Solid Power, Inc. (SLDP) | Investment Case

1. Company Snapshot

1.a. Company Description

Solid Power, Inc.focuses on the development and commercialization of all-solid-state battery cells and solid electrolyte materials for the battery-powered electric vehicle market in the United States.The company was founded in 2011 and is headquartered in Louisville, Colorado.

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1.b. Last Insights on SLDP

Solid Power, Inc.'s recent performance was driven by the successful execution of its business strategy, as evident from its Q1 2025 earnings call. The company's CEO, John Van Scoter, highlighted the strong demand for its solid-state battery technology, which has enabled it to secure significant partnerships and collaborations. Additionally, Solid Power's focus on scaling up its manufacturing capabilities has led to improved production efficiency, further solidifying its position in the market. The company's commitment to innovation and its ability to adapt to changing market conditions have been key drivers of its recent success.

1.c. Company Highlights

Last Price	5.17
Change Percentage	-4.44%
Open	5.37
Previous Close	5.41
Market Cap ( Millions)	939
Volume	8192217
Year High	8.86
Year Low	0.68
M A 50	5.66
M A 200	3.15

FCF Yield	-8.51%
Dividend Yield	0.00%
ROE	-24.87%
Debt / Equity	2.15%
Net Debt / EBIDTA	47.91%
Price To Book	2.47
Price Earnings Ratio	-9.72
Price To FCF	-11.75
Price To sales	45.39
EV / EBITDA	-11.03

2. Solid Power's Q2 2025 Earnings: Progress Amidst Losses

Solid Power reported revenue of $7.5 million for Q2 2025, representing a 25% increase from the $6 million generated in Q1 2025. The operating loss year-to-date was $49.9 million, and the net loss was $40.5 million, or $0.22 per share. The actual EPS loss of $0.22 aligns with the expected loss per share of -$0.14 being less severe than estimate, the reported loss is -$0.22 . Capital expenditures were $5 million, primarily for the construction of the continuous electrolyte production pilot line. The company's total liquidity stood at $279.8 million as of June 30, 2025.

Publication Date: Aug -26

                                    📋 Highlights
                                    BMW Partnership Progress:
                                                Launched i7 test vehicle using Solid Power's solid-state battery cells.
SK On Pilot Line Milestone:
                                                Completed factory acceptance testing, advancing site acceptance testing plans.
Reimbursed R&D Funding:
                                                Received $3.3M from U.S. Department of Energy for electrolyte development.
Q2 Financial Performance:
                                                Revenue rose to $7.5M (up from $6M Q1), but operating loss widened to $33.4M.
Liquidity & Share Repurchases:
                                                Ended Q2 with $279.8M liquidity, repurchasing 3.3M shares for $3.6M.

                                

Operational Highlights

The company achieved significant milestones, including the completion of factory acceptance testing of the SK On pilot line, a key step under their line installation agreement. Solid Power also began working towards site acceptance testing of the line at SK On's facilities and received $3.3 million in reimbursements from the U.S. Department of Energy. As John C. Van Scoter noted, "We are steadily advancing towards our strategic objectives," highlighting the progress made in their partnership with BMW, including the introduction of the i7 test vehicle powered by Solid Power's cells and solid-state battery technology.

Valuation and Outlook

With a P/S Ratio of 40.77, the market is pricing in significant growth expectations. Analysts estimate revenue growth of 14.6% for next year. The company's current valuation metrics, including a P/E Ratio of -9.37 and an EV/EBITDA of -11.6, reflect the challenges it faces in achieving profitability. The ROE of -23.13% and ROIC of -70.38% indicate that the company is struggling to generate returns on its investments. However, the progress made in its operational goals and partnerships may help mitigate these challenges. The stock repurchase program, under which 3.3 million shares were repurchased at an average price of $1.05, totaling $3.6 million, demonstrates the company's commitment to enhancing shareholder value.

Liquidity and Capital Allocation

Solid Power ended Q2 2025 with total liquidity of $279.8 million, providing a sufficient cushion to support its operations and strategic objectives. The company's capital allocation strategy, including the repurchase of shares and investments in its pilot line, is aimed at driving growth and improving shareholder returns. With a Net Debt / EBITDA ratio of 0.24, the company's debt position is manageable, and it is well-positioned to navigate the challenges ahead.

