Solid Power, Inc. (SLDP): Business Model Canvas [Dec-2025 Updated]

You're trying to figure out if Solid Power, Inc. is a future battery giant or just another R&D sinkhole, and honestly, their Business Model Canvas tells a clear story: this is a company betting big on sulfide solid-state electrolytes, backed by serious cash and serious partners. As of late 2025, they're burning cash-reporting an operating loss of $74.3 million year-to-date-but that burn is funding critical milestones with heavyweights like BMW Group and Ford Motor Company, all while sitting on $300.4 million in liquidity as of September 30, 2025. Dive below to see exactly how their key activity of scaling the pilot line translates into future revenue streams from electrolyte sales and licensing, and why their value proposition of safer, 400 Wh/kg cells is worth the current investment risk.

Solid Power, Inc. (SLDP) - Canvas Business Model: Key Partnerships

You're looking at the core relationships Solid Power, Inc. (SLDP) has built to move its solid-state battery (ASSB) technology toward commercial scale. These aren't just handshake deals; they involve serious money, equipment, and hard deadlines, which is what matters for a financial analyst like you.

BMW Group

The relationship with BMW Group is deep, dating back to 2016, and it's focused on validating the technology for premium electric vehicles (EVs). Solid Power, Inc. (SLDP) and BMW Group have been intensifying their ASSB development activities through a technology transfer agreement since 2022. The latest concrete milestone, as of October 2025, was the integration of Solid Power, Inc.'s large-format pure ASSB cells into a BMW i7 technology test vehicle operating in the Munich area. That's real-world testing, not just lab work. BMW retains termination rights starting December 31, 2025, under an extension amendment signed in late 2024, so that date is definitely one to watch. Back in 2021, BMW also became an equal equity owner alongside Ford in a $130 million Series B investment round for Solid Power, Inc. The path forward now involves BMW evaluating cells produced via the new Samsung SDI collaboration.

Samsung SDI

This is a major late-2025 development. Solid Power, Inc. (SLDP) announced a strategic collaboration in late October 2025 with Samsung SDI and BMW Group to develop and validate a demonstration vehicle using ASSB technology. Solid Power, Inc. (SLDP) supplies its proprietary sulfide-based solid electrolyte to Samsung SDI. Samsung SDI then integrates this into separator and/or catholyte components to build the actual cells for evaluation against agreed-upon performance parameters. This move signals strong industry validation, as Samsung SDI is reportedly on schedule to mass-produce sulfide-based ASSBs by 2027. This partnership supports Solid Power, Inc.'s objective to manufacture and sell electrolyte to Tier 1 battery manufacturers and automotive original equipment manufacturers (OEMs).

SK On

The partnership with SK On is structured around manufacturing readiness, which is critical for scaling. In January 2024, Solid Power, Inc. (SLDP) deepened this relationship with three new agreements. Site acceptance testing for the SK On pilot line in Korea was on schedule for completion by year-end 2025. Here's how the financial structure looks:

• The line installation arrangement involves Solid Power, Inc. designing and installing the new cell manufacturing line for an estimated $22 million, contingent on milestone achievement.
• The research and development license includes payments totaling $20 million from 2024 to 2027, subject to milestones.
• The electrolyte supply agreement requires SK On to purchase at least eight metric tons of electrolyte through 2030.

Overall, Solid Power, Inc. expected these combined agreements with SK On to generate at least $50 million in revenue. The electrolyte sales alone are projected to bring in at least $10 million depending on volumes.

Ford Motor Company

Ford Motor Company remains a key strategic investor and development partner. The Joint Development Agreement (JDA) between Solid Power, Inc. (SLDP) and Ford was extended through a third amendment to December 31, 2025. This JDA was initially established in December 2018. Ford's early commitment included an equity investment in that $130 million Series B round, showing a long-term alignment on the future of EV battery performance.

