SES AI Reports Fourth Quarter and Full Year 2024 Results

Rhea-AI Summary

SES AI (NYSE: SES) reported its Q4 and full year 2024 results, marking its first revenue-generating quarter with $2.0 million. The company projects FY 2025 revenue between $15M to $25M.

Key developments include:

• Expansion beyond EV-only Li-Metal batteries into multiple battery chemistries powered by AI
• Introduction of new AI-enhanced 2170 cylindrical cell for humanoid robotics and Li-ion EV applications
• Signing of MOU for up to 100 MWh advanced Battery Energy Storage System (BESS) solution
• FY 2024 cash usage in operations and Capex of $78.3M, below guidance of $80M-$95M

The company maintains strong liquidity into 2028 and has deepened partnerships with automotive OEMs through AI-powered electrolyte materials development for both Li-Metal and Li-ion batteries.

Positive

• First-ever revenue generation: $2.0M in Q4 2024
• Strong revenue guidance: $15M-$25M for FY 2025
• Lower than expected cash burn in FY 2024
• Liquidity secured into 2028
• Market expansion into BESS, humanoid robotics, and Li-ion EVs
• Signed MOU for 100 MWh BESS solution

Negative

• Significant cash usage of $78.3M in FY 2024
• Still in early commercialization phase
• Dependent on emerging markets adoption

Insights

Financial Analyst

SES AI's Q4 results mark a critical inflection point in the company's evolution, transitioning from pre-revenue R&D to commercial operations with their first $2.0 million in revenue. Their ambitious guidance of $15-25 million for FY 2025 represents a 7.5-12.5x increase, signaling confidence in their commercialization strategy but also setting high execution expectations for a company with a $302.9 million market cap.

The strategic pivot beyond EV-focused Li-Metal batteries to a diversified portfolio spanning multiple chemistries and applications is particularly significant. By leveraging AI across their entire value chain (Science, Safety, and Manufacturing), SES appears to be creating a differentiated position in the increasingly crowded battery technology space. Their entry into the BESS market - which they claim is 10x larger than automotive - could substantially expand their addressable market from approximately $100 billion to over $1 trillion by 2030.

The new AI-enhanced 2170 cylindrical cell targeting humanoid robotics applications represents a timely strategic move into an emerging high-growth segment. Companies like Tesla, Boston Dynamics, and Figure are driving significant investment into humanoid robots, creating demand for high-performance batteries with specific energy density and safety requirements that SES may be well-positioned to address.

Financially, SES demonstrated capital discipline with cash usage below guidance, and their reported runway into 2028 provides substantial breathing room to scale commercial operations. At current burn rates of approximately $80 million annually, and assuming revenue growth accelerates as projected, the path to cash flow breakeven becomes increasingly visible within their liquidity window.

The key investment consideration is whether SES can execute on this commercial ramp while maintaining their technological edge. The battery sector has seen numerous promising technologies struggle at the commercialization phase due to manufacturing scalability challenges, cost competitiveness issues, or simply being outpaced by incremental improvements to existing technologies from established players. SES's AI-centric approach may provide the differentiation needed to overcome these historical hurdles, but investor skepticism is warranted until consistent revenue growth materializes.

Technology Analyst

SES AI's transformation from an EV-focused Li-Metal battery developer to an AI-powered multi-chemistry battery company represents one of the most ambitious technological pivots in the energy storage sector. Their integration of AI across the entire battery development lifecycle - from materials discovery to safety systems and manufacturing processes - potentially addresses the fundamental challenge that has plagued battery startups: accelerating the traditionally decade-long development cycle for new battery technologies.

The company's "AI-enhanced molecule" discovery requires technical scrutiny. While the press release lacks specifics, this likely refers to using machine learning algorithms to identify novel electrolyte additives or interface stabilizers that address the persistent challenges in Li-Metal batteries - namely dendrite formation and cycle life. The real innovation may be in their apparent ability to rapidly translate these computational discoveries into functional prototypes, as evidenced by their new 2170 cylindrical cell.

The strategic expansion into humanoid robotics applications is particularly well-timed. This emerging market demands batteries with different performance profiles than EVs - prioritizing power density, fast charging, and form factor flexibility over maximum energy density. Traditional battery manufacturers are optimizing for EV requirements, potentially leaving an opening for SES to establish an early leadership position in this specialized segment.

Their BESS initiative signals technical versatility but raises integration questions. Grid-scale storage typically prioritizes cost, cycle life, and safety over energy density. SES will need to demonstrate that their technology offers compelling advantages over established lithium iron phosphate (LFP) and emerging sodium-ion solutions that are already scaling for grid applications.

The company's multi-application strategy carries significant technical execution risk. Developing and scaling one new battery chemistry is challenging enough; simultaneously commercializing different formulations for EVs, robotics, drones, and grid storage could stretch their technical resources. However, if their AI platform truly enables faster iteration and optimization across chemistries, this diversification could become a competitive advantage rather than a liability.

