Solid Power Inc
For the period ended Mar 31, 2025. Filed May 7, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 7, 2025
SLDP$1.99-2.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-11-08.
0001558370-24-014938
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-07.
0001558370-25-006581
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 48 previous paragraphs and 54 current paragraphs.
19 unchanged; 15 reworded; 19 added; 14 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 12 previous and 8 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (19)
Current report
2025 Development Objectives
Current report
We made progress on our 2025 development objectives as the solid-state battery landscape continues to evolve. Below is a summary of our progress towards our goals.
Current report
During the three months ended March 31, 2025, our capital and operational investments supported our key 2025 development objectives.
Current report
Revenue
Current report
We recognized revenue of $6.0 million during the three months ended March 31, 2025, compared to $5.9 million during the three months ended March 31, 2024. Revenue recognized in the current year was driven by both our collaborative revenue and government contracts revenue.
Current report
We recognized $4.5 million of collaborative revenue for the three months ended March 31, 2025. The majority of our collaborative revenue consisted of revenue driven by our performance on ourresearch and development technology license agreement, line installation agreement, and electrolyte supply agreement with SK On (collectively, the“SK On Agreements”). During the three months ended March 31, 2025, we neared completion of factory acceptance testing under the line installation agreement, which we completed in April 2025. We intend to continue executing on the SK On Agreements and anticipate recognizing additional revenue from the SK On Agreements through the remainder of the year.
Current report
We recognized $1.5 million of government revenue for the three months ended March 31, 2025. The majority of our government revenue consisted of revenue from our assistance agreement (the “Assistance Agreement”) with the U.S. Department of Energy (“DOE”). The Assistance Agreement provides that the DOE will provide us with funding of up to $50 million for our installation of equipment necessary for the continuous production of sulfide-based solid electrolyte material. During the three months ended March 31, 2025, we conducted detailed design of equipment and finished ordering long-lead time equipment for the installation of a continuous electrolyte production pilot line. Revenue is recognized on the non-capital costs of the project. As we continue to execute on the construction of the project milestones, we expect to recognize additional grant revenue.
Current report
Operating Expenses
Current report
Operating expenses were $30.0 million for the three months ended March 31, 2025, a decrease of $1.7 million, or 5%, compared to operating expenses of $31.7 million for the same period in 2024. This decrease was primarily attributable to a decrease in direct expenses, which were $2.7 million in the period ending March 31, 2025 compared to $4.3 million in the period ending March 31, 2024, a decrease of $1.6 million. This decrease in direct expenses was due to the use of internal labor and facility costs to execute on milestones under our collaborative arrangements in the three months ended March 31, 2024 compared to outsourcing to our strategic partner in Korea, Dahae Energy Co., Ltd. (“Dahae”), for the three months ended March 31, 2025. We expect our direct costs to increase in relation to our revenue as we begin site acceptance testing of the line at SK On’s facility later this year.
Current report
Research and development-related operating expenses largely consisted of employee compensation and employee benefit costs incurred to maintain our skilled workforce, including engineers, scientists, operators, chemists, and technicians. Total research and development costs remained consistent with a $0.1 million increase in the three months ended March 31, 2025 compared to the same period in 2024. Factors contributing to the change in research and development costs included both an increase from depreciation expense and a decrease due to stock-based compensation. The increase in depreciation expense was a result of EIC being place into service in 2024. This accounted for an increase in depreciation expense of $0.5 million for the period ending March 31, 2025 compared to the same period in 2024. We expect depreciation expense to continue to increase as we place the remainder of the EIC and other construction in progress into service within the year. This increase in depreciation expense was partially offset by a decrease in stock-based compensation expense as a result of forfeiture of unvested stock options.
Current report
Selling, general and administrative expenses largely consisted of employee compensation and personnel related costs for our administrative functions as well as costs driven by insurance and regulatory requirements. Selling, general and administrative expenses decreased $0.2 million in the three months ended March 31, 2025 compared to the same period in 2024. This was primarily due to the strategic decision to reduce outside contractor and external consultant support in an effort to reduce costs.