U.S. Department of Energy (DOE)

Government backing is essential for de-risking capital-intensive scale-up. Solid Power, Inc. (SLDP) secured up to $50 million in funding via an Assistance Agreement with the U.S. Department of Energy (DOE), effective January 1, 2025. This is a cost-sharing arrangement; Solid Power, Inc. is required to contribute $60 million of its own funds, making the total project cost $110 million. The goal is to enhance the production of sulfide-based solid electrolyte material. This funding directly supports the plan to increase annual electrolyte production capacity from the current 30 metric tons to 140 metric tons by 2028. Solid Power, Inc. recognized $1.5 million in Q1 2025 revenue under this grant.

To keep things straight, here's a quick look at the major financial commitments tied to these key relationships:

Solid Power, Inc. (SLDP) - Canvas Business Model: Key Activities

You're looking at the engine room of Solid Power, Inc. (SLDP)-the specific, hands-on work that turns their sulfide electrolyte vision into something tangible for the auto giants. This isn't about selling software; it's about making a physical material and proving it works inside a real vehicle. Here's the breakdown of what the team was actively driving in late 2025.

Sulfide solid electrolyte material innovation and performance improvement

The core activity is definitely the continuous refinement of that sulfide solid electrolyte. Management's stated objective for 2025 was to drive electrolyte innovation and performance, using direct feedback from customers and their own internal cell development efforts. They are actively using the Electrolyte Innovation Center, or EIC, to quickly innovate based on the demand they see from current and prospective partners for multiple generations of electrolyte samples. This R&D focus is what underpins their entire licensing and supply model.

Executing on partner milestones for joint development agreements (JDAs)

A huge chunk of the day-to-day involves hitting contractual targets with their anchor automotive partners. You saw revenue spikes tied directly to these achievements, which is how they fund the heavy R&D. The Ford Motor Company joint development agreement was extended to December 31, 2025, showing continued commitment there. The work with SK On Co., Ltd. was particularly intense through the first three quarters of 2025, with revenue in Q3 2025 of $4.6 million driven primarily by the Site Acceptance Testing (SAT) milestone under their line installation agreement. The combined agreements with SK On are structured to bring in at least $50M in revenue upon milestone achievement and electrolyte deliveries. Plus, the partnership with BMW Group hit a major validation point when they introduced an i7 test vehicle powered by Solid Power's cells. More recently, in Q3 2025, they announced a new Joint Evaluation Agreement with Samsung SDI and BMW, which management called a meaningful advancement toward commercialization.

Here's a quick look at how those partner milestones translated financially and temporally:

Scaling up continuous electrolyte production pilot line (commissioning in 2026)

This is the capital-intensive activity supporting the future revenue stream. Solid Power, Inc. is actively working to scale up, with commissioning of the continuous electrolyte production pilot line at the SP2 facility still on track for 2026. The goal for this line is to expand production capacity to 75 metric tons per year by 2026. You can see the spend in the CapEx figures; H1 2025 CapEx was $5.0 million, with Q3 2025 CapEx at $0.6 million, mostly dedicated to this construction. They also received $3,300,000 in reimbursements from the U.S. Department of Energy for this specific project as of June 30, 2025.

Battery cell design and prototype testing (e.g., BMW i7 test vehicle)

This activity is intrinsically linked to the JDAs. It involves taking the refined electrolyte and integrating it into full-format, pure All-Solid-State Battery (ASSB) cells for customer evaluation. The successful deployment in the BMW i7 test vehicle is the concrete output here, demonstrating that their cell design, using their electrolyte, functions in a real-world application. This testing feeds directly back into the first key activity-electrolyte innovation.

Protecting core Intellectual Property (IP) through patent development

While the search results didn't yield specific patent counts or R&D spend allocated solely to IP protection for 2025, the entire business model hinges on this. Solid Power's strategy is to sell its electrolyte material and license its cell designs and manufacturing processes to cell manufacturers. This inherently means that the ongoing R&D, which resulted in $18.1 million in year-to-date revenue by the end of Q3 2025, is also an activity focused on building and defending a proprietary technology moat. The company is maintaining strong liquidity of $300.4 million as of September 30, 2025, to fund these high-value, IP-intensive development activities.

