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Solid Power (SLDP) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Consumer Discretionary· Aug 4, 2026

Source: earnings call transcript

Executive summary

Solid Power Q2 FY26 — Advancing Commercialization Milestones

Solid Power continued to advance its commercialization roadmap in Q2 FY26, making significant progress on manufacturing scale-up and strategic partnerships, including a prospective South Korean joint venture. Despite a non-cash revenue reversal impacting the quarter's top line, the company maintains a robust balance sheet with substantial liquidity to fund its long-term growth initiatives and technology development.

Highlights

4

  • Advanced discussions for a commercial-scale electrolyte production joint venture in South Korea, on track for announcement by year-end.

  • Continuous manufacturing pilot line installation remains on schedule, with equipment acceptance testing in Q3 FY26 and operational start-up in Q4 FY26.

  • Successfully completed Stage 1 of ISO 9001 certification process and remains on track for full certification by year-end.

  • Completed Line Installation Agreement with SK ON and received the associated milestone payment.

Concerns

3

  • Reported negative revenue of -$300,000 in Q2 FY26, impacted by a $1.2 million reversal of Q1 revenue.

  • Operating loss for the quarter was $30.3 million.

  • Net loss was $23.8 million, or $0.11 per share.

Guidance & targets

CategoryTargetConfidence
Joint Venture Announcement
Announce a joint venture
high materiality
High
Continuous Manufacturing Pilot Line Equipment Acceptance Testing
Completion of equipment acceptance testing
medium materiality
High
Continuous Manufacturing Pilot Line Operational Start-up
Plant validation and operational start-up
high materiality
High
ISO 9001 Certification
Certification expected by year-end
medium materiality
High
Continuous Manufacturing Pilot Line Output
Output from that line
high materiality
High

Deals & partnerships

Samsung SDI and BMW Joint Evaluation Agreement (Phase 1) expires end of September

Working to improve electrolyte performance and providing electrolyte shipments to support development activities. Discussions for continued collaboration are ongoing.

SK ON Line Installation Agreement

Represents a successful milestone in collaboration and execution of key customer commitments.

SK ON New collaboration agreement

Underscores growing demand for Solid Power's technology and commitment to expanding strategic partnerships.

Unnamed industry-leading company Commercial-scale electrolyte production

Advanced discussions with three parties in South Korea, with a draft term sheet under discussion with one.

Risks & headwinds

Revenue reversal from prior quarter Q2 FY26 impact

$1.2 million reversal of Q1 revenue

Mitigation:Non-cash adjustment, no associated cash outflow or obligation.

What to watch in Q3 FY26

Electrolyte production JV announcement

By year-end (Q4 FY26)
Current Draft term sheet in discussion with one party
Target JV announced

Why it matters

This joint venture is crucial for accelerating market adoption, providing manufacturing scale, and securing market access for commercial-scale electrolyte production.

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.

Find out whether SLDP delivers this. Inve re-checks your case every morning.

Q&A highlights

Inquired about equipment delivery status for the continuous line and the expected ramp-up to capacity in coming quarters.

Management confirmed all major equipment, including the rotary kiln, is in-house and being hooked up. Commissioning will start in Q4 FY26 and be completed by year-end. The line has a capacity of 45 metric tons, with output expected in Q1 FY27.

“We do not have any major equipment outstanding. The last major piece was installed. It's the rotary kiln. That was done in the May timeframe. So, So all equipment is in-house and in the process of being commissioned or hooked up, I should say. And then commissioning, as we have indicated, will start in the fourth quarter to be completed by the end of the year. The capacity for that one line is 45 metric tons once it is fully commissioned, and we expect to output from that line in the first quarter of next year.”

asked by Jacob Sekelsky · answered by John Van Scoter

2 min read 6 chapters

Detailed narrative

Electrolyte Development and Strategic Partnerships

Solid Power continued to advance its electrolyte technology, improving performance under the Joint Evaluation Agreement with Samsung SDI and BMW. The company provided electrolyte shipments to support their development activities and is optimistic about continued collaboration. Discussions are ongoing regarding the next phase of these agreements, with Phase 1 set to expire at the end of September.

Commercial-Scale Electrolyte Production Joint Venture

The company is actively pursuing a joint venture for commercial-scale electrolyte production in South Korea, engaging with three potential partners. Progress has been significant, with a draft term sheet currently under discussion with one party. Solid Power remains confident in announcing a joint venture by the end of the year, aiming to accelerate market adoption and secure manufacturing scale.

Continuous Manufacturing Pilot Line Progress

Installation of major process equipment for the continuous manufacturing pilot line, including the rotary kiln, was completed in May. The company is preparing for equipment acceptance testing, which is on track for completion in Q3 FY26, followed by plant validation and operational start-up in Q4 FY26. This line is designed to demonstrate scalability and efficiency, with an expected capacity of 45 metric tons and output starting in Q1 FY27.

Operational Excellence and ISO 9001 Certification

Solid Power successfully completed Stage 1 of its ISO 9001 certification process, with no major findings. The company is preparing for the more intense Stage 2 audit in mid-August and expects to achieve full certification by year-end. This certification will enhance quality systems, strengthen customer confidence, and support the commercial readiness of its electrolyte business.

SK ON Collaboration and New Customer Interest

The Line Installation Agreement with SK ON was successfully completed, and the associated milestone payment received. Solid Power is now negotiating a new collaboration agreement with SK ON, reflecting continued demand for its technology. Additionally, the company noted an uptick in interest from humanoid robotic companies and some defense/aerospace markets in the US for all-solid-state batteries.

Financial Performance and Liquidity

Q2 FY26 revenue was negative $300,000, impacted by a $1.2 million reversal of Q1 revenue related to a change in assumptions for SK ON milestone payments. Operating expenses remained controlled at $30 million, leading to an operating loss of $30.3 million and a net loss of $23.8 million, or $0.11 per share. The company maintains a strong financial position with $419.3 million in total liquidity and no debt.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.