Current report
Overall, we expect operating expenses for the remainder of the year to slightly increase on a quarterly basis compared to the expenses incurred in the current quarter as we continue to execute on our objectives.* *
Current report
Nonoperating Income and Expense
Current report
Nonoperating income and expense was $8.9 million for the three months ended March 31, 2025, an increase of $4.3 million compared to nonoperating income and expense of $4.6 million for same period in 2024. This increase was primarily driven by the change in the fair value of our warrant liabilities. The change in fair value drove a gain recognition of $5.9 million in the three months ended March 31, 2025, partially offset by a decrease in interest earned from our available-for-sale securities. For the three months ended March 31, 2025, we earned $3.6 million of interest income compared to $5.1 million of interest income for the same period in 2024 due to the lower amounts invested.
Current report
As of March 31, 2025 total liquidity, which includes all cash and cash equivalents as well as our available-for-sale securities,
Current report
was $299.6 million, a decrease of $27.9 million compared to December 31, 2024. Additionally, we had contract receivables of $2.2 million and total current liabilities of $10.4 million.
Current report
Cash used in operating activities decreased $2.8 million in the three months ended March 31, 2025 compared to the three months ended March 31, 2024. This decrease was primarily driven by lower payments to Dahae, a strategic partner serving as installer of the SK On line, partially offset by an annualized increase in employee compensation costs. Payments to Dahae were $5.8 million in the three months ended March 31, 2024 compared to $1.1 million in the three months ended March 31, 2025. The largest use of operating cash in the three months ended March 31, 2025 was employee compensation, including the payout of annual performance-based incentive compensation, which together were $14.2 million. The remaining cash used in operating activities for the three months ended March 31, 2025 were costs to operate our facilities, purchases of materials and supplies, and hazardous waste removal. Additionally, we received $3.0 million of cash from our partners in the three months ended March 31, 2025, compared to $2.7 million of cash received from our partners in the three months ended March 31, 2024. We anticipate cash used in operations to slightly increase on a quarterly basis for the remainder of the year, but expect additional cash receipts from partners which will partially offset that increase.
Current report
Cash provided by investing activities increased $16.9 million in the three months ended March 31, 2025 compared to the three months ended March 31, 2024 primarily due to increased proceeds from purchases and sales of available-for-sale securities, which provided $33.3 million of proceeds in the three months ended March 31, 2025 compared to $17.9 million of proceeds in the three months ended in March 31, 2024. This increase was due to the timing of the individual security maturity date and the sale of more securities in the three months ended March 31, 2025 compared to the same period in 2024.
Current report
Cash spent on capital expenditures was $2.4 million in the three months ended March 31, 2025, compared to $4.0 million in the three months ended March 31, 2024. Capital expenditures were primarily for the construction of our continuous electrolyte production pilot line which was partially offset by cash received from the DOE under the Assistance Agreement. We anticipate cash used in investing for capital expenditures to increase as we continue to make progress toward installation of the continuous electrolyte production pilot line.
Removed paragraphs (14)
Previous report
Solid Power is developing solid-state battery technology for the EV market and additional markets served by battery manufacturers.
Previous report
Additionally, we are developing solid-state cells with our electrolyte, with the aim of commercializing our technology by selling electrolyte and licensing cell designs. This approach minimizes capital requirements, unlike other battery manufacturers who require significant cell production facilities and equipment. This strategy also allows us to focus on our core strengths of electrolyte production and solid-state technology development.
Previous report
Currently, we produce electrolyte on pilot manufacturing lines. The electrolyte is used for cell development and customer sampling. We also develop cells on two pilot lines, producing multiple cell sizes to both support our partners and refine cell designs.
Previous report
We have partnered with industry leaders BMW, Ford Motor Company, and SK On and will continue to work closely with our partners to improve cell designs, improve our electrolyte, and ultimately commercialize our technology. Our products are currently in the development stage and require further research and improvement before we can commercialize our technology.
Previous report
Recent Business Highlights
Previous report
During the three and nine months ended September 30, 2024, we increased capital and operational investments centered on expanding our electrolyte capabilities and advancing our cell designs. Our capital investments included the addition of an EIC to improve and test electrolyte manufacturing processes. Our operational investments were focused on the strategic enhancement of our research and development workforce as well as efforts to improve electrolyte and cell performance. Through the remainder of 2024, we expect the trend of increased capital and operational investments to continue for our production capabilities, partnership development, and Korean operations as we execute our development strategy according to our current outlook.