3. NewsRoom

Financial Survey: Solid Power (NASDAQ:SLDP) vs. EVgo (NASDAQ:EVGO)

Nov -22

Source: defenseworld.net

Crude Oil Down 1%; Solid Power Shares Spike Higher

Nov -05

Source: benzinga.com

Solid Power, Inc. (SLDP) Q3 2025 Earnings Call Prepared Remarks Transcript

Nov -04

Source: seekingalpha.com

Solid Power Reports Third Quarter 2025 Results

Nov -04

Source: businesswire.com

Solid Power Partners with Samsung SDI and BMW to Advance All-Solid-State Battery Technology

Oct -30

Source: businesswire.com

Solid Power, Inc. Announces Timing of Third Quarter 2025 Earnings Release and Conference Call

Oct -21

Source: businesswire.com

Solid Power's Rise Isn't Over

Oct -15

Source: seekingalpha.com

Solid Power: No FOMO, Just Fundamentals

Oct -07

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (30.47%)

6. Segments

Solid-state Battery Technology

Expected Growth: 30.47%

Solid-state Battery Technology from Solid Power, Inc. is driven by increasing demand for electric vehicles, growing need for energy storage, and advancements in material science. The company's proprietary technology enables higher energy density, faster charging, and improved safety, positioning it for significant growth in the rapidly expanding EV and clean energy markets.

7. Detailed Products

All-Solid-State Batteries

Solid-state batteries that replace the liquid electrolyte with a solid material, enhancing safety, energy density, and charging speed.

High-Energy Density Cells

Advanced lithium-ion battery cells with high energy density, enabling longer driving ranges and improved performance.

Solid-State Battery Management Systems

Advanced battery management systems designed to optimize the performance and safety of solid-state batteries.

Lithium-Metal Anodes

High-performance lithium-metal anodes that enable higher energy density and improved battery life.

Solid-State Electrolytes

Advanced solid-state electrolytes that enhance safety, energy density, and charging speed in lithium-ion batteries.

8. Solid Power, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Solid Power, Inc. has a moderate threat of substitutes due to the presence of alternative energy storage solutions.

Bargaining Power Of Customers

Solid Power, Inc. has a low bargaining power of customers due to its strong brand reputation and limited customer concentration.

Bargaining Power Of Suppliers

Solid Power, Inc. has a moderate bargaining power of suppliers due to its dependence on a few key suppliers for critical components.

Threat Of New Entrants

Solid Power, Inc. has a high threat of new entrants due to the growing demand for energy storage solutions and the relatively low barriers to entry.

Intensity Of Rivalry

Solid Power, Inc. operates in a highly competitive industry with intense rivalry among established players, leading to a high intensity of rivalry.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	1.86%
Debt Cost	3.95%
Equity Weight	98.14%
Equity Cost	12.89%
WACC	12.72%
Leverage	1.90%

11. Quality Control: Solid Power, Inc. passed 4 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Pioneer Power Solutions

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Value: 8.0

Growth: 4.2

Quality: 6.9

Yield: 10.0

Momentum: 2.0

Volatility: 1.0

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A-Score: 4.7/10

Value: 8.0

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Volatility: 0.3

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A-Score: 4.5/10

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Volatility: 0.3

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1-Year Total Return ->

Solid Power

A-Score: 4.1/10

Value: 6.6

Growth: 3.2

Quality: 4.0

Yield: 0.0

Momentum: 10.0

Volatility: 1.0

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Value: 7.8

Growth: 2.9

Quality: 3.2

Yield: 0.0

Momentum: 4.0

Volatility: 2.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

32.60%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

12.72%

Solid Power, Inc. - US83422N1054

1. Company Snapshot

1.a. Company Description

Solid Power, Inc.focuses on the development and commercialization of all-solid-state battery cells and solid electrolyte materials for the battery-powered electric vehicle market in the United States.The company was founded in 2011 and is headquartered in Louisville, Colorado.

1.b. Last Insights on SLDP

1.c. Company Highlights

More Volatile

Weak Momentum

Average Quality

Earnings Miss

Revenues Beats

Fairly Valued

Cheaper

Stable Momentum

Revenues Miss

Earnings Beats

Average Growth

Strong Momentum

Lower Growth

2. Solid Power's Q2 2025 Earnings: Progress Amidst Losses

Operational Highlights

Valuation and Outlook

Liquidity and Capital Allocation

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (30.47%)

6. Segments

Solid-state Battery Technology

Expected Growth: 30.47%

7. Detailed Products

All-Solid-State Batteries

High-Energy Density Cells

Solid-State Battery Management Systems

Lithium-Metal Anodes

Solid-State Electrolytes

8. Solid Power, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Solid Power, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

5.17$

Current Price

5.17$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA