Amprius Signs Multiple Contract Manufacturing Partnerships to Secure Over 500 MWh of Production Capacity for SiCore™ Cells
Amprius Technologies, a leading innovator in next-gen lithium-ion batteries, has announced strategic partnerships with several contract manufacturers to secure over 500 MWh of production capacity for its SiCore™ battery cells. This move is aimed at meeting the rising customer demand since the SiCore platform was launched in January. The partnerships will enable Amprius to rapidly scale production without major incremental costs, offering flexibility to adjust volumes based on market demand. The manufacturing agreements cover various cell chemistries and form factors, including 18650 and 21700 cylindrical cells. These partnerships also aim to ensure stringent quality control and timely delivery while mitigating risks from potential production delays or supply chain disruptions.
- Secured over 500 MWh of production capacity for SiCore™ cells.
- Strategic partnerships eliminate upfront capital expenditures.
- Ability to scale production rapidly without significant costs.
- Contracts cover various chemistries and form factors, enhancing product versatility.
- Mitigation of risks from potential production delays or supply chain disruptions.
- Increased energy density by up to 50% and over 1,200 cycles for exceptional longevity.
- None.
Insights
Amprius Technologies' announcement of securing over 500 MWh of production capacity through multiple contract manufacturing partnerships is a strategic move with significant financial implications. Outsourcing production mitigates the need for hefty
In the long term, the ability to quickly adjust production volumes in response to market demand positions Amprius to better manage supply-demand fluctuations. This could result in more consistent revenue streams and reduced risk of inventory surplus or shortages. However, the reliance on multiple contract manufacturers could introduce complexities in quality control and coordination, which Amprius will need to manage effectively to maintain high performance standards.
Overall, Amprius' strategy aligns well with the industry's trend towards flexible and scalable manufacturing processes and the ability to meet customer demand swiftly without significant incremental costs could enhance their competitive position in the high-growth lithium-ion battery market.
From a technological standpoint, Amprius' move to secure additional production capacity for their SiCore™ cells is a pragmatic response to the evolving battery market. The SiCore cells, leveraging silicon anode technology, promise substantial improvements in
These partnerships are important for maintaining agility, as Amprius can rapidly scale production to meet varying market demands. Furthermore, using established Asia-based manufacturers can offer advantages in terms of cost efficiency and technological expertise. However, the challenge lies in maintaining consistent quality across different manufacturing sites and ensuring that all produced units meet the stringent performance and reliability standards expected of their products.
Amprius' emphasis on diverse chemistries and form factors, including 18650 and 21700 cylindrical cells, shows their commitment to catering to a broad range of applications, from consumer electronics to electric vehicles. This versatility not only appeals to a wider customer base but also positions Amprius favorably in an industry that values innovation and adaptability.
The announcement highlights Amprius' strategic positioning to capitalize on the growing demand for advanced battery technologies. By securing over 500 MWh of production capacity, Amprius demonstrates its readiness to meet the increasing requirements of its customers. This move is particularly significant considering the projected growth in the lithium-ion battery market, driven by the rising adoption of electric vehicles and renewable energy storage solutions.
Investors should note that Amprius' ability to quickly scale production without major incremental costs gives it a competitive edge in terms of pricing flexibility. This could attract more customers looking for cost-effective and high-performance battery solutions. Moreover, the partnerships with established manufacturers reduce the risk of production delays and supply chain disruptions, which are critical factors in maintaining customer satisfaction and loyalty.
However, while the strategic partnerships offer numerous advantages, they also require stringent oversight to ensure that quality and performance are not compromised. Any lapses in quality control could have adverse effects on Amprius' reputation and customer trust. Therefore, the company must maintain robust quality assurance processes to leverage the full benefits of these manufacturing partnerships.
Fulfills Significant Customer Demand by Providing Immediate Scale-Up Flexibility Without Major Incremental Costs
Amprius Signs Multiple Contract Manufacturing Partnerships to Secure Over 500 MWh of Production Capacity for SiCore™ Cells (Photo: Business Wire)
Since announcing the SiCore platform in January, customers’ demand for large quantities of cells has increased, necessitating the acceleration of SiCore production. The strategic agreements will supply SiCore pouches in various chemistries and form factors, including 18650 and 21700 cylindrical cells.
“Ensuring timely delivery of our cells while maintaining high quality is crucial to our growth,” said Dr. Kang Sun, CEO of Amprius Technologies. “Through these manufacturing partnerships, we expect to achieve the flexibility to scale rapidly, maintain competitive pricing, and meet the diverse needs of our customers. Partnering with established companies eliminates upfront capital expenditures and ensures immediate availability to accelerate our customers' qualification process and move them into production.”
The flexible capacity allows Amprius to quickly scale up or down production volumes in response to market demand without delays or significant costs. The contract manufacturing partnerships are structured to secure timely and efficient delivery, with stringent quality control measures so every SiCore battery meets our high standards of performance and reliability. Multiple manufacturing partners also helps mitigate risks from potential production delays, equipment failures, and supply chain disruptions.
The SiCore product family complements Amprius’ industry-leading SiMaxx™ product line. By leveraging Amprius’ innovative silicon anode cell technology, the SiCore cell family offers versatility [that is unparalleled in commercially available batteries], featuring a cell with up to a
For more information, please visit the Company’s 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 500 Wh/kg and 1,300 Wh/L. The company’s corporate headquarters is in
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 Amprius’ engagement with contract manufacturers, future demand for Amprius’ batteries, the manufacturing partners’ compliance with the terms of the applicable commercial agreement, Amprius’ ability to scale rapidly, maintain competitive pricing, and meet the diverse needs of our customers, and the other expected benefits from the new manufacturing arrangements. 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 market demands for SiCore batteries; the ability of Amprius to deliver high performance products to customers at acceptable prices and meet their demands via the toll manufacturing arrangements; Amprius’ ability to reduce costs as it scales production; delays in permitting, construction and operation of production facilities; third-party producers of Amprius batteries continuing to produce such batteries in the expected quantities and caliber and at the expected prices; Amprius’ customers continuing to purchase batteries directly from Amprius; 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 SiCore or SiMaxx batteries; 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/20240620752935/en/
Investors
Tom Colton, Chris Adusei-Poku
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
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