Executive Summary / Key Takeaways

• Amprius Technologies is a pioneer in high-energy density silicon anode batteries, offering performance metrics (up to 500 Wh/kg, fast charging) that management believes are unmatched by commercially available alternatives, positioning it uniquely for demanding electric mobility applications like aviation and high-performance light electric vehicles.
• A strategic shift to a capital-light contract manufacturing model for its SiCore platform has enabled rapid scaling of production capacity (up to 1.8 GWh annually) and is driving significant revenue growth (383% YoY in Q1 2025), particularly in the light electric vehicle sector (25% of Q1 revenue).
• Recent large purchase orders, including a $15 million UAS contract and over $20 million in LEV contracts (expected revenue recognition by mid-2025), provide near-term revenue visibility and validate customer adoption of the SiCore platform following qualification.
• While the company has secured significant contract manufacturing capacity, the planned GWh-scale facility in Colorado is currently on hold, with scope and timing dependent on funding and market dynamics, reflecting a focus on leveraging existing capacity before committing substantial capital.
• Despite strong revenue growth and improving gross margins (SiCore is positive margin), the company continues to incur net losses and negative operating cash flow, necessitating careful capital management and successful conversion of its customer pipeline into sustained, high-volume orders to achieve profitability.

The Dawn of Silicon: Powering the Next Generation of Electric Mobility

Amprius Technologies, Inc. stands at the forefront of a fundamental shift in battery technology, pioneering the development and commercialization of high-energy density lithium-ion batteries utilizing advanced silicon anodes. With over 15 years of dedicated research and development and commercial production dating back to 2018, Amprius has positioned itself as a leader in a market segment demanding superior performance for critical applications in aviation, light electric vehicles (LEV), and potentially future electric vehicles (EVs).

The company's core innovation lies in its proprietary silicon anode technology, which offers significant advantages over conventional graphite anodes. This technology enables batteries with substantially higher energy density, allowing for longer range or lighter battery packs. It also facilitates higher power density for rapid acceleration and discharge, and crucially, supports extreme fast charging capabilities. Amprius highlights performance metrics such as up to 450 watt-hours per kilogram (Wh/kg) and 1150 watt-hours per liter (Wh/L) for its commercially available batteries, with a validated 500 Wh/kg, 1300 Wh/L platform expected to reach commercial availability. These figures represent a tangible leap over traditional batteries; for instance, the recently launched 450 Wh/kg SiCore cell offers up to 80% more energy than conventional graphite anode cells. The technology also boasts fast charging, capable of achieving 0 to 80% state of charge in approximately six minutes, and demonstrated 90% charge in 15 minutes in testing for the USABC grant program. Furthermore, Amprius batteries are designed to operate across a wide temperature range (-30°C to 55°C) and incorporate safety features, including passing the U.S. military's nail penetration test.

This technological differentiation forms the bedrock of Amprius's competitive moat. While the broader battery market is intensely competitive, featuring established giants like CATL (CATL) and BYD (BYDDY) focused on volume EV and consumer electronics markets, and other innovators like QuantumScape (QS), Enovix (ENVX), and Solid Power (SLDP) pursuing solid-state or alternative silicon approaches, Amprius believes its specific silicon anode implementation provides a unique performance edge. Management asserts that for many customers, particularly in demanding aviation and high-performance LEV applications, Amprius batteries are the only commercially available solution that meets their stringent technical and economic requirements. Amprius's portfolio includes both SiMaxx, utilizing its highest energy density silicon nanowire technology, and SiCore, a high energy/high power platform leveraging proprietary silicon anode materials developed in collaboration with Berzelius. This dual platform approach allows Amprius to offer a range of 14 SKUs tailored to diverse customer needs, from ultra-high energy density for stratospheric flight (as demonstrated by AALTO's Zephyr aircraft powered by Amprius SiMaxx cells) to high-power, fast-charging solutions for drones and LEVs.

R&D continues to be a critical focus, aiming to further improve battery life, increase energy density (exploring new cathode materials), and develop larger cell form factors necessary for broader EV adoption. These initiatives are designed to maintain Amprius's performance leadership and expand its addressable market.

Strategic Evolution and Operational Scaling

Historically, Amprius manufactured its SiMaxx batteries at its Fremont, California facility, operating at a kWh-scale. While proving the technology, this limited capacity constrained the company's ability to meet growing demand and secure larger volume orders. Recognizing this, Amprius embarked on a strategic transformation centered around scaling production capacity.

A pivotal element of this strategy is the adoption of a capital-light contract manufacturing model, primarily for the SiCore platform. Following the full commercial launch of SiCore in January 2024, Amprius established partnerships with three global contract manufacturers, securing access to significant annual production capacity, totaling up to 1.8 GWh across pouch, cylindrical, and prismatic formats by March 2025. This includes dedicated Amprius lines with capacity for 800 MWh of pouch cells and over 1 GWh of cylindrical cells annually. This approach allows Amprius to rapidly increase output without the substantial upfront capital investment required for building its own gigawatt-scale facilities, enabling it to become cost-competitive with traditional battery manufacturers for certain applications. The company is actively expanding this global contract manufacturing network, recently announcing a strategic partnership in South Korea to diversify its production footprint and address geopolitical considerations, although management noted that customer decisions are primarily driven by performance and cost, with some requests for non-China manufacturing expected in the future.

Alongside the contract manufacturing strategy, Amprius is expanding its Fremont facility to an MWh-scale, targeting a 2 MW run rate exiting 2024. This expansion focuses on optimizing SiMaxx production processes in-house. The company also leased a large premises in Brighton, Colorado, for a planned GWh-scale facility, completing pre-construction planning by December 2024. However, the scope and schedule for the Colorado build-out are currently dependent on funding availability and market dynamics, with the company exploring potential subleasing options given the available contract manufacturing capacity. This measured approach reflects a strategic decision to leverage the flexibility and lower capital intensity of contract manufacturing while monitoring market conditions before committing to a large-scale owned facility.

This strategic evolution has directly impacted Amprius's financial performance and customer engagement.

Financial Performance and Customer Traction

The shift to scaled production via contract manufacturing has fueled significant revenue growth. In the first quarter of 2025, Amprius reported total revenue of $11.3 million, a remarkable 383% increase compared to $2.3 million in the same period of 2024. For the full year 2024, revenue reached $24.2 million, a 167% increase from $9.1 million in 2023.

The increasing customer traction is evident in the growing customer base and larger purchase orders. Amprius shipped to 102 customers in Q1 2025, with 46 being new. In 2024, the company shipped to a total of 235 customers. This expansion includes significant wins in the light electric vehicle sector, which contributed approximately 25% of Q1 2025 revenue. Management noted that the shorter design cycles and drop-in compatibility of their batteries in this mature market are facilitating faster adoption.

Recent large purchase orders underscore this momentum. In February 2025, Amprius secured a $15 million purchase order from a leading Unmanned Aircraft System (UAS) manufacturer for SiCore cells, expected to ship in the second half of 2025, following a 9-month qualification process. Additionally, contracts totaling over $20 million to supply 40 Ah high-performance cells for LEV applications, signed in September 2024, are already shipping, with revenue expected to be recognized by mid-2025. The company has also signed agreements with Fortune 500 leaders, including a nonbinding LOI for a high-energy SiCore cylindrical cell for LEV with potential for over 2 GWh over 5 years, and a development contract for a small format, custom, high-energy SiMaxx pouch cell for a high-end consumer electronics product, projected to require over one million cells per year if objectives are met. These engagements highlight the potential for substantial future volume orders from Tier 1 customers.

Despite the strong top-line growth, Amprius continues to operate at a loss as it scales its business and invests in R&D and operational infrastructure. The gross loss for Q1 2025 was $2.4 million, an improvement from a $4.4 million gross loss in Q1 2024. Gross margins remain negative overall (-21% in Q1 2025), although management emphasized that the SiCore product line contributes positively to gross margin and is expected to drive overall improvement as its sales volume increases.

