WOBURN, Mass. - SES AI Corporation (NYSE: SES), a developer of high-performance batteries with a market capitalization of approximately $300 million, announced new contracts with two global automotive OEM partners. According to InvestingPro data, the company currently trades at $0.83 per share and maintains strong liquidity with a current ratio of 15.24. These agreements, worth up to $10 million, are focused on utilizing AI for the development of new electrolyte materials for Li-Metal and Li-ion batteries used in automotive applications.
The revenue from these contracts is expected to be recognized partially in the fourth quarter of 2024 and the remainder through the first half of 2025. While the company has shown strong returns over the past three months, InvestingPro analysis indicates the company is currently burning through cash rapidly, with an EBITDA of -$90.53 million in the last twelve months. For comprehensive insights into SES's financial health and future prospects, investors can access the detailed Pro Research Report, available exclusively on InvestingPro. This follows the company's earlier announcement this month about the first battery featuring an electrolyte material discovered by their AI-driven Molecular Universe program, initially for drones and robotics.
Founder and CEO Qichao Hu expressed that these contracts underscore the value of applying AI in battery material discovery for automotive applications. He stated, "We believe this new revenue stream and these contracts validate and accelerate the commercial use of AI for Science for battery material discovery in automotive applications."
SES AI, established in 2012, specializes in Li-Metal battery technology and incorporates AI across various aspects of its operations, including R&D, materials sourcing, and battery health monitoring. The company has its headquarters in Boston and maintains operations in Singapore, Shanghai, and Seoul.
The recent agreements signify a step forward in the commercial application of AI in the battery industry. Based on InvestingPro's Fair Value analysis, SES currently appears slightly undervalued, though investors should note the stock's historically high price volatility. The company's forward-looking statements caution that these plans and expectations are subject to risks and uncertainties, and actual results may differ materially.
This news is based on a press release statement from SES AI Corporation. The company has advised investors to keep an eye on its website for important information, in addition to its press releases and public disclosures filed with the Securities and Exchange Commission.
In other recent news, SES AI Corporation, a leader in AI-driven battery technology, unveiled a groundbreaking AI-enhanced 2170 cylindrical cell at the CES 2025 event. This innovative battery, designed for humanoid robots, incorporates a new electrolyte material discovered through the company's Molecular Universe project, a collaboration with NVIDIA (NASDAQ:NVDA). The new battery is expected to meet the high-energy demands of robotics and drones applications.
In addition, SES AI announced significant advancements in its lithium metal battery technology and AI solutions during its third quarter 2024 earnings call. The company highlighted the successful completion of key safety tests for its 100 mPOWER lithium metal B-sample cells and the establishment of supply agreements, including one with SoftBank (TYO:9984). These developments are projected to generate substantial revenue from AI-accelerated battery material discovery.
SES AI reported a strong financial standing, ending the third quarter with $274 million in liquidity, which ensures a robust balance sheet through 2028. Operating expenses for the quarter were $34.2 million, with cash usage for 2024 forecasted between $80-$95 million.
Further, SES AI recently announced the immediate resignation of board member Brian Krzanich, following his appointment as CEO of Cerence Inc (NASDAQ:CRNC). The company has not yet announced a successor or detailed any changes to the board's structure following Krzanich's departure.
Lastly, the company is focusing on expanding its customer base across various sectors, including automotive and electronics, and is integrating AI into manufacturing and safety operations. The company's advancements in AI-accelerated material discovery are expected to significantly enhance battery cycle life.
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