8-K: Solid Power, Samsung SDI, BMW Partner on Solid-State Batteries

Solid Power, Samsung SDI, and BMW Group have entered a Joint Evaluation Agreement to develop and validate all-solid-state battery technology for demonstration vehicles.

Summary

• Solid Power Operating, Inc., a subsidiary of Solid Power, Inc., has entered into a Joint Evaluation Agreement with BMW AG and Samsung SDI Co., Ltd. on October 27, 2025.
• The agreement outlines a two-phase cooperation, starting with Phase 1, an 'Evaluation Project', where Solid Power will provide sulfide-based solid electrolyte to Samsung SDI.
• Samsung SDI will use Solid Power's electrolyte to fabricate separator and/or catholyte and build cells, subject to achieving specific technical requirements set forth in Annex 1 and Annex 2.
• These cells will then be tested by Samsung SDI, with performance parameters and requirements to be agreed upon by BMW and Samsung SDI.
• Successful completion of Phase 1 may lead to Phase 2, where the parties may negotiate a subsequent agreement for the development and supply of all-solid-state battery (ASSB) cells for integration into a demonstration vehicle.
• BMW Holding B.V., an affiliate of BMW, has been granted the right to nominate a director for election to Solid Power's Board of Directors and to designate a non-voting observer to Board and committee meetings.
• Samsung SDI will bear the costs for material production and shipment of Solid Power's electrolyte, while each party will otherwise bear its own costs associated with the agreement.
• Intellectual property generated solely by one party remains with that party, while joint work results and foreground IP will be jointly owned by the creating parties.
• BMW and Samsung SDI grant Solid Power a non-exclusive, perpetual, irrevocable, transferable, royalty-free, worldwide license to use feedback concerning Solid Power's electrolyte, with restrictions against use by competitors.

Sentiment

Score: 8

Explanation: The agreement represents a significant positive development for Solid Power, securing partnerships with two major global players (BMW and Samsung SDI) for the evaluation and potential commercialization of its core technology. This provides strong validation and a clear path forward, despite the early stage of the evaluation.

Positives

• Secured a significant strategic collaboration with two major global industry leaders, BMW (automotive OEM) and Samsung SDI (Tier 1 battery manufacturer), validating Solid Power's technology.
• The agreement provides a clear pathway for the evaluation and potential commercialization of Solid Power's sulfide-based solid electrolyte technology in next-generation all-solid-state batteries.
• BMW's right to nominate a director to Solid Power's board and designate an observer indicates a deeper strategic alignment and commitment from a key automotive partner.
• The collaboration supports Solid Power's business model of manufacturing and selling electrolyte to cell manufacturers and OEMs, rather than becoming a commercial battery manufacturer itself.
• The partnership aims to develop ASSB cells for a demonstration vehicle, a crucial step towards widespread adoption of the technology.

Negatives

• Phase 2, which involves commercial development and supply, is discretionary and not legally binding, meaning it may not proceed if Phase 1 is not deemed successful.
• Solid Power's electrolyte is provided 'AS IS' without any warranty, and Samsung SDI assumes all liability for damages arising from its use or misuse.
• The partnerships are non-exclusive, meaning Solid Power can pursue other collaborations, but also that BMW and Samsung SDI are not exclusively tied to Solid Power's technology.
• The agreement does not specify any immediate financial commitments or revenue streams for Solid Power beyond the cost allocation for electrolyte shipment.

Risks

• Uncertainty of the success of research and development efforts, including the ability to achieve required technological objectives and commercialize technology ahead of competitors.
• Status as a research and development stage company with a history of financial losses and an expectation of incurring significant expenses and continuing losses for the foreseeable future.
• Risks related to the non-exclusive nature of partnerships, the ability to secure new business relationships, and managing existing relationships effectively.
• Ability to negotiate and execute commercial agreements with partners and customers on commercially reasonable terms.
• Broad market adoption of electric vehicles (EVs) and other technologies where Solid Power's technology could be deployed.
• Ability to attract and retain executive officers, key employees, and other qualified personnel.
• Ability to protect and maintain intellectual property, including in jurisdictions outside of the United States.
• Delays in the construction and operation of facilities required for short-term research and development and long-term electrolyte production.
• Changes in applicable laws or regulations, information technology infrastructure, data security breaches, and other economic, business, or competitive factors.

