WOBURN, Mass. - SES AI Corporation (NYSE: SES), specializing in Li-Metal battery technology, has progressed in its partnership with Hyundai Motor Company (OTC:HYMLF) and Kia Corporation, moving into a new phase of joint development. The companies will establish a B-sample cell development, assembly, and testing facility in Ui-Wang, South Korea, later this year, where SES AI will operate a significant Li-Metal production line.
This collaboration marks a pioneering moment for SES AI, as it becomes the first Li-Metal battery company to initiate two B-sample development Joint Development Agreements (JDAs). The first JDA was announced in December 2023 with another major automaker, underscoring SES AI's growing influence in the electric vehicle (EV) battery market.
Qichao Hu, CEO of SES AI, expressed enthusiasm over deepening the partnership with Hyundai Motor (OTC:HYMTF) and Kia, citing the companies' shared commitment to expanding the EV market. Hyundai Motor and Kia are currently the second-largest EV sellers in the U.S. Hu emphasized SES AI's dedication to developing advanced EV batteries with AI integration, aiming for optimal energy density and safety.
Chang Hwan Kim, Senior Vice President at Hyundai Motor and Kia, highlighted the strategic importance of SES AI's Li-Metal technology in their efforts to create top-tier products and transition towards carbon-neutral mobility solutions.
Based in Woburn, Massachusetts, with additional operations in Shanghai and Seoul, SES AI has received backing from notable industry players, including Hyundai Motor, Kia, General Motors Co (NYSE:GM)., and Honda Motor Co (NYSE:HMC). The company's focus extends beyond land transportation, with its batteries also being tailored for Urban Air Mobility (UAM) applications.
The forward-looking statements in the press release from SES AI contain projections and expectations for the company's technological advancements and future business strategies. While the company has expressed confidence in its plans, it acknowledges the inherent risks and uncertainties in technology development and market integration.
This article is based on a press release statement from SES AI Corporation.
InvestingPro Insights
As SES AI Corporation (NYSE: SES) forges ahead with its partnership with Hyundai Motor and Kia, the financial metrics and market indicators from InvestingPro provide a deeper insight into the company's current standing.
With a market capitalization of $450.8 million, SES AI is navigating the competitive landscape of the EV battery market. A notable InvestingPro Tip highlights that SES AI holds more cash than debt on its balance sheet, which could provide a buffer for the company as it continues to invest in research and development for its Li-Metal battery technology.
Still, it is not all smooth sailing for SES AI. The company is experiencing a rapid cash burn and analysts do not expect it to be profitable this year. Moreover, the stock price has suffered significantly, with a 1-month total return of -17.83% and a 6-month total return of -34.85%, reflecting the challenges it faces in a volatile market. These metrics underscore the high-risk nature of investing in a company at the forefront of developing cutting-edge technology.
Investors considering SES AI should note the company's price-to-earnings (P/E) ratio of -10.44, indicating that it is not generating profit relative to its share price. Moreover, the return on assets stands at -12.61%, reflecting challenges in asset utilization and profitability.
For those interested in a more comprehensive analysis, InvestingPro offers additional InvestingPro Tips for SES AI. To explore these insights further and benefit from the full range of expert financial analysis, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
With the next earnings date slated for May 2, 2024, investors and industry watchers will be keenly observing SES AI's performance metrics and strategic developments as they unfold.
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