Solid Power (NASDAQ:SLDP) said its third-quarter efforts centered on advancing its sulfide electrolyte technology, scaling manufacturing capacity and expanding strategic relationships, while lowering its full-year cash investment outlook.
President and Chief Executive Officer John Van Scoter said the company began introducing materials in October into MOBIUS, its continuous-manufacturing pilot line formerly known as SP2.5. The company expects to complete full commissioning of the line by year-end.
MOBIUS is designed to add 45 metric tons of annual electrolyte-production capacity, lifting Solid Power’s total annual capacity to 75 metric tons, or a 150% increase. The facility is intended to demonstrate the scalability of the company’s wet-process manufacturing technology as it moves from batch production to continuous production.
MOBIUS commissioning and scale-up plans
Van Scoter said the company is taking a stepwise approach to commissioning MOBIUS. The line includes four unit processes, which Solid Power plans to validate individually before running material continuously through the full production line.
“I would expect in the coming month that we’ll have the unit processes largely checked out and spend the balance of the year around running material through the full line,” Van Scoter said in response to an analyst question.
Solid Power expects MOBIUS to become the core of its electrolyte-production operations. The company plans to continue operating its existing batch line as long as demand remains for its output, while seeking to transition customers to material produced on MOBIUS once the line is commissioned and capable of demonstrated nameplate production.
The company said it will begin the customer requalification process in 2027. Van Scoter noted that none of the new MOBIUS capacity is currently committed under a supply agreement. Solid Power’s existing agreement with SK On, announced in 2024, covers eight metric tons and is being supplied largely through the batch process.
Management said its wet-process approach uses precursors and solvents at the beginning of the manufacturing line and is expected to offer capital-expenditure and operating-cost advantages relative to dry-process approaches used by competitors. However, Van Scoter said it is too early to quantify cost-per-unit or yield improvements from MOBIUS until the line has been fully commissioned and its nameplate capacity demonstrated.
The company views MOBIUS as a stepping stone toward a potential 500-metric-ton annual production facility in South Korea. Van Scoter said the proposed facility would represent a 10-fold scale-up from MOBIUS and that the continuous-flow process provides a foundation for that expansion.
Korean joint-venture discussions continue
During the quarter, Solid Power continued discussions with battery-materials manufacturers about a possible joint venture in South Korea for commercial-scale electrolyte production. The company said it is in advanced discussions with two potential partners and is working to reach an agreement before the end of 2026, though Van Scoter cautioned that large transactions can be delayed.
“We’re trying like heck to put something out, get it put together, but sometimes these big deals do move to the right,” Van Scoter said.
Solid Power also supplied electrolyte to Samsung SDI and SK On during the quarter to support their development work. The company said customer progress on cell designs will be a key determinant of demand and shipment volumes.
Separately, Solid Power completed stage two of its ISO 9001 certification process and said it remains on track to receive certification by year-end. Management said the certification is intended to strengthen process control, traceability, documentation and repeatable quality as the company prepares for commercial supply.
New-market discussions remain early stage
While electric vehicles remain Solid Power’s “North Star,” Van Scoter said the company is exploring potential uses for all-solid-state batteries in humanoid robotics, drones and defense applications. The company has entered collaboration discussions with potential partners to evaluate its sulfide electrolyte in those markets.
Van Scoter characterized those discussions as early stage, saying Solid Power is between the first and second innings of engagement with humanoid and defense applications. He said those markets could move faster than automotive because their qualification cycles may be shorter, potentially providing validation points and modest medium-term revenue.
Management said it is concentrating on applications with requirements that align with EVs, including energy density, safety and cycle life. Van Scoter added that Solid Power has been spending time educating original equipment manufacturers in these emerging markets about the potential benefits of all-solid-state batteries, including potential weight-and-balance advantages for humanoids and payload benefits for military applications.
Quarterly results and cash outlook
For the third quarter, Solid Power reported $1.2 million in revenue and grant income, primarily driven by a U.S. Department of Energy assistance agreement that funds a portion of MOBIUS construction. Year-to-date revenue and grant income totaled $4 million.
- Operating expenses were $31.1 million, compared with $30 million in the second quarter.
- Operating loss was $29.8 million.
- Net loss was $24.4 million, or $0.11 per share.
- Capital expenditures totaled $4.7 million, mainly for MOBIUS construction.
- Cash investment, defined as cash used in operations and capital expenditures, was $21.5 million during the quarter and $56.6 million year to date.
Chief Financial Officer Linda Heller said Solid Power ended the quarter with $397.6 million in total liquidity, $6.2 million in contract assets and accounts receivable, and $18.8 million in total current liabilities. The company reported no debt.
Solid Power reduced its expected 2026 cash investment to $75 million to $85 million, from its previous outlook of $85 million to $100 million. Heller attributed the improvement to production-cost reductions, disciplined spending, renegotiated supplier contracts and capital-expenditure efficiencies.
Heller said fourth-quarter cash investment can vary depending on the timing of DOE reimbursements, vendor payments and equipment-completion milestones. The company plans to provide its 2027 cash investment outlook during its fourth-quarter 2026 earnings call.
For the remainder of 2026, Solid Power said it will focus on completing MOBIUS commissioning, advancing the potential Korean joint venture, obtaining ISO 9001 certification and supporting customer and collaborator development programs.
About Solid Power (NASDAQ:SLDP)
Solid Power, Inc is a battery technology company that develops all-solid-state rechargeable batteries and the materials used to manufacture them. Its technology is designed to replace conventional liquid or gel electrolytes with solid electrolytes, with the goal of improving battery safety, energy density and performance for electric vehicles and other applications.
The company’s core products and development activities include sulfide-based solid electrolyte materials, solid-state battery cells and related manufacturing processes.