Finance: review the Q4 2025 cash burn projection against the revised 2025 cash investment guidance of $85 million to $95 million by next Tuesday.

Solid Power, Inc. (SLDP) - Canvas Business Model: Key Resources

You're looking at the core assets Solid Power, Inc. (SLDP) relies on to execute its capital-light model of developing and selling solid-state electrolyte technology. These aren't just abstract concepts; they are tangible and financial anchors supporting their commercialization push.

The foundation is definitely the proprietary sulfide-based solid electrolyte technology. This material is what they believe offers the best balance of high ionic conductivity and processability compared to other solid electrolyte classes, which is key for achieving step-change improvements in battery energy density, life, and safety over traditional lithium-ion cells. They are focused on making this chemistry manufacturable at scale, which is a major hurdle for the industry.

Financially, you need to note their cash position. As of September 30, 2025, Solid Power, Inc. maintained a strong liquidity of $300.4 million. This strong balance sheet, coupled with having no debt financing, gives them a significant runway to fund ongoing development and capability expansion without immediate external pressure. The management team revised its expectation for 2025 cash investment to be in the range of $85 million to $95 million.

Intellectual property is a critical resource here, protecting that core technology. Their extensive patent portfolio and trade secrets are central to their licensing-focused strategy. Here's a quick look at the IP footprint as reported in early 2025, which forms the basis of their current protection:

The physical infrastructure supporting R&D and scaling is also a key resource. The Electrolyte Innovation Center (EIC), commissioned in 2024, is designed to allow rapid iteration on electrolyte chemistry and manufacturing processes. This center enables the production of solid-state cells ranging from 0.2 Ah to 60 Ah. Furthermore, they are building out production capacity. They currently have 2 pilot electrolyte manufacturing lines with a combined capacity of 30MT per year, and the plan is to grow capacity to 75MT per year by the end of 2025 or by 2026.

The talent pool is the final piece of this resource puzzle. While a specific R&D headcount isn't readily available for late 2025, the total employee count gives you a sense of scale. Solid Power, Inc. had 260 total employees as of December 31, 2024. These are the highly specialized personnel driving the technology forward, working on objectives like:

• Driving electrolyte innovation through customer feedback.
• Executing on partner requirements for SK On and BMW.
• Continuing detailed design for the continuous electrolyte production pilot line, targeting commissioning in 2026.

To be fair, the success of these resources hinges on continued partner engagement, like the Joint Evaluation Agreement with Samsung SDI and BMW announced in Q3 2025. Finance: review the cash burn rate against the $300.4 million liquidity figure by next week.

Solid Power, Inc. (SLDP) - Canvas Business Model: Value Propositions

You're looking at the core promises Solid Power, Inc. (SLDP) makes to its customers-the automakers and cell manufacturers-as of late 2025. These aren't just vague hopes; they are tied to specific technical benchmarks and partnership milestones.

The primary technical value is a significant leap in performance over current lithium-ion cells. Solid Power, Inc. is targeting an all-solid-state battery (ASSB) cell energy density of 400 Wh/kg. This is a direct response to the industry need for more energy in the same or smaller package. Also, third-party analysis suggests their solid-state batteries (SSBs) could be 20-40% lighter and approximately 33% more compact than traditional lithium-ion batteries.

Safety is a huge selling point. Solid Power, Inc. replaces the flammable liquid electrolytes found in conventional batteries with a sulfide-based solid electrolyte. This non-flammable material removes the inherent fire or explosion risk associated with thermal runaway in extreme temperatures or damage scenarios.

This technology is engineered to work with the existing infrastructure. Solid Power, Inc.'s business model centers on selling its electrolyte material and licensing its cell designs and manufacturing processes to established cell makers. This compatibility helps speed up adoption, as partners like SK Innovation and Samsung SDI integrate the technology into their lines. For instance, the company neared completion of factory acceptance testing for the SK On pilot cell line, with site acceptance testing targeted for later in 2025.

