Shares of Solid Power, Inc. (NASDAQ: SLDP) surged 5.08% in Tuesday's trading session following the release of its third-quarter 2025 financial results and announcement of a strategic partnership. The company, which specializes in developing solid-state battery technology, reported better-than-expected earnings and provided updates on its business operations.

Solid Power reported a narrower-than-anticipated loss for Q3 2025. The company posted a quarterly adjusted loss of 14 cents per share, beating analysts' expectations of a 17-cent loss. While revenue fell 19.8% year-over-year to $3.73 million, missing the $5.70 million forecast, investors seemed to focus on the company's progress in its technology development and strategic initiatives.

A key highlight from the earnings report was the announcement of a Joint Evaluation Agreement with Samsung SDI and BMW to advance the development of all-solid-state batteries. This partnership is seen as a significant step towards commercialization and validation of Solid Power's technology. Additionally, the company reported that its SK On pilot cell line remains on schedule for completion by year-end, and its continuous electrolyte production pilot line is on track for commissioning in 2026. These developments demonstrate Solid Power's commitment to driving innovation in the solid-state battery space.

Despite the revenue decline, Solid Power maintained a strong liquidity position with $300.4 million as of September 30, 2025. The company also revised its 2025 cash investment outlook to a range of $85 million to $95 million, reflecting its focus on operational efficiencies and cost reductions while continuing to invest in technology development. This fiscal discipline, combined with progress in its strategic objectives, appears to have boosted investor confidence, contributing to the stock's significant rise.