phase, with solid-state batteries expected to achieve commercial application by 2027, leading the equipment sector [1] Group 1: Industry Trends - Since September 2024, the operating rates of leading domestic battery manufacturers have shown improvement [1] - From 2025 onwards, leading lithium battery equipment companies continue to receive overseas orders, with significant domestic recovery expected, leading to potential upward adjustments for the entire year [1] Group 2: Solid-State Battery Developments - Recent catalysts for solid-state batteries include successful technological advancements by overseas companies such as Quantum Scape and Solid Power, which have seen their stock prices reach new highs, attracting significant attention from the capital market [1] - The release of the "Solid-State Battery Determination Method" in May 2025 has established industry standards, while the revised safety requirements for electric vehicle batteries have strengthened safety protocols, laying a solid foundation for the development of the solid-state battery industry [1] Group 3: Investment Opportunities - The gradual establishment of pilot lines for solid-state batteries by leading manufacturers and the mid-term acceptance of the solid-state battery special project by the Ministry of Industry and Information Technology indicate that the solid-state battery equipment industry is likely to benefit first [1] - Companies to watch include Xianlead Intelligent (300450), Xianhui Technology, and Haimeixing, as well as Eastway Technology and Jiao Cheng Ultrasonic, which focus on composite current collector equipment [1]

Stock Recommendations & Analysis - Granite Construction (GVA) is viewed as a potential takeover target and experienced a 7% increase [1] - Solid Power stock has increased by 100%, suggesting investors should consider taking some profit [3] - ENVX is considered overvalued and a potentially risky "parabolic buy" [4] - General Mills is considered a buy for its 5% dividend yield, but not necessarily for its earnings potential due to challenges related to GOP-1s [5][6] - Starbucks is recommended as a buy while the stock is down [7] Investment Strategy & Market Commentary - The infrastructure play is still considered viable [2] - Momentum in a stock, such as Solid Power, may warrant taking profits [3] - Parabolic stock increases are often followed by parabolic declines [4] - Lithium is being compared to oil in terms of importance [4] Miscellaneous - The show has doubters who are not paying attention [7] - A club membership has paid for itself [6]

Group 1 - The Ministry of Industry and Information Technology, along with five other departments, issued a notice on July 7, 2025, to enhance server efficiency and actively utilize energy storage technology in green data center construction [1] - Solid Power's sulfide solid-state battery has achieved an energy density of 390Wh/kg, while QuantumScape's QSE-5 cell has reached 301Wh/kg with a 10C discharge capability [1] - Factorial Energy's Solstice battery offers a single range of 1000 kilometers, and FEST battery supports fast charging in 18 minutes [1] Group 2 - Samsung SDI's silver-carbon anode battery has an energy density of 900Wh/L and can achieve fast charging in 9 minutes [1] - Many overseas solid-state battery companies are focusing on sulfide technology and have entered vehicle testing or sample delivery phases, with mass production timelines set for 2026-2030 [1] - Collaborations between battery manufacturers and automotive companies are deepening, covering technology licensing, production line co-construction, and road testing validation [1] Group 3 - Solid Power's battery has been tested in real vehicle trials with BMW i7, and QuantumScape has signed a mass production agreement with Volkswagen [1] - Domestic policies are accelerating the industrialization of solid-state batteries, aiming for small-scale vehicle demonstration by 2027 [1] Group 4 - The Mechanical ETF tracks a segmented mechanical index compiled by China Securities Index Co., covering listed companies in engineering machinery and industrial automation sectors in the Shanghai and Shenzhen markets [2] - The index constituents are strictly selected, typically exhibiting high growth potential and industry representation, effectively reflecting the development trends and market performance of China's machinery manufacturing industry [2] - The segmented mechanical index focuses on capturing quality enterprises within the machinery industry, providing investors with an effective tool to track the overall performance of the mechanical sector [2]

Group 1 - The core viewpoint of the article highlights the steady progress in overseas solid-state battery development, with continuous breakthroughs in product performance and a mass production timeline set for 2026-2030 [1][2][3] Group 2 - Overseas solid-state battery companies are focusing on sulfide technology routes, with energy densities ranging from 301-560 Wh/kg for various companies including Solid Power, QuantumScape, Factorial Energy, and Samsung SDI [1][2] - Solid Power's revenue for 2024 is projected at $20.14 million, a 16% year-on-year increase, with R&D expenses of $73.34 million, up 34% year-on-year; QuantumScape has not yet generated revenue but has R&D expenses of $380 million, a 10% increase year-on-year [2] - Solid Power's sulfide solid-state battery has an energy density of 390 Wh/kg, while QuantumScape's QSE-5 cell reaches 301 Wh/kg with a 10C discharge capability; Factorial Energy's Solstice battery offers a range of 1000 km, and Samsung SDI's silver-carbon negative battery achieves 900 Wh/L with a 9-minute fast charge [2] - Collaboration between battery manufacturers and automakers is deepening, with projects covering technology licensing, production line co-construction, and road testing; Solid Power's batteries are being tested in BMW's i7, while QuantumScape has signed a mass production agreement with Volkswagen's PowerCo [3]

Group 1 - The company Solid Power (NASDAQ: SLDP) is viewed positively due to its first-mover advantage in the solid-state battery technology sector [1] - The analyst has a strong background in finance and strategy, with experience in banking, mining, and energy sectors, which supports the analysis of investment opportunities [1] - The investment philosophy emphasizes thorough research and a long-term perspective, focusing on both value stocks and growth opportunities [1] Group 2 - The article does not provide any specific financial data or performance metrics related to Solid Power [2][3]

