Amprius Signs LOI with Fortune Global 500 Leader in Light Electric Vehicles

Rhea-AI Summary

Amprius Technologies (NYSE: AMPX) has signed a non-binding Letter of Intent (LOI) with a Fortune Global 500 technology OEM to develop high-energy SiCore™ cylindrical cells for Light Electric Vehicle (LEV) applications. The potential agreement could result in battery production orders exceeding 2 GWh over a 5-year period. Amprius aims to deliver cells with a 25% capacity improvement over current industry standards, significantly enhancing LEV range and performance.

Amprius has secured over 125 million SiCore cylindrical cell annual production capacity through contract manufacturing partnerships, with additional capacity expected in 2025. The company will begin shipping the first group of SiCore cylindrical cells for this application this year. This partnership demonstrates Amprius' ability to improve product range across various industries and marks its entry into the rapidly growing LEV market, projected to reach $205.7 billion by 2032.

Positive

• Potential multi-GWh agreement with Fortune Global 500 company
• 25% capacity improvement over current industry standards
• Secured 125 million SiCore cylindrical cell annual production capacity
• Expanding into the rapidly growing LEV market
• First shipment of SiCore cylindrical cells for this application expected this year

Negative

• None.

Insights

Tech Expert

This LOI marks a significant step for Amprius in the LEV market. Their SiCore™ technology, promising a 25% capacity improvement, could be a game-changer. The potential multi-GWh agreement over 5 years signals strong market confidence. However, it's important to note that this is a non-binding LOI, not a firm contract.

The cylindrical cell design is intriguing, as it's a departure from Amprius' traditional pouch cells. This flexibility could open new market segments. The secured 125 million annual production capacity through partnerships is impressive, but scaling to meet potential 2 GWh+ orders may be challenging. Investors should watch for the transition from LOI to a binding agreement and Amprius' ability to deliver on performance promises.

Market Research Analyst

The LEV market's projected growth to $205.7 billion by 2032 with a 9.74% CAGR presents a substantial opportunity for Amprius. Partnering with a Fortune Global 500 company could provide a significant competitive edge and market validation for Amprius' technology.

However, the LEV market is highly competitive with established players. Amprius' success will depend on its ability to deliver on the promised 25% capacity improvement and scale production efficiently. The potential 2 GWh+ order over 5 years, while impressive, is still a small fraction of the total market. Investors should consider Amprius' ability to capture additional market share and diversify its customer base beyond this single partnership.

SiCore™ Cells to Boost LEV Range by 25% with Potential Multi-GWh Agreement

FREMONT, Calif.--(BUSINESS WIRE)-- Amprius Technologies, Inc. (“Amprius”) (NYSE: AMPX), a leader in next-generation lithium-ion batteries with its Silicon Anode Platform, today announced it has signed a non-binding Letter of Intent (“LOI”) with a Fortune Global 500 technology OEM to develop a high-energy SiCore™ cylindrical cell for Light Electric Vehicle (“LEV”) applications. The LOI demonstrates both parties’ intention to enter into a commercial supply agreement that will cover the next 5 years.

Amprius Signs LOI with Fortune Global 500 Leader in Light Electric Vehicles (Graphic: Business Wire)

The Fortune Global 500 technology company has a strong presence in the LEV industry and is looking to enhance its product offerings through this strategic partnership with Amprius. The potential future business associated with the non-binding LOI could provide Amprius with battery production orders exceeding 2 GWh over the proposed contract’s duration.

Under this LOI, Amprius will design and deliver high energy density cylindrical cells based on Amprius’ SiCore anode chemistry with a 25% capacity improvement over the current industry standard. While the performance specifications are still being finalized, this development aims to substantially increase energy capacity, marking a significant milestone for both companies. Amprius has secured over 125 million SiCore cylindrical cell annual production capacity through contract manufacturing partnerships. Additional capacity will be available in 2025.

“This partnership further demonstrates Amprius’ industry-leading battery performance and its ability to significantly improve product range and performance across a variety of industries,” said Dr. Kang Sun, CEO of Amprius Technologies. “As we continue to transform the electric mobility sector, we are beginning to make strong inroads in the light electric vehicle space. We are excited to add another Fortune Global 500 company to our robust list of customers who trust Amprius to power their devices and products. The batteries for this application will take advantage of Amprius' new breakthrough SiCore cell chemistry and cylindrical cell design.”