For the end-user, the value translates directly into better electric vehicles (EVs). The higher energy density and improved performance are designed to deliver extended EV driving range and longer battery life compared to current offerings. To demonstrate this, Solid Power, Inc. announced the successful testing of its all-solid-state battery cells in a BMW i7 vehicle on May 20, 2025.

While the $\text{\$60/kWh}$ long-term production cost target by 2025 was an early goal, the current financial focus is on scaling production capacity to drive future cost-downs. The company is advancing its pilot continuous electrolyte manufacturing line at the SP2 facility, which is on track for commissioning in 2026, aiming for 75 metric tons per year of capacity. This scaling is what underpins the long-term cost advantage over liquid electrolyte systems. For context on their current financial footing supporting this R&D, Solid Power, Inc. reported total liquidity of \$300.4 million as of September 30, 2025.

Here's a quick look at the key technical and partnership metrics underpinning these value propositions as of late 2025:

The core technology differentiators that deliver these value propositions include:

• Sulfide-based solid electrolyte technology.
• Elimination of flammable liquid electrolytes.
• Enabling lithium metal anodes.
• Licensing of cell designs and manufacturing processes.
• Electrolyte sampling driving process engineering.

You should definitely track the progress of the SP2 pilot line commissioning, as that is the next major step to validate the manufacturability and cost structure. Finance: draft 13-week cash view by Friday.

Solid Power, Inc. (SLDP) - Canvas Business Model: Customer Relationships

You're looking at how Solid Power, Inc. (SLDP) manages its most critical external ties-the relationships that will ultimately determine if their solid-state battery technology moves from the lab to the road. These aren't simple vendor-customer transactions; they are deep, multi-year commitments essential for de-risking a capital-intensive technology transition.

High-touch, long-term Joint Development Agreements (JDAs) with OEMs

The relationship with Ford Motor Company is a prime example of a high-touch JDA, which was recently amended to extend its term until December 31, 2025. This ongoing collaboration solidifies the shared objective for the future of electric mobility. Similarly, the agreement with BMW Group has a complex structure; the JDA was further amended in September 2024 to extend the term until specific development milestones are met, though BMW retains termination rights beginning on December 31, 2025. Solid Power, Inc. is actively working toward negotiating a non-exclusive electrolyte supply agreement with BMW once BMW's prototype cell manufacturing line is commissioned. These agreements are the foundation for future commercial sales.

Collaborative R&D and co-development with Tier 1 battery manufacturers

Solid Power, Inc.'s strategy heavily involves co-development with major Tier 1 battery manufacturers, which helps expedite the research and development process through a direct feedback loop. The collaboration with SK On Co., Ltd. is significant, involving both a JDA for joint cell production and an electrolyte supply agreement. Execution on milestones under the SK On agreements drove a portion of the revenue recognized in 2024, which totaled $20.1 million. By the second quarter of 2025, Solid Power, Inc. completed factory acceptance testing (FAT) for the SK On pilot cell line, a milestone that contributed to the $7.5 million in revenue and grant income recognized in Q2 2025. Site acceptance testing (SAT) for that line remained on schedule for completion by the end of 2025. Furthermore, a new strategic collaboration was announced in late October 2025 with Samsung SDI and BMW to advance all-solid-state battery technology for a demonstration vehicle. In this arrangement, Solid Power, Inc. provides the sulfide-based solid electrolyte directly to Samsung SDI for cell building.

Here's a look at the key partner milestones and associated financial impacts through Q3 2025:

Dedicated technical support for electrolyte integration and pilot line installation

The relationship with Tier 1 partners necessitates deep technical engagement, particularly around integrating the solid electrolyte into their manufacturing processes. Solid Power, Inc. is executing on its electrolyte technology development roadmap, which includes the start of the installation of a pilot continuous electrolyte manufacturing line. This new line, referred to as SP2, is designed to expand production capacity to 75 metric tons and support anticipated small volume programs for current and future customers. Commissioning for this continuous electrolyte production pilot line remains on track for 2026. Capital expenditures for the construction of this line totaled $5.0 million in the first half of 2025. The company is focused on maintaining financial discipline, with management reducing the 2025 cash investment guidance to a range of $85 million to $95 million.