Operating expenses totaled $7.3 million in Q1 2025, up from $5.9 million in Q1 2024, primarily due to increased R&D headcount and higher personnel costs, as well as increased selling, general, and administrative expenses to support growth and public company requirements. The net loss for Q1 2025 was $9.4 million, compared to $9.9 million in Q1 2024.

From a liquidity perspective, Amprius held $48.4 million in cash and cash equivalents as of March 31, 2025. The company has incurred negative cash flows from operations ($14.1 million used in Q1 2025), primarily due to the net loss and changes in working capital (timing of receivables and payables), as well as personnel costs.

Net cash used in investing activities was $0.9 million in Q1 2025, down from $3.9 million in Q1 2024, reflecting the timing of Fremont expansion CapEx. Financing activities provided $8.5 million in Q1 2025, mainly from the At Market Issuance Sales Agreement (ATM), under which approximately $57.8 million remained available as of March 31, 2025.

Management believes its current cash position is sufficient to fund obligations for the next twelve months and is exploring non-dilutive funding sources, but acknowledges the need for additional capital to meet future operating and capital expenditure requirements, particularly if the Colorado facility build-out proceeds.

Outlook and Key Considerations

Management is confident in achieving revenue growth throughout 2025, anticipating sequential improvements driven by the strong customer pipeline and the increasing volume of orders for SiCore batteries enabled by the contract manufacturing capacity. The recently launched 450 Wh/kg SiCore cell is expected to be a significant growth engine. The $15 million UAS order and the remaining revenue recognition from the $20 million LEV contracts provide near-term visibility into this growth.

The strategic focus remains on technology innovation, expanding the customer base, and leveraging the gigawatt-hour scale contract manufacturing network. While the Colorado facility design is complete, the decision to proceed with construction is being carefully evaluated based on funding availability and market dynamics, including demand, supply, cost structure, government incentives, and trade tariffs. This suggests a pragmatic approach to capital deployment, prioritizing the utilization of existing, lower-CapEx capacity first.

Key risks to the investment thesis include execution risk in scaling manufacturing and optimizing processes, particularly for SiMaxx at Fremont. Reliance on third-party contract manufacturers introduces risks related to quality control, production delays, cost increases, and potential loss of intellectual property control. The intense competitive landscape means Amprius must continuously innovate and manage costs to maintain its performance advantage. Market adoption rates for new electric mobility applications, particularly EVs, could be slower or different than anticipated. Geopolitical factors, including trade tariffs and supply chain disruptions, could impact costs and customer demand, although Amprius is actively diversifying its manufacturing base to mitigate these risks. Finally, the company's ongoing losses and negative cash flow necessitate future funding, which may result in dilution for existing shareholders if obtained through equity issuances.

Conclusion

Amprius Technologies is a compelling growth story built on a foundation of differentiated silicon anode battery technology that delivers performance metrics exceeding conventional lithium-ion batteries. The strategic pivot to a capital-light contract manufacturing model has unlocked significant production capacity, enabling the company to capitalize on its technology leadership and drive impressive revenue growth, particularly in the high-performance aviation and light electric vehicle markets. Recent large purchase orders validate customer demand and provide near-term revenue visibility, positioning Amprius for continued growth in 2025.

While the path to profitability requires sustained execution in scaling operations, managing costs, and converting a robust customer pipeline into high-volume, recurring revenue, Amprius's unique technological advantages and flexible manufacturing strategy provide a strong foundation. Investors should monitor the company's progress in optimizing its manufacturing processes, securing additional high-volume customer contracts, and navigating the dynamic competitive and geopolitical landscape. The timing and funding of the Colorado facility will be a key indicator of the company's long-term manufacturing strategy, but near-term growth is expected to be fueled by the already established contract manufacturing capacity. The core investment thesis hinges on Amprius's ability to translate its performance leadership into sustainable market share gains and ultimately, profitability, leveraging its silicon anode innovation to power the future of electric mobility.