Company Overview

SES AI Corporation (SES) is a global leader in the development and manufacturing of AI-enhanced high-performance lithium-metal (Li-Metal) and lithium-ion (Li-ion) batteries. The company's mission is to accelerate the world's energy transition through material discovery and battery management, leveraging cutting-edge artificial intelligence (AI) technologies.

Founded in 2012, SES has dedicated over a decade to building a comprehensive and proprietary Li-Metal and Li-ion battery technology platform. The company's differentiated battery technology has been designed to combine the high energy density of Li-Metal with the cost-effective, large-scale manufacturability of conventional Li-ion batteries. This synergy aims to promote the transition from the global dependence on fossil fuel-based vehicles to clean and efficient electric vehicles (EVs).

Company History

SES AI Corporation, formerly known as Ivanhoe Capital Acquisition Corp., was founded in 2020 as a Cayman Islands-based special purpose acquisition company (SPAC) with the goal of merging with an existing business. In 2021, the company announced its plans to merge with SES Holdings Pte. Ltd., a Singapore-based private company developing high-performance lithium-metal (Li-Metal) and lithium-ion (Li-ion) rechargeable battery technologies. The business combination was completed in February 2022, marking a significant milestone for SES AI as it transitioned from a SPAC to a publicly-traded company focused on the development and manufacturing of advanced battery solutions.

Prior to the merger, SES Holdings had dedicated over a decade to building a comprehensive and proprietary battery technology platform, including innovations in high-concentration solvent-in-salt electrolytes, ultra-thin wide format lithium anodes, protective anode coatings, and novel cell engineering processes. In the years leading up to the business combination, SES AI faced several key challenges, including overcoming scientific and engineering hurdles to commercialize its Li-Metal battery technology, which had yet to be successfully used in automobiles. Additionally, as an early-stage growth company, SES AI incurred significant operating expenses without generating sufficient revenue, resulting in sustained net losses.

The successful completion of the business combination in 2022 provided SES AI with the necessary capital and resources to accelerate its commercialization efforts. The company transitioned from the development and production of A-Sample batteries to the more advanced B-Sample batteries, which met the specific requirements of its OEM partners for electric vehicle (EV) applications.

Technological Development

SES's journey began in 2012 when it transitioned from solid-state Li-Metal to develop Li-Metal batteries that could operate at room temperature and be manufactured at scale. In 2024, the company began producing large 50Ah and 100Ah Li-Metal battery cells for EVs, meeting or exceeding industry targets for energy density, low-temperature discharge, fast charge and discharge, cycle life, and safety.

The company's success in developing Li-Metal technology has led to strategic partnerships with leading global automotive original equipment manufacturers (OEMs), including Hyundai, Honda, and General Motors (GM). SES has signed joint development agreements (JDAs) and service contracts with these OEMs to jointly research, develop, and produce its Li-Metal battery cells and technology.

AI Strategy and Commercialization

As SES transitions from an R&D-focused company to a commercial, revenue-generating business, it has made significant progress in its "All-in on AI" strategy. The company's AI initiatives, which include AI for Science, AI for Manufacturing, and AI for Safety, have been instrumental in accelerating battery material discovery, improving manufacturing processes, and enhancing battery safety.

In 2024, SES achieved a major milestone by reporting its first revenue of $2 million in the fourth quarter, with a 63% gross margin. This marked the beginning of the company's evolution into a commercialized and revenue-generating business. The revenue was primarily driven by contracts with automotive OEM partners to develop AI-enhanced Li-Metal and Li-ion batteries, as well as initial deliveries of Li-Metal cells to customers in the urban air mobility (UAM) and drone markets.

Future Outlook

Looking ahead, SES AI has provided guidance for 2025, anticipating revenue between $15 million and $25 million. This growth is expected to come from the continued development of AI-enhanced Li-Metal and Li-ion batteries for EV applications, delivery of battery cells to UAM, drone, and robotics customers, and the delivery of integrated Battery Energy Storage Systems (BESS) with the company's AI solutions.

Financials and Liquidity

For the year ended December 31, 2024, SES reported revenue of $2.04 million, primarily from service contracts with automotive OEMs and other manufacturers. The cost of revenue was $752,000, resulting in a gross profit of $1.29 million. The company incurred $72.14 million in research and development expenses and $38.40 million in general and administrative expenses, leading to a net loss of $100.19 million.

In the fourth quarter of 2024, SES reported revenue of $2.04 million and a net loss of $34.55 million. This marked the first quarter the company reported revenue, signifying a significant milestone in its commercialization efforts.

The company's strong liquidity position, with $262.5 million in cash and cash equivalents as of the end of 2024, provides it with the financial flexibility to fund ongoing and future projects. Specifically, SES had $128.80 million in cash and cash equivalents and $133.75 million in short-term investments. SES AI's focus on a capital-light business model, which includes contract manufacturing and the sale of AI models and core battery materials, is expected to maintain adequate liquidity well into 2028.

For 2025, SES has provided guidance for total cash usage (operations and capital expenditures) to be between $70 million and $80 million. This is a reduction from the 2024 actual total cash usage of $78.3 million, which was below the previously guided range of $80 million to $95 million.

Key Developments

One of the key developments for SES AI in 2024 was the unveiling of an AI-enhanced 2170 cylindrical cell for emerging humanoid robotics applications. This battery, the first in the world to contain materials discovered by the company's Molecular Universe effort, showcases the power of SES's AI-driven material discovery capabilities and its ability to expand into new markets beyond EVs.

The company's geographic footprint includes research and development facilities in the United States, China, and South Korea, allowing it to leverage global talent and resources to drive innovation. SES AI has also navigated various regulatory and geopolitical challenges, such as export controls and trade tensions, to maintain its competitive position.

Business Segments

SES AI Corporation's business is organized into the following key product segments:

1. Electric Vehicles (EV) Segment: This is SES's primary focus, developing high-performance, AI-enhanced Li-Metal and Li-ion rechargeable battery technologies for EVs. The company has transitioned from A-Sample prototype batteries to B-Sample batteries that meet specific OEM requirements for EVs. SES expects to begin developing C-Sample batteries, which are fully functional, mature samples for mass production and tested for drivability in vehicles, starting in 2026.

2. Urban Air Mobility (UAM) Segment: SES believes its Li-Metal battery technology is well-suited for UAM applications. The company has converted two of its EV A-Sample production lines to focus on UAM cell production. The high energy density and high power density Li-Metal cells, such as the AI-enhanced 2170 cylindrical cell unveiled in 2025, are designed for use in UAM aircraft, drones, and humanoid robots.

3. Artificial Intelligence (AI) Initiatives: SES has made significant investments in developing AI capabilities across its business, including AI for Science to accelerate materials discovery, AI for Manufacturing to optimize production processes, and AI for Safety to enhance battery state-of-health monitoring and incident prediction.

Risks and Challenges

While SES AI has made significant strides, it continues to face risks and challenges common to early-stage technology companies. These include the ability to successfully commercialize its Li-Metal technology, the evolving battery market, competition from both established players and new entrants, and the need to continually innovate and stay ahead of the curve.

Conclusion

Overall, SES AI's journey from an R&D-focused company to a revenue-generating business, coupled with its "All-in on AI" strategy and strategic partnerships, positions it as a promising player in the rapidly evolving battery technology landscape. As the company continues to push the boundaries of lithium-metal battery development, its ability to deliver on its ambitious growth plans will be closely watched by investors and industry observers alike. The company's focus on a capital-light business model and its strong liquidity position provide a solid foundation for future growth and innovation in the dynamic field of advanced battery technologies.