Amprius will begin shipping the first group of SiCore cylindrical cells designed for this application to the customer this year.

The LEV market is expected to grow rapidly, reaching an estimated $205.7 billion by 2032, with a compound annual growth rate (CAGR) of 9.74% from 2023 onward, according to a Providence Research Report. This growth will continue to drive increasing demand for high-performance batteries across the micro-mobility sector.

For more information, please visit the Amprius investor relations website at ir.amprius.com.

About Amprius Technologies, Inc.

Amprius Technologies, Inc. is a leading manufacturer of high-energy and high-power lithium-ion batteries, producing the industry’s highest-known energy density cells. The company’s commercially available SiMaxx™ batteries deliver up to 450 Wh/kg and 1,150 Wh/L, with third-party validation of 500Wh/kg and 1,300 Wh/L. Amprius expanded its product portfolio to include the SiCore™ platform in 2024, significantly enhancing its ability to serve additional customer applications. The company’s corporate headquarters is in Fremont, California, where it maintains an R&D lab and a MWh scale manufacturing facility for the fabrication of silicon anodes and cells. To serve customer demand, Amprius entered into several agreements to secure over 500MWh of contract manufacturing available today and entered into a lease agreement for a gigawatt-hour-scale facility in Brighton, Colorado. For additional information, please visit amprius.com. Also, see the company’s LinkedIn and Twitter pages.

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, each as amended. Forward-looking statements may be identified by the use of words such as “estimate,” “plan,” “project,” “forecast,” “intend,” “expect,” “anticipate,” “believe,” “seek” or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding the potential business the LOI will provide to Amprius, the products Amprius will design and deliver under the LOI, the increase in energy capacity of the development under the LOI, Amprius’ manufacturing capacity, Amprius’ ability to improve product range and performance across different industries, the addressable market of Amprius’ products, when Amprius will begin shipping products under the LOI and the size of the LEV market. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of Amprius’ management and are not predictions of actual performance. Actual results could differ materially from these forward-looking statements as a result of certain risks and uncertainties. These forward-looking statements are subject to a number of risks and uncertainties, including Amprius’ liquidity position; risks related to the rollout of Amprius’ business and the timing of expected business milestones; Amprius’ ability to commercially produce high performing batteries; the effects of competition on Amprius’ business; supply shortages in the materials necessary for the production of Amprius’ products; and changes in domestic and foreign business, market, financial, political and legal conditions. For more information on these risks and uncertainties that may impact the operations and projections discussed herein can be found in the documents we filed from time to time with the Securities and Exchange Commission (the “SEC”), all of which are available on the SEC’s website at www.sec.gov. There may be additional risks that Amprius does not presently know or that Amprius currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect Amprius’ expectations, plans or forecasts of future events and views as of the date of this press release. These forward-looking statements should not be relied upon as representing Amprius’ assessments as of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements. Except as required by law, Amprius specifically disclaims any obligation to update any forward-looking statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240904403399/en/

Investors

Tom Colton, Greg Bradbury

Gateway Group, Inc.

949-574-3860

IR@amprius.com

Media

Zach Kadletz, Brenlyn Motlagh

Gateway Group, Inc.

949-574-3860

Amprius@Gateway-grp.com

Source: Amprius Technologies, Inc.

FAQ

What is the potential production volume for Amprius Technologies (AMPX) under the new LOI?

The potential future business associated with the non-binding LOI could provide Amprius Technologies (AMPX) with battery production orders exceeding 2 GWh over the proposed 5-year contract duration.

How much improvement in capacity does Amprius (AMPX) aim to achieve with its SiCore cells for LEVs?

Amprius Technologies (AMPX) aims to deliver SiCore cylindrical cells with a 25% capacity improvement over the current industry standard for Light Electric Vehicle applications.

What is Amprius Technologies' (AMPX) current production capacity for SiCore cylindrical cells?

Amprius Technologies (AMPX) has secured over 125 million SiCore cylindrical cell annual production capacity through contract manufacturing partnerships, with additional capacity expected to be available in 2025.

When will Amprius Technologies (AMPX) begin shipping SiCore cylindrical cells for the LEV application?

Amprius Technologies (AMPX) will begin shipping the first group of SiCore cylindrical cells designed for the Light Electric Vehicle application to the customer this year (2024).