Introduction
Amprius Technologies, Inc. is a pioneering force in the silicon anode battery space, developing, manufacturing, and marketing high-energy density and high-power density silicon anode batteries for a wide range of electrified mobility applications, including the aviation and electric vehicle (EV) industries. With over a decade of experience and a track record of commercial success, Amprius is at the forefront of battery technology innovation, delivering unparalleled performance that is reshaping the future of electric transportation.
Company History and Development
Founded in 2008, Amprius initially focused on research and development of its proprietary silicon anode structure, designed to enable higher energy density, higher power density, and faster charging capabilities compared to traditional lithium-ion batteries. The company's journey took a significant turn in 2018 when it began commercial battery production, primarily serving customers in the aviation industry. Amprius' batteries quickly gained recognition for their superior performance, showcasing capabilities that set new standards in the industry.
As Amprius grew, it faced challenges common to early-stage technology companies, including the need to scale manufacturing capabilities and achieve cost targets. In 2020, the company encountered a significant setback when it experienced a ransomware incident that required substantial resources to address. Despite these obstacles, Amprius remained committed to its technological leadership and customer relationships, successfully expanding its customer base to over 175 by 2023.
A pivotal moment in Amprius' history came in September 2022 when the company completed a business combination with Kensington Capital Acquisition Corp. IV, becoming a publicly traded company on the New York Stock Exchange under the ticker symbol AMPX. This strategic move provided Amprius with additional capital to support its growth initiatives, including the expansion of its manufacturing capacity in Fremont, California, and the exploration of a large-scale facility in Colorado.
Product Portfolio and Performance
Amprius' battery products, marketed under the SiMaxx and SiCore brands, have captured the attention of the industry, offering up to 450 Wh/kg and 1,150 Wh/L energy density, 10C power capability, and the ability to charge from 0% to 80% in just 6 minutes. These exceptional performance characteristics, coupled with a wide operating temperature range of -30°C to 55°C and robust safety features, have made Amprius' batteries the preferred choice for numerous customers seeking to push the boundaries of electric mobility.
Amprius manufactures and markets its SiMaxx batteries, which are based on its proprietary silicon anode technology, at its headquarters in Fremont, California. The company believes that the demand for its SiMaxx batteries exceeds its current manufacturing capacity and is in the process of expanding its Fremont facility to scale up SiMaxx production to up to 2 MWh, about 10 times its 2023 production capacity.
In addition to SiMaxx, Amprius offers SiCore batteries, developed in collaboration with Berzelius Nanjing Co. Ltd., a former subsidiary of Amprius' former parent company, Amprius Holdings. The company has an exclusive supply agreement with Berzelius to purchase its proprietary silicon anode materials in the United States, Canada and Mexico. Amprius also has supply agreements with three toll manufacturers to access over 500 MWhs of SiCore battery production capacity in a wide range of form factors including pouch, large format up to 100Ah, and cylindrical cells.
Financials and Growth
The company's remarkable progress is evident in its financial results. For the nine months ended September 30, 2024, Amprius reported revenue of $13.54 million, a significant increase from the $5.11 million recorded in the same period of the prior year. This growth trajectory was driven by a combination of new customer acquisitions and continued demand from existing partners, including AALTO/Airbus, AeroVironment, Teledyne FLIR, Kraus Hamdani, and BAE Systems.
While Amprius' revenue grew by an impressive 165% year-over-year, the company continued to invest in its long-term growth, resulting in a net loss of $33.25 million for the nine-month period. This strategic investment in research and development, manufacturing capacity expansion, and customer engagement has laid the foundation for Amprius' future success.
For the most recent fiscal year (2023), Amprius reported revenue of $8.79 million, with a net loss of $36.78 million. Operating cash flow for 2023 was negative $25.55 million, and free cash flow was negative $43.10 million. In the most recent quarter (Q3 2024), the company reported revenue of $7.86 million, a net loss of $10.85 million, operating cash flow of negative $9.52 million, and free cash flow of negative $9.88 million.
Notably, Q3 2024 revenue increased by 181% year-over-year, driven by a $3.9 million increase in product revenue and a $1.2 million increase in development services and grant revenue.