Previous report
The following table is a consolidated summary of our operating results for the periods indicated:
Previous report
NM = Not meaningful
Previous report
The key factors driving results of operations for the three and nine months ended September 30, 2024, including the increased operating loss as compared to the corresponding periods in 2023, were as follows:
Previous report
As of September 30, 2024, contract receivables were $2.6 million, deferred revenue was $6.7 million, and total current liabilities were $20.3 million. As of December 31, 2023, contract receivables were $1.6 million, deferred revenue and deferred revenue from related parties was $0.8 million, and total current liabilities were $15.9 million.
Previous report
Stock Repurchase Program
Previous report
On January 23, 2024, we announced that our Board approved a stock repurchase program authorizing us to purchase up to $50 million of our outstanding common stock. Under the stock repurchase program, we may purchase shares of our common stock from time to time until the repurchase program expires on December 31, 2025. The shares of common stock may be purchased on the open market, in unsolicited negotiated transactions, or in any manner that complies with the provisions of Rule 10b-18 of the Exchange Act. Management’s decision to repurchase shares of common stock will depend on a number of factors, such as the price of the common stock, economic and market conditions, and corporate and regulatory requirements. During the nine months ended September 30, 2024, we repurchased 5,000,000 shares of common stock at an average price of $1.64 per share for an aggregate cost of approximately $8.36 million.
Previous report
Cash used in operating activities decreased for the nine months ended September 30, 2023 as compared to the same period in 2024. The decrease was largely attributable to increased depreciation and amortization expenses as a result of placing SP2 in service, increased deferred revenue as a result of receipt of payment related to a collaborative arrangement ahead of services provided, and decreased contract receivables as a result of receipt of payment from our collaborative arrangements associated with completion of milestones. This benefit was partially offset by increased operating losses, which were driven by a continued increase in research and development and selling, general and administrative costs.
Previous report
Cash provided by investing activities increased for the nine months ended September 30, 2023 as compared to the same period in 2024 primarily due to the net effect of proceeds from the sales of marketable securities and decreased capital expenditures for property, plant and equipment.
Reworded paragraphs (15)
Previous wording
The following Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with the consolidated financial statements and related notes thereto included elsewhere in this Report. The following discussion contains forward-looking statements that reflect future plans, estimates, beliefs, and expected performance. For additional discussion, see “Cautionary Note Regarding Forward-Looking Statements” above. The forward-looking statements are dependent upon events, risks, and uncertainties that may be outside of our control. Our actual results could differ materially from those discussed in these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those identified below and those discussed elsewhere in this Report and under “Part I, Item 1A. Risk Factors” of our 2023 Form 10-K,as such descriptions may be updated or amended in future filings we make with the SEC. Unless indicated otherwise, the following discussion and analysis of results of operations and financial condition and liquidity relates to our current continuing operations and should be read in conjunction with the consolidated financial statements and notes thereto of this Report and our 2023 Form 10-K. We do not undertake, and expressly disclaim, any obligation to publicly update any forward-looking statements, whether as a result of new information, new developments, or otherwise, except to the extent that such disclosure is required by applicable law.
Current wording
The following Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with the consolidated financial statements and related notes thereto included elsewhere in this Report. The following discussion contains forward-looking statements that reflect future plans, estimates, beliefs, and expected performance. For additional discussion, see “Cautionary Note Regarding Forward-Looking Statements” above. The forward-looking statements are dependent upon events, risks, and uncertainties that may be outside of our control. Our actual results could differ materially from those discussed in these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those identified below and those discussed elsewhere in this Report and under “Part I, Item 1A. Risk Factors” of the 2024 Form 10-K,as such descriptions may be updated or amended in future filings we make with the SEC. Unless indicated otherwise, the following discussion and analysis of results of operations and financial condition and liquidity relates to our current continuing operations and should be read in conjunction with the consolidated financial statements and notes thereto of this Report and the 2024 Form 10-K. We do not undertake, and expressly disclaim, any obligation to publicly update any forward-looking statements, whether as a result of new information, new developments, or otherwise, except to the extent that such disclosure is required by applicable law.