Future Outlook

The parties aim to develop and supply all-solid-state battery (ASSB) cells for integration into a demonstration vehicle, with ASSB technology having the potential to offer improved energy density, battery life, and safety performance by replacing liquid electrolytes with solid materials. Solid Power endeavors to be a leading producer and distributor of sulfide-based solid electrolyte material for powering EVs and other applications.

Management Comments

• John Van Scoter, President and CEO of Solid Power: "We are excited to partner with Samsung SDI and BMW to progress the development of all-solid-state batteries... Our solid electrolyte technology is designed for stability and conductivity, and by working closely with global leaders in automotive and battery innovation, we strive to bring ASSB technology closer to widespread adoption."
• Martin Schuster, Vice President Battery Cell and Cell Module at the BMW Group: "With Samsung SDI joining our partnership with Solid Power, we gain significant momentum on our path advancing the development of new battery cell technologies. This global collaboration is another proof point of our overarching goal: to be always in a position to offer our customers state of the art battery technology."
• Stella Joo-Young Go, Executive Vice President of ASB Commercialization Team at Samsung SDI: "Technological competitiveness in batteries would ultimately lead to innovation in electric vehicles... Samsung SDI will work closely with strategic partners such as BMW and Solid Power to take the lead in commercialization of ASSB."

Industry Context

This collaboration signifies a major step in the global race to develop and commercialize next-generation battery technology, specifically all-solid-state batteries (ASSB). The partnership brings together a specialized solid-state electrolyte developer (Solid Power) with a leading automotive OEM (BMW) and a prominent battery manufacturer (Samsung SDI). This multi-party approach is common in the highly complex and capital-intensive battery development sector, aiming to leverage complementary expertise to accelerate innovation and overcome technical hurdles for advanced EV power solutions.

Comparison to Industry Standards

• The collaboration with BMW, a leading global automotive OEM, and Samsung SDI, a major global Tier 1 battery manufacturer, positions Solid Power's solid-state battery technology within a high-standard development ecosystem, aligning with the industry's pursuit of advanced battery solutions.
• This partnership indicates a strong validation of Solid Power's sulfide-based solid electrolyte technology by industry leaders, suggesting its potential to meet stringent automotive performance and safety requirements, which are critical benchmarks in the EV sector.
• While specific performance benchmarks for the cells are not disclosed in this evaluation agreement, the involvement of these prominent partners implies an alignment with the industry's goal to achieve superior energy density, battery life, and safety compared to current lithium-ion standards, which are key competitive factors in the battery market.

Corporate Governance

Stakeholder Impact

• Shareholders: Potential for increased valuation and long-term growth prospects due to validation by and collaboration with major industry players, though commercial success remains contingent on future phases.
• Employees: Continued and potentially expanded research and development activities, offering stability and opportunities in a cutting-edge technology field.
• Customers (future): Potential for advanced electric vehicles featuring improved battery performance, safety, and range.
• Partners (BMW, Samsung SDI): Strengthened strategic alliances in the development of next-generation battery technology, potentially leading to competitive advantages in the EV market.
• Creditors: Enhanced confidence in the company's strategic direction and potential for future revenue generation, which could improve creditworthiness.

Next Steps

• Solid Power to provide solid electrolyte to Samsung SDI.
• Samsung SDI to fabricate separator and/or catholyte and build cells using Solid Power's electrolyte, subject to technical requirements.
• Samsung SDI to test the built cells based on performance parameters agreed with BMW.
• Successful completion of Phase 1 (Evaluation Project) may lead to good faith negotiations for a subsequent agreement governing Phase 2, focused on development and supply of ASSB cells for a demonstration vehicle.

Key Dates

Recommendation

The Joint Evaluation Agreement with BMW and Samsung SDI is a significant positive development, providing strong validation for Solid Power's solid-state battery technology and a clear pathway towards potential commercialization. These are highly reputable partners, which de-risks the technology's acceptance. However, this is still an early-stage evaluation agreement (Phase 1), with Phase 2 being discretionary and subject to successful technical achievements. Solid Power remains a research and development stage company with expected future losses. While the long-term potential is substantial, the immediate financial impact and definitive commercial terms are not yet established. Therefore, a 'Hold' recommendation is appropriate as investors await further progress and concrete commercial agreements from this promising collaboration.

Keywords

Solid-state battery, EV battery technology, Sulfide-based solid electrolyte, BMW, Samsung SDI, Solid Power, Automotive, Battery innovation, Energy density, Battery life, Safety, Strategic partnership