SES AI Announces First Li-Metal Cell Production Facility Dedicated to Urban Air Mobility (UAM)

Rhea-AI Summary

SES AI (NYSE: SES) has announced the completion of its first Li-Metal cell production facility dedicated to Urban Air Mobility (UAM) in Chungju, South Korea. This marks a significant step in the company's commercialization of Li-Metal battery technology. The facility, which has completed its Field Acceptance Test (FAT), is the world's first high-energy density Li-Metal line specifically for UAM applications.

Key highlights include:

• Installation of AI for Manufacturing and AI for Safety
• Conversion of previous EV A-sample line to UAM line
• Recent GB38031-2020 certification for abuse safety
• Advancement to B-sample development with Hyundai Motor Company and Kia
• Implementation of All-in-one AI strategy for Science, Manufacturing, and Safety

This development positions SES AI as a leader in high-performance Li-Metal batteries for the emerging UAM market, complementing its existing efforts in the EV sector.

Positive

• Completed first Li-Metal cell production facility for UAM in South Korea
• Received GB38031-2020 certification for abuse safety
• Advanced to B-sample development with Hyundai Motor and Kia
• Implemented All-in-one AI strategy for Science, Manufacturing, and Safety
• Expanded into UAM market, complementing existing EV efforts

Negative

• None.

Tech Expert

The completion of SES AI's Li-Metal cell production facility for Urban Air Mobility (UAM) in South Korea is a significant milestone in the battery industry. This facility, being the world's first high-energy density Li-Metal line dedicated to UAM, positions SES AI at the forefront of this emerging market. The integration of AI for Manufacturing and AI for Safety demonstrates a forward-thinking approach to production and quality control.

The GB38031-2020 certification for abuse safety, coupled with AI for in-use safety, addresses critical concerns in battery technology for aerial applications. This development could potentially accelerate the adoption of electric vertical takeoff and landing (eVTOL) vehicles, a key component of future urban transportation systems.

SES AI's progress in both UAM and EV sectors, with two automotive B-sample agreements, showcases the versatility of their Li-Metal technology. This dual-market approach could provide a competitive edge and diversify revenue streams, potentially reducing risks associated with focusing solely on the EV market.

Financial Analyst

SES AI's strategic move into the UAM market represents a potential new revenue stream that complements its existing EV focus. The completion of the dedicated Li-Metal production facility for UAM applications could position the company to capture early market share in this emerging sector.

The advancement to B-sample agreements with Hyundai Motor Company and Kia indicates progress towards commercialization. However, investors should note that the path from development to mass production and profitability in the battery industry can be long and capital-intensive.

The company's All-in-one AI strategy could potentially lead to improved operational efficiency and product quality, which may translate to cost savings and competitive advantages in the long term. However, the financial impact of these initiatives remains to be seen in future earnings reports.

While the news is positive for SES AI's technological progress, investors should closely monitor the company's cash burn rate and path to profitability, as R&D and facility investments in the battery sector often require substantial capital.

• UAM Cell Facility Opens in Chungju, South Korea.
• Field Acceptance Test (FAT) in South Korea Completed.

WOBURN, Mass.--(BUSINESS WIRE)-- SES AI Corporation (“SES AI”) (NYSE: SES), a global leader in the development and manufacturing of high-performance Li-Metal batteries, today announced that it completed the conversion and Field Acceptance Test (FAT) of its Li-Metal cell production facility dedicated to Urban Air Mobility UAM in Chungju, South Korea – marking another step forward in the company’s commercialization of its Li-Metal battery technology.

(Graphic: Business Wire)

The completion of this line conversion and FAT is the world’s first high-energy density Li-Metal line dedicated to UAM applications. The facility will also have AI for Manufacturing and AI for Safety installed. SES AI has been working with its UAM partners on new cell design and converting its previous EV A-sample line to a UAM line since it first announced UAM as an exciting, new strategic market that complements its EV efforts in 2023.

“We have always been excited about the application of UAM for Li-Metal as a positive step towards commercialization. Our customers have been waiting for a production line dedicated to high-energy density Li-Metal,” said Qichao Hu, Founder and CEO of SES AI. “This UAM line comes at a perfect time, and together with the GB38031-2020 certification that we received for abuse safety, along with the AI for Safety that we are installing for in-use safety, our UAM customers can look forward to a new battery that’s both high energy density and safe.”

In December, SES AI announced UAM as a new exciting market in addition to EV. In April, SES AI advanced to the next phase of its joint development with Hyundai Motor Company and Kia Corporation by signing an agreement to develop B samples, making it the only Li-Metal battery company with two automotive B-sample agreements in progress and the world’s first Li-Metal line dedicated to UAM. Building on this momentum, during the recent Q2 shareholder meeting, the Company unveiled its All-in-one AI strategy, leveraging AI for Science, Manufacturing, and Safety to accelerate the commercialization of Li-Metal batteries.