Active electrolyte sampling and feedback-driven innovation cycles

A core part of the customer relationship is the iterative process driven by physical product testing. Solid Power, Inc. has continued to receive customer feedback on electrolyte sampling, which is driving process engineering expected to lead to improved performance. The company's objective for 2025 includes driving electrolyte innovation and performance through feedback from customers and internal cell development. The Electrolyte Innovation Center (EIC) is utilized to quickly innovate based on demand signals. This active sampling has led to continued demand for multiple generations of electrolyte from customers. The year-to-date results through Q3 2025 reflect these development costs, with an operating loss of $74.3 million and a net loss of $66.4 million. The total liquidity position as of September 30, 2025, was $300.4 million, providing the cushion needed for these high-touch development cycles.

The financial commitment to innovation and customer support through Q3 2025 looks like this:

• Year-to-date 2025 cash used in operating activities was $61.2 million as of September 30, 2025.
• Year-to-date 2025 operating loss was $74.3 million.
• Total liquidity as of September 30, 2025, was $300.4 million.
• Total liquidity as of June 30, 2025, was $279.8 million.
• The company raised net proceeds of $32.9 million from common stock sales in Q3 2025.

Solid Power, Inc. (SLDP) - Canvas Business Model: Channels

You're looking at how Solid Power, Inc. (SLDP) gets its technology and materials into the hands of the market, which is key for a pre-commercial entity. Their channel strategy centers on being a specialized supplier and licensor, not a mass battery producer. This capital-light approach is defintely a strategic choice to manage overhead.

Direct sales of proprietary solid electrolyte material to cell manufacturers.

Solid Power, Inc. endeavors to be a leading producer and distributor of its sulfide-based solid electrolyte material. Current revenue recognition is tied to achieving development milestones with partners rather than shipping large volumes of final product. For instance, revenue recognized in the third quarter of 2025 was $4.6 million, primarily from work under the line installation agreement with SK On Co., Ltd., which included site acceptance testing milestones. Year-to-date revenue recognized through Q3 2025 reached $18.1 million. The company is actively preparing for scale, with detailed design work continuing for the installation of its continuous electrolyte production pilot line, which is on track for commissioning in 2026. This pilot line aims for an annual capacity of about 75 tons at the pilot scale.

Licensing of cell designs and manufacturing processes to partners.

The business model explicitly includes licensing cell designs and manufacturing processes alongside electrolyte sales. This is a crucial channel for technology dissemination. For example, previous agreements with SK On included a research and development license, with expectations of at least $50M in revenue upon milestone achievement and electrolyte deliveries from the combined agreements. This licensing component allows partners to integrate the technology into their own manufacturing lines.

Direct engagement with strategic Automotive OEMs for technology validation.

Direct engagement with Original Equipment Manufacturers (OEMs) serves as the primary channel for technology validation and de-risking the commercial path. These relationships are critical for proving the technology in automotive-grade applications. The company maintains strong ties with several major players:

• The joint development agreement with Ford Motor Company was formally extended through December 31, 2025.
• Solid Power announced a Joint Evaluation Agreement with Samsung SDI and BMW in Q3 2025 to advance all-solid-state battery development.
• BMW successfully tested full-scale all-solid-state battery cells in an i7 demonstrator vehicle, announced on May 20, 2025.
• BMW will host a prototype line for ASSBs at its Cell Manufacturing Competence Center (CMCC) in Parsdorf.

Here's a quick look at the key partnership activities that drive channel progress:

The company's liquidity position as of September 30, 2025, stood at $300.4 million, which helps fund the high development costs associated with these validation channels.