Previous wording
Our core technology is a proprietary sulfide solid electrolyte material, which replaces the liquid or gel electrolyte used in traditional lithium-ion batteries. We believe that our electrolyte can improve driving range, battery life, safety performance, and battery costs.
Current wording
Solid Power is a U.S.-based leader in solid-state battery technology and manufacturing processes. Our core technology is a sulfide-based solid electrolyte material, which replaces the liquid or gel electrolyte used in traditional lithium-ion battery cells. We believe our electrolyte technology has the potential to enable a step-change improvement in battery cell performance beyond what is currently achievable in conventional lithium-ion battery cells, including improved energy density, battery life, and safety performance. We are currently targeting the battery electric vehicle market due to the size and perceived demand for next generation battery technology but believe our technologies can have a broader application as they mature.
Previous wording
We are a research and development-stage company and have not generated significant revenue through the sale of our electrolyte or licensing of our cell designs. Our ability to commercialize our products depends on several factors that present significant opportunities but also pose material risks and challenges, including those discussed in the “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements,” sections of this Report, which are incorporated by reference.
Current wording
We are a research and development-stage company and have not generated cash flows through the sale of our electrolyte or licensing of our cell designs to adequately cover our costs. Our ability to commercialize our products depends on several factors that present significant opportunities but also pose material risks and challenges, including those discussed in the “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” sections of this Report, which are incorporated by reference.
Previous wording
Prior to reaching commercialization, we must improve our products to ensure they meet the performance and safety requirements of our customers. We also will have to continue to negotiate licensing and supply contracts with our customers on terms and conditions that are mutually acceptable. To satisfy anticipated demand, we will need to scale production of our electrolyte. All of these will take time and affect our operating results. Since many factors are difficult to quantify, actual operating results may be different than currently anticipated.
Current wording
Prior to reaching commercialization, we must improve our products to ensure they meet the performance requirements of our customers. We also will have to negotiate commercial agreements with our customers on terms and conditions that are mutually acceptable. To satisfy anticipated demand, we will need to scale production of our electrolyte. All of these will take time, require capital, and affect our operating results. Since many factors are difficult to quantify, our actual operating results may be different than currently anticipated.
Previous wording
Revenue generated to date has primarily come from performance on research and development licensing agreements and government contracts. We will need to continue to deploy substantial capital to expand our production capabilities and engage in research and development programs. We also expect to continue to incur significant administrative expenses as a publicly traded company.
Current wording
Revenue generated to date has primarily come from performance on research and development licensing agreements, line installation agreement, and government contracts. We will need to continue to deploy substantial capital to expand our production capabilities and engage in research and development programs. We also expect to continue to incur administrative expenses as a publicly traded company.
Previous wording
We currently conduct our business through one operating segment. As a research and development company with no commercial operations, our activities to date have been limited and were conducted primarily in the United States. Historical results are reported under GAAP and in U.S. dollars.
Current wording
We currently conduct our business through one operating segment and one reportable segment. As a research and development company with no commercial operations, our activities to date have been limited and were conducted primarily in the United States and the Republic of Korea. Our historical results are reported under U.S. generally accepted accounting principles and in U.S. dollars.
Previous wording
Comparison of the Three and Nine Months Ended September 30, 2024 to the Three and Nine Months Ended September 30, 2023
Current wording
Comparison of the Three Months Ended March 31, 2025 to the Three Months Ended March 31, 2024
Previous wording
The sale of equity has historically been our primary source of cash, with a smaller portion of cash coming from performance milestones onour JDAs and government contracts.
Current wording
The sale of equity has historically been our primary source of cash, with a smaller portion of cash coming from achievement of performance milestones under agreements with our partners, government contracts, and interest earned on available-for-sale securities.
Previous wording
Short-term liquidity requirements include operating and capital expenses needed to further research and development programs and to further optimize pilot production lines and electrolyte manufacturing capabilities. We anticipate that our most significant capital expenditures for the remainder of 2024 will relate to enhancing the capabilities of our electrolyte production facility, including completion of an EIC that we expect to place fully in service by the end of 2024. We expect to fund our short-term liquidity requirements through our cash on hand and other liquid assets.
