Amprius Technologies, Inc. (NYSE:AMPX) is a leading developer, manufacturer, and marketer of high-energy density and high-power density lithium-ion batteries for a wide range of electric mobility applications, including the aviation and electric vehicle (EV) industries. The company's proprietary silicon anode technology has enabled it to create batteries with industry-leading performance characteristics, including specific energy density of up to 450 watt-hours per kilogram, volumetric energy density of up to 1,300 watt-hours per liter, 10C power capability, and fast charging rates of 0% to 80% in approximately six minutes.

Business Overview

Amprius has been at the forefront of silicon anode battery technology for over a decade, amassing a strong patent portfolio of over 80 issued patents and patent applications. The company's two primary battery product platforms, SiMaxx and SiCore, leverage this extensive research and development to deliver unparalleled performance for electric mobility applications.

The SiMaxx platform represents Amprius' highest energy density offering, catering to customers with the most demanding requirements in terms of range and endurance. In contrast, the SiCore platform is designed to balance high energy density with extended cycle life, making it well-suited for applications such as e-bikes and other micromobility solutions.

Amprius' batteries have been validated and adopted by over 100 customers, including industry leaders in the aviation sector such as AALTO Airbus, AeroVironment, BAE Systems, the Korean Aerospace Research Institute, Kraus Hamdani Aerospace, and Teledyne FLIR. From inception through March 31, 2024, the company has shipped over 50,000 batteries, enabling mission-critical applications for its customers.

Financials

Amprius' financial performance in 2024 has been marked by significant growth in revenue, which reached $8.8 million for the full year, up from $0.7 million in the prior year. This growth was driven by a 397% increase in product revenue during the first quarter of 2024, reaching $2.3 million. The company's net loss for the year was $36.8 million, with an operating cash outflow of $25.6 million and free cash outflow of $43.1 million.

In the first quarter of 2024, Amprius reported revenue of $2.3 million, a significant increase from $0.7 million in the same period of the prior year. This growth was primarily attributable to a 147% sequential increase in product revenue, which accounted for the entirety of the company's Q1 2024 revenue. Gross margin for the quarter was negative 190%, compared to negative 518% in the prior year period, as the company continued to invest in scaling its manufacturing capabilities.

Operational Highlights

Amprius made significant progress in expanding its manufacturing capacity during the first quarter of 2024. The company completed the qualification process for its centrotherm machine, a critical piece of equipment used in the silicon anode fabrication process at its Fremont, California facility. Amprius remains on track to achieve a 2 MWh production run rate at the Fremont facility by the end of 2024, representing a tenfold increase from its 2023 exit capacity.

In addition to its in-house manufacturing efforts, Amprius has also secured 100 MWh of toll manufacturing capacity for its SiCore battery platform, enabling the company to rapidly scale production and meet the growing demand from its customer base. This toll manufacturing agreement provides Amprius with the flexibility to focus on expanding its SiMaxx production capabilities at the Fremont facility while leveraging existing industry capacity to serve the SiCore market.

Furthermore, Amprius has made substantial progress on the design and construction of its planned GWh-scale manufacturing facility in Brighton, Colorado. As of the end of the first quarter, the company had completed 30% of the construction drawings and specifications for the new facility, and it is actively pursuing the necessary regulatory approvals and permits to commence construction.

Guidance and Outlook

Amprius expects to spend an additional $1 million to $2 million on equipment to support the 2 MWh production line expansion at its Fremont facility, including the necessary tools to have its cathode line operational by the fourth quarter of 2024. The company is also finalizing the design work for its Colorado facility and plans to provide a construction cost forecast once the plans are completed.

To support its strategic growth initiatives, Amprius has filed a shelf registration on Form S-3 and established a new at-the-market (ATM) facility for up to $100 million. Subsequent to March 31, 2024, the company has raised gross proceeds of approximately $2.1 million through the sale of 1 million shares under the ATM program.

Risks and Challenges

Amprius faces several risks and challenges as it continues to scale its business. The company's ability to successfully develop and implement its high-volume manufacturing capabilities is critical to its long-term success, and any delays or setbacks in this process could adversely impact its financial performance and growth prospects.

Additionally, the battery market is highly competitive, with both new entrants and established players vying for market share. Amprius must continue to innovate and maintain its technological edge to stay ahead of the competition and meet the evolving needs of its customers.

Regulatory changes, supply chain disruptions, and macroeconomic factors such as inflation and geopolitical tensions also pose risks to Amprius' business. The company must navigate these challenges while ensuring the safety and reliability of its products, which are essential for mission-critical applications in the aviation and EV industries.

Conclusion

Amprius Technologies is at the forefront of the silicon anode battery revolution, offering industry-leading performance characteristics that are poised to transform the electric mobility landscape. The company's strong customer base, robust product pipeline, and ambitious manufacturing expansion plans position it well to capitalize on the growing demand for high-energy density and high-power density batteries.

Despite the challenges it faces, Amprius' commitment to innovation and its proven track record of commercial success make it a compelling investment opportunity for those seeking exposure to the rapidly evolving electric mobility market. As the company continues to execute on its strategic initiatives, investors should closely monitor Amprius' progress in scaling its manufacturing capabilities, diversifying its customer base, and maintaining its technological edge in the highly competitive battery industry.