About SES AI:

SES AI Corp. (NYSE: SES) is powering the future of global electric transportation on land and in the air with the world’s most advanced Li-Metal batteries. SES AI is the first battery company in the world to accelerate its pace of innovation by utilizing superintelligent AI across the spectrum of its business, from research and development; materials sourcing; cell design; engineering and manufacturing; to battery health and safety monitoring. Founded in 2012, SES AI is an Li-Metal battery developer and manufacturer headquartered in Boston and with operations in Singapore, Shanghai, and Seoul. Learn more at SES.AI.

SES AI may use its website as a distribution channel of material company information. Financial and other important information regarding SES AI is routinely posted on and accessible through the Company’s website at www.ses.ai. Accordingly, investors should monitor this channel, in addition to following SES AI’s press releases, Securities and Exchange Commission filings and public conference calls and webcasts.

Forward-Looking Statements

This press release contains statements that SES AI believes are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, statements relating to expectations for future financial performance, business strategies or expectations for our business. These statements are based on the beliefs and assumptions of the management of SES AI. Although SES AI believes that its plans, intentions and expectations reflected in or suggested by these forward-looking statements are reasonable, it cannot provide assurance that it will achieve or realize these plans, intentions or expectations. These statements constitute projections, forecasts and forward-looking statements, and are not guarantees of performance. Such statements can be identified by the fact that they do not relate strictly to historical or current facts. When used in this press release, words such as “anticipate”, “believe”, “can”, “continue”, “could”, “estimate”, “expect”, “forecast”, “intend”, “may”, “might”, “plan”, “possible”, “potential”, “predict”, “project”, “seek”, “should”, “strive”, “target”, “will”, “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.

You should not place undue reliance on these forward-looking statements. Should one or more of a number of known and unknown risks and uncertainties materialize, or should any of SES AI’s assumptions prove incorrect, our actual results or performance may be materially different from those expressed or implied by these forward-looking statements. Some factors that could cause actual results to differ include, but are not limited to the following risks: risks related to the development and commercialization of SES AI’s battery technology and the timing and achievement of expected business milestones; risks relating to the uncertainty of achieving and maintaining profitability; risks relating to the uncertainty of meeting future capital requirements; the ability of SES to integrate its products into electric vehicles (“EVs”) and Urban Air Mobility (“UAM"), drones and other applications; the risk that delays in the pre-manufacturing development of SES AI’s battery cells could adversely affect SES AI’s business and prospects; the market for air mobility, and for use of Li-Metal technology in air mobility applications, is still emerging and may not achieve the growth potential we expect; risks relating to the development of the UAM market and demand for batteries from the UAM industry; potential supply chain difficulties; the ability of SES AI to engage target original equipment manufacturers (“OEMs”) customers successfully and integrate SES AI’s products into EVs manufactured by OEM customers; the ability to obtain raw materials, components or equipment through new or existing supply relationships; our use of artificial intelligence and machine learning may result in legal and regulatory risk; risks resulting from SES AI’s joint development agreements and other strategic alliances and investments; product liability and other potential litigation, regulation and legal compliance; SES AI’s ability to attract, train and retain highly skilled employees and key personnel; developments in alternative technology or other fossil fuel alternatives; risks related to SES AI’s intellectual property; business, regulatory, political, operational, financial and economic risks related to SES AI’s business operations outside the United States; SES AI has identified material weaknesses in its internal control over financial reporting and may identify material weaknesses in the future or otherwise fail to develop or maintain an effective system of internal controls; the volatility of SES AI’s common stock and value of SES AI’s public warrants; and the other risks described in “Part I, Item 1A. Risk Factors” in our annual report on Form 10-K for the fiscal year ended December 31, 2023 filed with the Securities and Exchange Commission (“SEC”) on February 27, 2024 and other documents filed from time to time with the SEC. There may be additional risks that SES AI presently knows and/or 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 SES AI’s expectations, plans or forecasts of future events and views only as of the date of this press release. SES AI anticipates that subsequent events and developments will cause its assessments to change. However, while SES AI may elect to update these forward-looking statements at some point in the future, SES AI specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing SES AI’s assessments as of any date subsequent to the date of this press release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240812943673/en/

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Source: SES AI Corporation

FAQ

What milestone did SES AI (NYSE: SES) announce for its UAM battery production?

SES AI announced the completion and Field Acceptance Test (FAT) of its first Li-Metal cell production facility dedicated to Urban Air Mobility (UAM) in Chungju, South Korea.

What unique features does SES AI's new UAM battery production facility have?

The facility is the world's first high-energy density Li-Metal line dedicated to UAM applications and will have AI for Manufacturing and AI for Safety installed.

What certification did SES AI (NYSE: SES) recently receive for its batteries?

SES AI received the GB38031-2020 certification for abuse safety for its batteries.

Which automotive companies is SES AI (NYSE: SES) developing B-samples with?

SES AI is developing B-samples with Hyundai Motor Company and Kia , making it the only Li-Metal battery company with two automotive B-sample agreements in progress.

What new strategy did SES AI (NYSE: SES) unveil during its Q2 shareholder meeting?

SES AI unveiled its All-in-one AI strategy, leveraging AI for Science, Manufacturing, and Safety to accelerate the commercialization of Li-Metal batteries.