Solid Power, Inc. Q2 FY2026 earnings call

• Technology and Partner Progress • Delivered electrolyte performance improvements under ongoing Joint Evaluation Agreements with Samsung SDI and BMW, and continued electrolyte shipments to support partner development activities • Completed the line installation agreement with SKON and received the associated milestone payment during the quarter; negotiations are now ongoing for a new collaboration agreement with SKON • Management is optimistic about continued collaboration with Samsung SDI for potential use of Solid Power's electrolyte in electric vehicles and other all-solid-state battery (ASSB) applications

• Manufacturing Scale-Up • Advanced discussions with prospective joint venture partners for commercial-scale electrolyte production in South Korea, a leading market for ASSB development; discussions remain on track to finalize a joint venture announcement by the end of 2026 • Installation of major process equipment, piping, and electrical infrastructure for the continuous manufacturing pilot line is complete, with equipment acceptance testing on schedule for Q3 2026; plant validation and operational startup are still expected in Q4 2026 • The pilot line will demonstrate the scalability and efficiency of Solid Power's proprietary wet process technology, enabling the transition from batch to continuous production in preparation for commercial scale manufacturing

• Operational Readiness • Successfully completed Stage 1 of the ISO 9001 certification process, and remains on track to complete the Stage 2 audit in Q3 2026 with full certification expected by the end of 2026 • ISO 9001 certification will strengthen quality management systems, increase customer confidence, and support commercial readiness for the electrolyte business

• Financial Position • Ended Q2 2026 with $419.3 million in total liquidity and no outstanding debt, creating substantial financial flexibility to execute strategic priorities • Operating expenses remain well controlled and consistent quarter-over-quarter despite continued growth investments, with management focused on disciplined capital allocation

Solid Power operates as a focused developer of solid-state battery electrolyte materials, with all revenue derived from collaboration agreements and government awards. For the second quarter of 2026, revenue was negative $300,000, resulting from a $1.2 million reversal of prior period milestone revenue related to the SKON R&D license agreement. Year-to-date 2026 revenue totaled $2.8 million, generated from U.S. Department of Energy assistance agreement work and collaboration revenue from SKON. Operating expenses for Q2 2026 were $30 million, an increase of $0.6 million from Q1 2026, driven by investments in technology development, customer programs, and manufacturing scale-up. Capital expenditures for Q2 2026 were $6.3 million, almost entirely allocated to construction of the new continuous electrolyte production pilot line. No separate product segment financial data or revenue contribution percentages were disclosed.

• A joint venture for commercial-scale electrolyte production in South Korea is still expected to be announced by the end of 2026, with no change to this target
• Continuous manufacturing pilot line equipment acceptance testing remains on track for completion in Q3 2026, with plant validation and operational startup still expected in Q4 2026; first commercial output from the 45 metric ton capacity line is projected for Q1 2027
• ISO 9001 full certification is still expected by the end of 2026, with no revisions to the timeline
• The Phase 1 Joint Evaluation Agreement with Samsung SDI and BMW is scheduled to expire at the end of September 2026, and management expects to continue collaboration with both parties beyond that date

No specific new material risks or operational failures were discussed on the call. Management referenced general risks associated with forward-looking statements that could cause actual results to differ from expectations, which are detailed in Solid Power's filings with the U.S. Securities and Exchange Commission.

Q: Are there any major remaining equipment deliveries for the continuous pilot line, and what is the expected timeline for ramp-up and first output?

A: All major equipment, including the last major piece (a rotary kiln installed in May 2026), is already on site. Commissioning will begin in Q4 2026 for completion by year-end, and the 45 metric ton per year capacity line is expected to produce first output in Q1 2027.

Q: What is the status of the ongoing Joint Evaluation Agreements with Samsung SDI and BMW, and what next steps can be expected this year?

A: The original Phase 1 contracts will expire at the end of September 2026, but Solid Power is currently discussing continued collaboration frameworks with both parties. Management expects to continue working with both partners, based on strong performance and cost improvements achieved during Phase 1.

Q: What gives management confidence that a South Korean joint venture will be finalized by the end of the year?

A: Solid Power has been in active discussions with three prospective parties, all of which have provided positive signals. Negotiations with one leading candidate have advanced to the draft term sheet stage, which gives management confidence the deal will be finalized by year-end.

Q: How does Solid Power's electrolyte performance and cost profile compare to competing solutions, and what progress has been made with customers?

A: The company is focused on improving electrolyte performance to match customer cell design requirements and delivering consistent, specification-compliant material. Solid Power believes its proprietary wet process has a structural long-term cost advantage compared to dry process alternatives, and the company aims to be the cost leader as it scales.