Investor Relations website for public and financial communication.

Public and financial communication is channeled directly to stakeholders via the Investor Relations website. For example, the release of third quarter 2025 results on November 4, 2025, included access to a live audio webcast on the site located at www.solidpowerbattery.com/investor-relations. This channel ensures transparency regarding operational progress, such as the on-schedule site acceptance testing for the SK On pilot cell line by year-end 2025.

Solid Power, Inc. (SLDP) - Canvas Business Model: Customer Segments

You're looking at the core groups Solid Power, Inc. is targeting with its sulfide-based solid electrolyte technology, which is a key differentiator from competitors planning to be full battery manufacturers. The focus is clearly on enabling existing players to transition their manufacturing lines.

The company's business model centers on selling this electrolyte material and licensing its cell designs and manufacturing processes, which is why these specific customer types are critical for near-term revenue and long-term scale.

Here are the defined customer segments as reflected in the late 2025 operational updates:

• Global Tier 1 battery cell manufacturers, evidenced by active collaborations and milestone achievements.
• Major Automotive Original Equipment Manufacturers (OEMs) directly involved in vehicle evaluation programs.
• Aerospace and other high-performance energy storage applications, representing a future market for the technology.
• Government and defense agencies, acting as a revenue source via grant-funded development work.

The financial reality of late 2025 shows that revenue generation is currently tied directly to the progress made with these key partners and government funding milestones. For instance, year-to-date revenue recognized as of the third quarter of 2025 reached $18.1 million, with Q3 revenue specifically driven by work performed under the agreement with SK On Co., Ltd..

The relationships with the largest players are formalized through specific agreements and technical targets:

The government segment provides direct, non-dilutive funding for capacity expansion. The total project cost for the DOE agreement is $110 million, comprising the $50 million grant and a $60 million cost share from Solid Power, Inc.. This funding supports the installation of the continuous electrolyte production pilot line, which is targeted for commissioning in 2026, with an anticipated capacity of 75 metric tons per year.

For the automotive OEMs and cell manufacturers, the focus is on technical validation and scaling the supply chain. The company is working to increase electrolyte sampling to meet rising demand from these strategic customers.

• Electrolyte sampling is increasing with multiple new and repeat potential customers requesting material.
• The company is focused on fulfilling partner and customer commitments throughout 2025.
• The business model is validated by Tier 1 manufacturers and OEMs coalescing around the sulfide solid-state battery architecture.

The aerospace and other high-performance segment is an extension of the core battery technology application, though specific 2025 revenue or contract numbers tied exclusively to this segment weren't detailed in the latest financial reports, which heavily emphasized EV sector progress. Solid Power, Inc. endeavors to be a leading producer and distributor of its material for both EVs and other applications.

Financially, the commitment to these customer development programs is reflected in the company's spending. Management revised the expected 2025 cash investment down to a range of $85 million to $95 million, showing a focus on efficiency while still funding partner milestones.

Solid Power, Inc. (SLDP) - Canvas Business Model: Cost Structure

You're looking at the core expenses Solid Power, Inc. (SLDP) is facing as they push their solid-state battery technology toward commercial scale. The cost structure is heavily weighted toward future capability rather than current revenue generation, which is typical for deep-tech development.

The primary cost driver remains the heavy investment in Research and Development (R&D) and material science. This spending fuels the innovation needed to perfect the sulfide-based solid electrolyte and cell designs, which is the company's core value proposition. This R&D intensity directly translates into significant operating expenses.

The financial reality shows this burn rate clearly. As of the third quarter of 2025, the company reported a year-to-date 2025 operating loss of $74.3 million. This loss is a direct reflection of the high costs required to maintain a leadership position in this complex field.

A significant portion of the operating expenses is dedicated to personnel costs for specialized engineers and scientists. These are the experts required to execute on the complex electrolyte development roadmap and manage the pilot line builds. While specific personnel cost breakdowns aren't itemized in the latest reports, the overall operating expense for the third quarter alone was $29.0 million.

