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Amprius to develop lighter batteries for Fortune 500 client

Published 10/02/2024, 08:44 AM
AMPX
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FREMONT, Calif. - Amprius Technologies, Inc. (NYSE: AMPX), known for its Silicon Anode Platform, has entered into a development contract with a Fortune 500 company to create a high-energy SiMaxx™ pouch cell. The company announced today that this collaboration aims to halve the weight and size of the current battery used by the client without sacrificing performance.

The new battery technology is anticipated to enhance product design and user experience, potentially giving the client a significant edge in the market. Amprius's silicon anode cells are recognized for their high energy and power density, characteristics that are critical for efficient and safe device operation. The project's success could lead to a demand for over one million cells annually.

Dr. Kang Sun, CEO of Amprius Technologies, highlighted the company's commitment to innovation, stating, "Our high-energy and high power-density silicon anode cells allow companies to innovate confidently, knowing their devices will be powered efficiently and safely."

Amprius, a leader in lithium-ion battery technology, has reported increasing interest from Fortune 500 companies for its high-performance batteries. In September, the company announced a letter of intent with another Fortune Global 500 leader in Light Electric Vehicles (LEVs).

Amprius's SiMaxx™ batteries are known for their high energy density, delivering up to 450 Wh/kg and 1,150 Wh/L, with third-party validation reaching 500 Wh/kg and 1,300 Wh/L. The company, headquartered in Fremont, California, also operates an R&D lab and a manufacturing facility in the same location, where it fabricates silicon anodes and cells.

The company has expanded its product line with the SiCore™ platform in 2024, enhancing its offerings for various customer applications. To meet growing demand, Amprius has secured over 500 MWh of contract manufacturing capacity.

This press release contains forward-looking statements about Amprius's ability to deliver on the project's objectives and the potential market demand for the developed batteries. These statements are based on current expectations and are subject to risks and uncertainties that could cause actual results to differ materially.

Investors are reminded that the information provided is based on a press release statement and should be considered in the context of known industry risks and uncertainties.

In other recent news, Amprius Technologies has seen significant developments. The company reported a 105% year-over-year increase in its second-quarter revenue, reaching $3.3 million. However, it also disclosed a net loss of $12.5 million, primarily due to preconstruction costs for a new Colorado facility and increased operating expenses. Truist Securities and Oppenheimer have shown confidence in Amprius, with Truist increasing its price target and both firms maintaining positive ratings.

Amprius has secured sales agreements exceeding $20 million for light-duty vehicle applications, anticipated to be fulfilled by mid-2025. These agreements are in addition to a 2GWh Letter of Intent with a Fortune 500 company. The company has also established contract manufacturing capabilities, aiming to scale up to 500MWh per year for its SiCore product line.

Board changes have been announced, with the resignation of Justin Mirro and Mary Gustanski, and the appointment of Livingston "Tony" Satterthwaite. Lastly, Amprius has received a notice from the New York Stock Exchange regarding non-compliance with listing standards, but the company has expressed intent to rectify the deficiency within the given six-month period. These are the recent developments for Amprius Technologies.

InvestingPro Insights

Amprius Technologies' recent development contract with a Fortune 500 company aligns with its ambitious growth trajectory, as evidenced by InvestingPro data. The company's revenue growth of 216.99% over the last twelve months as of Q2 2024 reflects its expanding market presence and increasing demand for its innovative battery technology.

However, investors should note that Amprius is currently operating at a loss, with a gross profit margin of -153.77% for the same period. This aligns with an InvestingPro Tip indicating that the company "suffers from weak gross profit margins." This financial situation is not uncommon for high-growth technology companies investing heavily in research and development.

Another relevant InvestingPro Tip states that Amprius "holds more cash than debt on its balance sheet," which could provide the company with financial flexibility to fund its ambitious projects and potential scaling of operations if the new battery development proves successful.

It's worth noting that Amprius' stock has experienced significant volatility, with the price falling 78.25% over the past year. This volatility, coupled with the company's innovative potential, presents a complex picture for investors considering the stock.

For those interested in a deeper analysis, InvestingPro offers 18 additional tips for Amprius Technologies, providing a more comprehensive view of the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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