As of September 30, 2023, Amprius had $35.05 million in cash and cash equivalents. The company's debt-to-equity ratio stood at 0.60 as of December 31, 2023. Amprius maintains a strong liquidity position with a current ratio of 3.46 and a quick ratio of 3.25 as of September 30, 2023.
Product Innovation and Customer Engagement
One of the key drivers behind Amprius' revenue growth has been the introduction of its SiCore product platform in January 2024. By leveraging a contract manufacturing strategy, the company has been able to quickly scale production and deliver large volumes of SiCore batteries to meet the rising demand from customers. This flexibility has allowed Amprius to secure several high-profile agreements, including a $20 million contract to supply 40 Ah high-performance cells for light electric vehicle applications and a letter of intent with a Fortune Global 500 technology OEM for the development of a high-energy SiCore cylindrical cell.
Amprius has also made significant strides in its technical achievements. The company has exceeded some of the initial goals set by the USABC for their EV cells, including achieving 360 Wh/kg energy density, 1,200 W/kg power density, and 90% charge in 15 minutes. Furthermore, Amprius plans to ship a new 500 Wh/kg, 1,300 Wh/L battery platform by the end of 2024, which they believe will be the best commercially available.
Manufacturing Expansion
In addition to its commercial success, Amprius has made significant strides in expanding its manufacturing capabilities. The company recently celebrated the opening of new production lines at one of its contract manufacturing partners, providing up to 800 MWh of SiCore pouch cell capacity. This expansion, combined with the ongoing ramp-up of Amprius' own 2 MW manufacturing facility in Fremont, California, positions the company to meet the growing demand for its high-performance battery solutions.
Amprius has also secured a non-binding letter of intent with a Fortune Global 500 technology OEM for a high-energy SiCore cylindrical cell that could translate into a 5-year commercial supply agreement exceeding 2 GWh. Additionally, the company has secured a development contract with another Fortune 500 company for a custom high-energy SiMaxx pouch cell, with a potential for over 1 million cells per year.
Future Outlook and Strategy
Looking ahead, Amprius remains laser-focused on innovation, customer engagement, and strategic capacity expansion. The company's plans for a GWh-scale manufacturing facility in Brighton, Colorado, although currently in the design and pre-construction phase, underscore its ambition to become a dominant force in the electrified mobility market. As Amprius navigates the complex dynamics of demand, supply, and regulatory landscapes, its unwavering commitment to delivering breakthrough battery technology and exceptional customer service will be instrumental in driving its continued growth and success.
The company is well-positioned to capitalize on several industry trends. The global drone market is projected to surge from $18 billion in 2023 to $213 billion by 2032, representing a compound annual growth rate (CAGR) of over 30%. The electric aircraft and eVTOL battery market could reach $50 billion by 2030. Additionally, the light electric vehicle market is estimated to grow at a CAGR of 9.74% from 2023 to 2032, reaching $206 billion by 2032.
Challenges and Competition
Amprius' journey has not been without its challenges, however. The company has previously identified material weaknesses in its internal control over financial reporting, which it is actively working to remediate. Additionally, Amprius operates in a highly competitive market, facing competition from both established manufacturers and new entrants developing alternative battery technologies. Navigating these obstacles while maintaining its technological edge will be crucial for Amprius as it continues to scale its business.
Conclusion
Despite these challenges, Amprius' strong customer relationships, innovative product portfolio, and strategic manufacturing initiatives position the company as a formidable player in the rapidly evolving electrified mobility landscape. As the global demand for high-performance, environmentally-friendly transportation solutions continues to rise, Amprius stands poised to capitalize on the immense opportunities ahead, powering the future of electric mobility with its cutting-edge silicon anode battery technology.
With its impressive revenue growth, expanding manufacturing capacity, and breakthrough battery performance, Amprius Technologies is well-positioned to play a pivotal role in shaping the future of electrified mobility. As the company continues to innovate and scale its operations, it will be exciting to watch how Amprius' silicon anode battery technology transforms various industries and contributes to a more sustainable transportation ecosystem.