Solid Power, Inc. Class A Common Stock 2026 Q2 Earnings Call

Please go ahead. Thank you, operator.

Welcome everyone. Thank you for joining us today. I'm joined on today's call by Solid Power's President and Chief Executive Officer, John Van Scoter, and Chief Financial Officer, Linda Heller. A copy of today's earnings release is available on the investor relations section of Solid Power's website, www.solidpowerbattery.com. I'd like to remind you that parts of our discussion today will include forward-looking statements as defined by U.S. securities laws. These forward-looking statements are based on management's current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. Except as otherwise required by applicable law, Solid Power disclaims any duty to update any forward-looking statements to reflect future events or circumstances.

For a discussion of the risks and uncertainties that could cause actual results to differ materially from those expressed in today's forward-looking statements, please see Solid Power's most recent filings with the Securities and Exchange Commission, which can be found on the company's website at www.solidpowerbattery.com. With that, let me turn it over to John Van Scoter.

Thank you, Charlie. Thank you all for joining us today. We delivered another quarter of strong execution, advancing key strategic initiatives and reinforcing our position as a leader in solid-state battery materials. During the quarter, we improved the performance of our electrolyte through work under the joint evaluation agreement with Samsung SDI and BMW while providing electrolyte shipments to support their development activities. Based on performance and cost, we are optimistic about continuing to work with Samsung SDI for potential use of our electrolyte in EVs and other potential applications of ASSB technologies. We remain committed to supporting our partners as they advance towards commercialization. Turning to our electrolyte manufacturing roadmap, we continued to advance discussions with prospective joint venture partners for commercial scale electrolyte production in South Korea.

Korea remains one of the most active markets for all solid-state battery development, we believe a partnership with an industry-leading company would accelerate market adoption while providing manufacturing scale and market access. We're pleased with the progress of these discussions and believe they reflect growing industry interest in our technology and commercialization strategy. Based on the progress we've made to date, we remain on track and expect to announce a joint venture by the end of the year. Execution of our continuous manufacturing pilot line remains on schedule and represents one of the most important milestones in our commercialization journey. During the quarter, we advanced installation of major process equipment, piping, and electrical infrastructure, are preparing for equipment acceptance testing, which remains on track for completion in the third quarter. We continue to expect plant validation and operational startup in the fourth quarter.

This pilot line is designed to demonstrate the scalability and efficiency of our proprietary wet process technology and positions us in the transition from batch to continuous production, an important step towards commercial scale manufacturing. Operational excellence remains a core priority as we prepare for commercial readiness. During the quarter, we successfully completed stage 1 of our ISO 9001 certification process and remain on track to complete the stage 2 audit in the third quarter, with certification expected by year-end. Achieving ISO 9001 certification will further enhance our quality systems, strengthen customer confidence, and support the commercial readiness of our electrolyte business. Finally, we successfully completed the line installation agreement with SK On and received the associated milestone payment during the quarter. This accomplishment represents another successful milestone in our collaboration and highlights our ability to execute key customer commitments while supporting the advancement of next generation battery technologies.

We're currently negotiating with SK On regarding a new collaboration agreement, which we believe underscores the growing demand for our technology and reflects our continued commitment to expanding strategic partnerships that drive long-term value. Overall, we are pleased with the progress achieved during the quarter. We continue to execute against our commercialization roadmap across our customer programs, manufacturing scale-up initiatives, strategic partnership discussions, and operational readiness efforts. We believe the momentum we are building today positions Solid Power to capitalize on the significant opportunities emerging within the all solid-state battery market and create long-term value for our shareholders. With that, I'll turn it over to Linda to review our financial results and provide an update on our financial discipline goal.

Linda? Thank you, John. Year-to-date revenue totals $2.8 million, reflecting our ongoing progress under the U.S.

Department of Energy Assistance Agreement and revenue from our collaboration agreements with SK On. During the second quarter of 2026, our revenue was negative $300,000. Current quarter revenue was impacted by a reversal of revenue from the first quarter of $1.2 million, driven by a change in our assumptions within certain milestone payments connected to our SK On research and development license agreement. As we continue advancing our commercialization initiatives, operating expenses were $30 million during the second quarter, compared to $29.4 million in the first quarter of 2026. Expenses remained well controlled and are generally consistent quarter-over-quarter, despite continued investments in technology development, customer programs, and manufacturing scale-up activities.

Operating loss for the quarter was $30.3 million, and net loss was $23.8 million or $0.11 per share, reflecting our continued investment in long-term growth opportunities and commercialization readiness. Capital expenditures totaled $6.3 million during the quarter, primarily related to construction of our new continuous electrolyte production pilot line. This strategic investment remains an important milestone in our manufacturing roadmap and is expected to play a key role in demonstrating our scalable, commercial-ready production capabilities. Turning to our balance sheet and liquidity, Solid Power's financial position remains a significant strength. We ended the quarter with total liquidity of $419.3 million, providing substantial financial flexibility and significant runway to execute our strategic priorities. In addition, contract assets and accounts receivable totaled $3.2 million, total current liabilities were $17.2 million. We continue to have no debt, reflecting a healthy balance sheet and a strong liquidity profile.

Overall, we remain focused on disciplined capital allocation while continuing to invest in strategic initiatives that support long-term growth. We believe our strong balance sheet provides financial capability to execute our commercialization strategy and support our customers' development programs. I will now turn the call back to John.

Thank you, Linda. In closing, I want to thank our employees, customers, partners, and shareholders for their continued support and confidence in Solid Power. The progress we've achieved this quarter reflects the strength of our team, the value of our technology, and our disciplined focus on execution. As we look ahead, we are entering an important phase of our commercialization journey. With strong customer and partner engagement, continued advancement of our manufacturing capabilities, a robust balance sheet, and growing commercial opportunities, we believe Solid Power is well-positioned to deliver meaningful milestones and create long-term value. While there is still important work ahead, we are encouraged by the momentum we are building and remain confident in our ability to execute against our strategy and advance the adoption of all solid-state battery technology. Thank you for your time today. We look forward to updating you on our continued progress in the quarters ahead.

We will now take your questions.