Solid Power, Inc. Class A Common Stock J.P. Morgan Automotive Conference

Well, good morning, everyone, and thank you, Bill and J.P. Morgan for this opportunity. I will just briefly touch on a few slides and not the whole deck that is available on our webpage. To introduce Solid Power, and why we are so compelling to the industry, we have a leading position relative to sulfide electrolytes for all-solid-state batteries. We have been working on this for over 15 years. We have a very unique position relative to performance, relative to a wet process that scales, and ultimately to the lowest cost. We are pursuing a capital-light business model, which has many, many advantages. We will not compete directly with tier 1 battery manufacturers. We have a very strong balance sheet now with over $400 million in cash equivalents as of the close of last quarter. As I mentioned, we have got a very differentiated manufacturing profile.

Very scalable, high yield, and tolerates lower dry room burden conditions. I think that it is one of the main attractions for our competitiveness moving forward. We also have a very unique capability relative to a feedback loop. In May of last year, BMW announced an all-solid-state module based on our cells that we produced, 60 amp hour EV cells, and integrated that into an i7 and drove it around Munich for a number of months to demonstrate real-world conditions. That feedback loop we continue to have in-house, so we can validate changes and improvements to electrolyte at the cell level, which is quite unique. Then we have got an excellent global partner network with BMW, SK On, and most recently with Samsung SDI. Skip ahead to why solid-state batteries. This one right here. What you see pictured there is actually the electrolyte in glass jars.

That is what it looks like. Then actually at the microscopic level, you see it there pictured, the crystalline structure. This will drive the next level of performance for batteries in energy density, in battery life, and charging speed as well as safety. Again, we have got a very unique position with regard to that with three generations of electrolyte now available for our customers. The market five years ago was still questioning how to do all-solid-state batteries. There is really three ways you can do it. With polymers, with oxides, and with sulfides. We have been a long pioneer and evangelist of the sulfides because of their performance. They have the absolute best ionic conductivity, and because of their manufacturability, very, very important, and their low cost. You see pictured on the right a lot of names, all of which have sulfides now on their roadmap.

It is a strong validation of what Solid Power has been evangelizing and pioneering for over a decade. In terms of why Solid Power itself, I have touched on some of this already, but because we have been in the market and driving innovation for over a decade, we have one of the largest data sets, both in terms of electrolyte as well as cells. We are using that and harvesting that now using AI and machine learning to drive continued innovation as well as improvements in our manufacturing process. We have set up a pre-pilot Electrolyte Innovation Center right next to our pilot line. We are using that at a small scale to rapidly make improvements and iterations and then migrate those into the pilot line. We did that most recently with Samsung SDI and BMW on the three-way collaboration.

Did some major improvements on our processes as a result of that rapid iteration. I've already mentioned the feedback loop between cell and electrolyte, as well as the manufacturing scalability of our process. Again, what makes us unique is we have a mature wet process at the pilot level compared to our competitors using a dry process. With our partner network, we've been working closely with BMW for over nine years now, SK On for over five years, and for Samsung SDI over a year. On the left, you see where we're active today. We're migrating from a technology licensing collaboration, which is where our revenues have come from so far, to electrolyte supply at the pilot level.

Then we're building on the right-hand side a partnership with a world-class partner in Korea to do the next level of scale up and then continue to advance our partnerships overall. We continue to primarily be focused in the EVs segment, but we are getting interest in other areas like robotics, humanoids, mining, and aviation and defense. We see a lot of synergies from the EV market into those spaces, but we'll be pursuing the same model there that we have in EV where we'll be doing proof of concept and OEM partnership development, and then introducing a tier 1 battery manufacturer for the volume productions. Lastly, this is our scale-up. In batteries, it is all about scale-up and solving problems as you go to the larger and larger capacities.

Right now, today, we have a 30 metric ton facility in Colorado that's a batch process. We're in the final stages of commissioning the continuous flow line there in Colorado on phase 2. That will get us up to 75 metric tons in the Colorado facility. Then, as I said, we're in the process of striking a joint venture partnership with a large conglomerate in Korea to do the next level of scale-up, probably around 500 metric tons, with a vision to go upwards of 20,000 metric tons with that same partner over the next three to five years. Hopefully it gives you an introduction to the company, and where we're focused, why we're differentiated, and where we're headed from.

I think if you look at the overall industry, traditional liquid electrolyte-based lithium-ion batteries are asymptotically hitting their peak in terms of performance. The industry needs higher performing batteries to address things like range anxiety, charge anxiety, those sort of things. All-solid-state batteries really are a unique technology to do that. Energy density, cycle life, safety, and then ultimately cost at the system level. All we believe will be advantages of all-solid-state batteries. Those are the pain points I think that ASSBs are really addressing. In terms of what we bring to the party, we do bring a unique process capability in terms of that wet process for electrolytes, in terms of the highest connectivity for the performance of the electrolyte. Our intention is to be the absolute low-cost provider to the marketplace.

Well, I think those technologies you mentioned are uniquely enabled by a sulfide-based all-solid-state battery. High purity silicon anodes perform best in a sulfide all-solid-state battery architecture in terms of energy density and performance. Same thing for lithium anodes or anode-less designs. Those are also uniquely enabled in sulfide electrolyte systems. I think that we have, again, a unique position as those technologies mature and are introduced to offer higher and higher performance as a result of adoption of those. In terms of timeframe, we have to be ahead of the market. A lot of people are talking about 2029, 2030, early 2030s, but as a material provider, we have to be there in advance. We have to be qualified in advance so that they can be considered to be qualified for those SOPs.

We intend to have this joint venture partnership announced this year. That'll put us in a position to do the design and the construction of that next year to be in a position to ship up to 500 metric tons to Korean customers and other customers around the world in 2028, which would enable 2029, 2030 timeframes for SOPs for small fleets. Beyond that, we again envision the same partnership to go up much larger. The concept is a shell factory, and we would drop in 2,000 metric ton modules as the demand materializes going forward for a total capacity of 20,000 metric tons over time.

From electrolyte standpoint, it is scaling. The cell designs themselves are still maturing. To get to the target of energy densities and cycle life, for instance, and safety at an EV size cell, I think are still technical challenges that the tier 1 battery manufacturers are grappling with. We know that because of our work most recently with Samsung SDI. It was a tremendous collaboration. We learned a tremendous amount. They challenged us, but we could tell that their designs are still evolving to get to those target levels that have been demonstrated at small scale, but not at large EV size cells.