Beyond day-to-day operations, there are substantial outlays for physical assets related to scaling production. This includes capital expenditures for pilot line construction and equipment. For the year-to-date 2025 period, the company reported Capital Expenditures (CapEx) of $5.6 million, with the third quarter specifically accounting for $0.6 million, primarily for the continuous electrolyte production pilot line construction.

The company is managing this burn with a revised spending target. Management has set the Total 2025 cash investment expected between $85 million and $95 million. This figure, which covers both operations and capital expenditures, was recently revised downward, signaling a focus on fiscal discipline while still investing heavily in technology.

Here's a quick look at the key financial metrics defining the cost structure as of the end of Q3 2025:

The nature of these costs means that achieving milestones with partners like SK On Co., Ltd. and Samsung SDI/BMW is critical, as these agreements provide revenue that offsets the high fixed and variable costs associated with advanced material development. The cost structure is inherently front-loaded, meaning large investments precede scalable revenue.

You can see the concentration of spending in a few key areas:

• Funding the ongoing development of the sulfide-based solid electrolyte.
• Executing on site acceptance testing for the SK On pilot cell line.
• Detailed design work for the continuous electrolyte production pilot line (SP2).
• Maintaining a highly skilled technical workforce.

To be fair, the revision of the 2025 cash investment guidance to the $85 million to $95 million range suggests management is actively looking for efficiencies within the R&D spend, which is a necessary action given the high cash burn rate. Finance: draft 13-week cash view by Friday.

Solid Power, Inc. (SLDP) - Canvas Business Model: Revenue Streams

Solid Power, Inc. (SLDP) revenue streams in late 2025 are heavily weighted toward collaborative development milestones and government funding as the company progresses toward commercial sales of its sulfide-based solid electrolyte material.

Revenue and Grant Income Year-to-Date Q3 2025

The recognized revenue and grant income for the first three quarters of 2025 totaled $18.1 million year-to-date. This figure is an increase of $2.4 million over the same period in 2024. The quarterly breakdown shows the lumpy nature of milestone-based revenue recognition.

Milestone Payments from Joint Development Agreements (JDAs) with Partners

Revenue is directly tied to achieving specific technical and operational milestones within its multi-year agreements. Key partners driving these payments include SK On Co., Ltd., BMW, and Ford Motor Company. The progress in Q3 2025 was notably driven by work performed on the site acceptance testing milestone with SK On. Furthermore, a Joint Evaluation Agreement was announced with Samsung SDI and BMW to advance all-solid-state battery development.

Government Grant Disbursements (e.g., DOE grant)

Solid Power, Inc. secured funding from the U.S. Department of Energy (DOE) of up to $50 million to enhance sulfide-based solid electrolyte material production capabilities. This funding is part of an Assistance Agreement effective January 1, 2025, which requires a $60 million cost-share contribution from Solid Power. Disbursements are recognized as revenue:

• As of June 30, 2025, Solid Power had received $3.3 million in reimbursements under the DOE agreement.
• In Q1 2025, $1.5 million was received under this grant.

Future Revenue from Sales of Sulfide-Based Solid Electrolyte Material

The ultimate commercial revenue stream is the production and distribution of the sulfide-based solid electrolyte material. The company is targeting an expansion of production capacity to 75 metric tons per year by 2026 with the commissioning of its continuous manufacturing pilot line on track for 2026. While current revenue is milestone-based, management has indicated the timing for significant electrolyte sales:

• Anticipated significant revenue from electrolytes is projected for the 2027-2028 period onwards.
• The bulk of expected electrolyte revenue is forecasted around 2030 and beyond.

Future Revenue from Licensing Fees for Cell Designs and Processes

Solid Power, Inc.'s business model includes generating revenue by licensing its proprietary cell designs and manufacturing processes to cell manufacturers, distinguishing it from competitors planning to be commercial battery manufacturers themselves. This stream is expected to materialize alongside the material sales as the technology matures and is adopted by customers.