The key technical metric to watch will be customer validation. The reported OEM partnerships and BESS MOU suggest their technology is meeting performance thresholds in controlled testing. The progression from MOUs to binding contracts with specific performance guarantees will be the true indicator of technical maturity.

Reaches Commercialization and Revenue Generation in Fourth Quarter

New Revenue Sources Develop from EV, Drones/Robotics and BESS

New AI-Enhanced 2170 Cylindrical Cell Opens Humanoid and Li-ion EV Markets

Issues 2025 Revenue Guidance

Strong Balance Sheet Provides Liquidity into 2028

Highlights

• Reported $2.0 million in fourth quarter revenue; an accelerated revenue ramp is expected in 2025
• Deepened partnerships with existing automotive OEMs with commercialization of AI for Science to develop new electrolyte materials for both Li-Metal and Li-ion batteries
• All in on AI strategy powered battery material discovery to an entirely new AI-enhanced 2170 cylindrical cell for emerging humanoid robotics applications and entry into Li-ion battery applications in EV
• Commercialization of AI for Safety led to the signing of an MOU to provide up to 100 MWh advanced Battery Energy Storage System (“BESS”) solution
• FY 2024 cash usage in operations and Capex was $78.3M, below previous guidance of $80M to $95M
• FY 2025 revenue projected to be in a range of $15M to $25M

WOBURN, Mass.--(BUSINESS WIRE)--

SES AI Corporation (“SES AI”) (NYSE: SES), a global leader in the development and manufacturing of AI-enhanced high-performance Li-Metal and Li-ion batteries, today announced its fourth quarter and full year 2024 business results for the quarter ended December 31, 2024 and introduced its financial guidance for the year ending December 31, 2025.

The Company posted a Letter to Our Shareholders on its Investor Relations website from Founder and CEO Dr. Qichao Hu and Chief Financial Officer Jing Nealis, which provides a business update, details on its fourth quarter 2024 results, and its guidance for 2025.

“2024 was a transformational year for SES AI as we evolved from our legacy as an EV-only Li-Metal battery player to an emerging leader in multiple battery chemistries powered by commercialized AI for Science, Safety, and Manufacturing,” stated Dr. Qichao Hu, Founder and CEO. “For the first time in our history, we generated revenue and proved out the potential of our commercialization strategies.”

“We started 2025 with a number of milestones reached that accelerate our commercialization plans. Our discovery of an AI-enhanced molecule enabled us to unveil a new 2170 cylindrical cell that opened the emerging humanoid robotics applications market along with new and existing Li-Metal and Li-ion applications in EV and drones. Commercialization of AI for Safety has also opened a market for Battery Energy Storage Systems that we believe is 10 times larger than automotive. The contracts and MOU we signed in all of these markets provide the basis for our 2025 projection of revenue in the range of $15 million to $25 million,” Hu added.

The Company will hold a conference call later today at 5:00 p.m. Eastern Time.

A webcast of the live conference call will be available through SES’s Investor Relations website, https://investors.ses.ai. The following link can be used to register in advance for the call: https://events.q4inc.com/attendee/260841479.

The conference call can also be accessed live over the phone by dialing the following numbers:
United States (Toll Free): +1 833-470-1428
International: +1 404-975-4839
https://events.q4inc.com/attendee/260841479
Access Code: 465136

A webcast replay will be available shortly after the call at:
https://investors.ses.ai/events-and-presentations/events/default.aspx

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, robotics, battery energy storage systems 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; the risk that the market for SES AI’s AI-based services is still emerging, and its AI programs may not achieve the growth potential SES AI expects; 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; 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.

© 2025 SES AI Corp., Confidential and Proprietary

View source version on businesswire.com: https://www.businesswire.com/news/home/20250225094510/en/

For the media:

pr@ses.ai



For investors:

ir@ses.ai

Source: SES AI Corporation

FAQ

What revenue did SES AI (NYSE: SES) report for Q4 2024?

SES AI reported $2.0 million in revenue for Q4 2024, marking its first revenue-generating quarter.

What is SES's projected revenue guidance for 2025?

SES projects FY 2025 revenue to be in the range of $15 million to $25 million.

How much was SES's cash usage in FY 2024?

SES's FY 2024 cash usage in operations and Capex was $78.3M, performing better than the guided range of $80M to $95M.

What new markets is SES entering with its AI-enhanced 2170 cylindrical cell?

SES is entering the humanoid robotics applications market and expanding into Li-ion battery applications for EVs with its new AI-enhanced 2170 cylindrical cell.

What is the size of the BESS market opportunity according to SES?

According to SES, the Battery Energy Storage Systems (BESS) market is believed to be 10 times larger than the automotive market.