Current wording
Our short-term liquidity requirements include operating and capital expenses needed to further our research and development programs and to install our continuous electrolyte production pilot line. We anticipate that our most significant capital expenditures for the remainder of the year will relate to facility engineering and construction of our continuous electrolyte production pilot line as well as improvements to our cell development capabilities.
Previous wording
We believe that our cash on hand is sufficient to meet our operating cash needs and working capital and capital expenditure requirements for a period of at least the next 12 months and longer term until adequate cash flows from licensing activities and/or electrolyte sales can be generated. We also believe that we have adequate cash on hand for our stock repurchase program should we choose to execute additional share repurchases.
Current wording
We believe that our cash on hand is sufficient to meet our operating cash needs and working capital and capital expenditure requirements for a period of at least the next 12 months. We also believe that we have adequate cash on hand for our stock repurchase program should we choose to execute additional share repurchases prior to the program’s expiration on December 31, 2025.
Previous wording
However, we may require additional liquidity sources if there are material changes to our business conditions or other developments, including changes to our operating plan, development progress, or negotiations with OEMs, cell manufacturers, or other suppliers, market adoption of EVs, supply chain challenges, competitive pressures, inflation, and regulatory developments. To the extent that our resources are insufficient to satisfy our cash requirements, we may need to seek additional equity or debt financing. We also may opportunistically seek to enhance our liquidity through equity or debt financing, if such financing becomes available on terms that we consider favorable. If financing is not available, or if the terms of financing are unfavorable, we may be forced to take actions to reduce our capital or operating expenditures, which may adversely affect our development, business, operating results, financial condition and prospects.
Current wording
Longer term, we may require additional liquidity prior to being able to generate adequate cash flows from electrolyte sales and/or licensing activities. We also may require funding if there are material changes to our business conditions or other developments, including changes to our operating plan; development progress or delays; negotiations with OEMs, cell manufacturers, or other customers; market adoption of EVs; supply chain challenges; competitive pressures; government regulations, including tariffs; and inflation. To the extent that our resources are insufficient to satisfy our cash requirements, we may need to seek equity or debt financing. We also may opportunistically seek to enhance our liquidity through equity or debt financing, if such financing becomes available to us on terms that we consider favorable. If financing is not available, or if the terms of financing are less desirable
Previous wording
Cash provided by (used in) financing activities:
Current wording
Cash used in financing activities:
Previous wording
Cash used in financing activities for the nine months ended September 30, 2024 was predominantly related to the effect of cash utilized for the stock repurchase program and withholding of employee taxes related to stock-based compensation. These payments were offset by proceeds from the issuance of shares of common stock under the ESPP and exercise of stock options. Cash provided by financing activities for the nine months ended September 30, 2023 was primarily from the exercise of stock options and proceeds from the sale of common stock under the ESPP, partially offset by cash paid for withholding of employee taxes related to stock-based compensation and payments on finance lease liabilities.
Current wording
Cash used in financing activities decreased $4.9 million in the three months ended March 31, 2025 compared to the three months ended March 31, 2024. This decrease was primarily related to the repurchase of $4.9 million of our common stock under our stock repurchase program in the three months ended March 31, 2024 and no repurchases in the three months ended March 31, 2025. Cash used in financing activities for the three months ended March 31, 2025 was predominantly cash paid for withholding of employee taxes related to stock-based compensation and payments on finance lease liabilities, partially offset by proceeds from the exercise of stock options.
Previous wording
There were no significant and material changes in our critical accounting policies and use of estimates during the nine months ended September 30, 2024 as compared to those disclosed in “Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Estimates” in our 2023 Form 10-K.
Current wording
Except as set forth below, there have been no significant and material changes in our critical accounting policies and use of estimates during the three months ended March 31, 2025 as compared to those disclosed in “Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Estimates” in the 2024 Form 10-K.
Previous wording
See Note 2 of our unaudited financial statements included in this Report as well as Note 2 of our audited financial statements included in our 2023 Form 10-K for more information.
Current wording
See Note 2 of our unaudited financial statements included in this Report as well as Note 2 of our audited financial statements included in the 2024 Form 10-K for more information.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
than we expect, we may be forced to take actions to reduce our capital or operating expenditures, which may adversely affect our development, business, operating results, financial condition and prospects.