Core Viewpoint - Solid electrolytes are the core component that differentiates solid-state batteries from traditional liquid batteries, focusing on their technological development and market potential [1][9][17]. Market Overview - The global solid electrolyte market for solid-state batteries is projected to reach $3.31 billion by 2031, with a compound annual growth rate (CAGR) of 101.0% over the coming years [1]. - The top five manufacturers are expected to hold approximately 58.0% of the market share in 2024 [5]. Market Drivers - **Demand from New Energy Vehicles**: The penetration rate of electric vehicles in China is expected to exceed 50%, driven by policies such as vehicle replacement incentives and the EU's ban on fuel vehicles by 2035 [9][15]. - **Energy Storage Industry Growth**: The global demand for energy storage systems is growing at a CAGR of over 30%, with solid-state batteries being favored for their high safety and longevity [10][11]. - **Emerging Fields**: New applications in low-altitude economies, such as eVTOLs, require high energy density and safety, making solid-state batteries the preferred choice [12][13]. - **Policy and Capital Support**: Government initiatives and significant capital inflows are driving the development of solid-state batteries, with China and the EU investing heavily in this technology [14][16]. Future Outlook - The solid electrolyte market is expected to experience explosive growth due to technological breakthroughs, cost reductions, and supportive policies [17]. - Leading companies are likely to dominate the next generation of battery technology through monopolization, industry chain integration, and global expansion [17].

Investment Rating - The report recommends a focus on solid-state battery equipment suppliers, particularly leading companies such as XianDao Intelligent, laser welding equipment manufacturers like LianYing Laser, and formation and capacity equipment suppliers like HangKe Technology [2]. Core Viewpoints - Solid-state batteries possess high energy density and safety, with broad future application scenarios. The transition from liquid to solid-state batteries is expected to enhance energy density significantly, with solid-state batteries projected to achieve energy densities exceeding 500 Wh/kg by 2030 [2][11]. - The dry process for all-solid-state batteries opens new demand for equipment, with significant changes in the production process across all stages, including the elimination of solvents and the introduction of new assembly techniques [2][10]. - Domestic key equipment companies are making strides in solid-state battery production, with several firms already achieving pilot production lines and partnerships for research and development [2][12]. Summary by Sections 1. High Energy Density and Safety of Solid-State Batteries - Solid-state batteries utilize solid electrolytes, offering advantages in energy density and safety compared to traditional liquid batteries. They can achieve energy densities of 300-500 Wh/kg, significantly higher than liquid batteries [11][12]. - The solid-state design eliminates risks associated with liquid electrolyte leakage and enhances thermal stability, making them suitable for various applications, including consumer electronics and electric vehicles [11][12]. 2. Dry Process as the Mainline for All-Solid-State Batteries - The dry process introduces new production techniques that enhance efficiency and reduce costs. Key changes include the elimination of solvent use and the introduction of new assembly methods that improve the overall production process [2][10]. 3. Key Domestic Equipment Companies - Notable companies in the solid-state battery equipment sector include: - XianDao Intelligent: First to achieve full-line equipment for solid-state batteries. - LianYing Laser: Leading in laser welding equipment, expected to benefit from increased demand in solid-state battery assembly [2][12]. 4. Investment Recommendations - The report emphasizes investment in solid-state battery equipment suppliers, particularly those involved in full-line production and advanced technologies, as they are positioned to benefit from the industry's growth [2][12]. 5. Policy Support for Solid-State Battery Development - The Chinese government is actively promoting the development of solid-state batteries through various initiatives, aiming for significant advancements in production capabilities by 2027 [2][39][45].

Core Viewpoint - The solid-state battery concept has gained significant momentum, with the solid-state battery index rising by 11.33% recently, leading to a bullish market for related stocks, despite underlying technological and commercialization challenges [2][4][17]. Market Performance - Since April 9, the solid-state battery index has increased by over 44%, significantly outperforming the broader market's 12.79% gain during the same period [4]. - Notable stock performances include Nord Shares (105.13% increase), Keheng Shares (four consecutive 20% limit-ups), and Jinlongyu (eight limit-ups since May 20) [2][4]. Investment Dynamics - The surge in the solid-state battery sector is largely driven by speculative trading, with significant participation from retail investors and institutional funds [6][7]. - Various well-known trading groups and quantitative funds have been actively involved in the trading of stocks like Jinlongyu and Nord Shares, indicating a strong speculative interest [6][7]. Positive Developments - Recent announcements, such as the release of national standards for electric vehicle batteries and BMW's road testing of solid-state battery vehicles, have fueled market optimism [7][8]. - The establishment of industry standards and successful technological advancements, such as QuantumScape's improved production efficiency, have further catalyzed investor interest [8][9]. Technological Trends - The solid-state battery industry is focusing on solid electrolytes, with a shift from multiple technological routes to a more concentrated approach, particularly towards sulfide-based electrolytes [11][12]. - Major companies, including CATL, BYD, and QuantumScape, are investing heavily in research and development of solid-state battery technologies [12][16]. Production and Commercialization Challenges - Despite the positive market sentiment, significant gaps remain between laboratory advancements and commercial production, with ongoing concerns about technology and cost [3][17]. - Many companies in the sector report minimal revenue from solid-state battery initiatives, indicating that commercial viability is still a work in progress [17]. Future Outlook - Analysts predict that small-scale production of solid-state batteries may begin around 2027, with potential applications expanding in various sectors by 2030 [16][19]. - The industry faces challenges in balancing performance metrics such as energy density, safety, and cost, with ongoing research into hybrid approaches to solid-state battery technology [19].