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SES AI Reports Third Quarter 2024 Earnings; Outlines Commercialization Progress

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SES AI (NYSE: SES) reported its Q3 2024 results, highlighting significant achievements in commercialization. The company's 100Ah Li-Metal cells passed the GB38031-2020 global EV safety test, marking progress toward C-samples and production. SES secured UAM cell supply agreements, including with SoftBank, and is developing revenue streams from AI-accelerated battery material discovery. The company demonstrated improved cash management, reducing FY 2024 cash usage guidance to $80M-$95M from $100M-$120M, with liquidity extending into 2028.

SES AI (NYSE: SES) ha riportato i risultati del terzo trimestre del 2024, evidenziando importanti traguardi nella commercializzazione. Le celle Li-Metal da 100Ah dell'azienda hanno superato il test di sicurezza globale per VE GB38031-2020, segnando un passo avanti verso i campioni C e la produzione. SES ha assicurato accordi di fornitura di celle UAM, compreso quello con SoftBank, e sta sviluppando flussi di reddito dalla scoperta di materiali per batterie accelerata dall'IA. L'azienda ha dimostrato un miglioramento nella gestione della liquidità, riducendo le previsioni di utilizzo di liquidità per l'anno fiscale 2024 da $100M-$120M a $80M-$95M, con liquidità estesa fino al 2028.

SES AI (NYSE: SES) reportó sus resultados del tercer trimestre de 2024, destacando logros significativos en comercialización. Las celdas Li-Metal de 100Ah de la compañía superaron la prueba de seguridad global para vehículos eléctricos GB38031-2020, marcando un avance hacia muestras C y producción. SES aseguró acuerdos de suministro de celdas UAM, incluyendo uno con SoftBank, y está desarrollando flujos de ingresos a partir del descubrimiento de materiales para baterías acelerado por IA. La compañía demostró una mejor gestión del efectivo, reduciendo la guía de uso de efectivo para el año fiscal 2024 de $100M-$120M a $80M-$95M, con liquidez que se extiende hasta 2028.

SES AI (NYSE: SES)는 2024년 3분기 결과를 보고하며 상업화에서 중요한 성과를 강조했습니다. 회사의 100Ah 리튬 메탈 셀은 GB38031-2020 글로벌 전기차 안전 테스트를 통과하며 C샘플 및 생산을 향한 진전을 나타냈습니다. SES는 SoftBank를 포함한 UAM 셀 공급 계약을 체결했으며, AI 가속화 배터리 소재 발견을 통해 수익원을 개발하고 있습니다. 회사는 현금 관리가 개선되었음을 보여주며, 2024 회계연도 현금 사용 지침을 $100M-$120M에서 $80M-$95M으로 줄였고, 유동성은 2028년까지 연장되었습니다.

SES AI (NYSE: SES) a publié ses résultats pour le troisième trimestre 2024, mettant en avant des réalisations significatives dans la commercialisation. Les cellules Li-Metal de 100Ah de l'entreprise ont passé le test de sécurité mondial pour les véhicules électriques GB38031-2020, marquant des progrès vers les échantillons C et la production. SES a sécurisé des accords de fourniture de cellules UAM, y compris avec SoftBank, et développe des flux de revenus grâce à la découverte de matériaux de batterie accélérée par l'IA. L'entreprise a démontré une meilleure gestion de la trésorerie, réduisant l'estimation de l'utilisation de trésorerie pour l'exercice 2024 de 100M$-120M$ à 80M$-95M$, avec une liquidité s'étendant jusqu'en 2028.

SES AI (NYSE: SES) hat seine Ergebnisse für das dritte Quartal 2024 veröffentlicht und dabei bedeutende Erfolge in der Kommerzialisierung hervorgehoben. Die 100Ah Li-Metal-Zellen des Unternehmens haben den globalen EV-Sicherheitstest GB38031-2020 bestanden, was einen Fortschritt in Richtung C-Muster und Produktion markiert. SES sicherte sich Lieferverträge für UAM-Zellen, einschließlich eines mit SoftBank, und entwickelt Einnahmequellen aus KI-unterstützter Entdeckung von Batteriematerialien. Das Unternehmen demonstrierte ein verbessertes Cash-Management und reduzierte die Liquiditätsprognose für das Geschäftsjahr 2024 von $100M-$120M auf $80M-$95M, mit einer Liquidität, die bis 2028 verlängert wird.

Positive
  • 100Ah Li-Metal cells passed critical GB38031-2020 EV safety test
  • Secured cell supply agreements in UAM sector, including SoftBank partnership
  • New revenue stream from AI-accelerated battery material discovery expected in Q4 2024
  • Reduced cash usage guidance by $20-25M for FY 2024
  • Strong balance sheet with liquidity extending into 2028
Negative
  • Continued cash burn with projected usage of $80-95M for FY 2024
  • No current revenue generation reported

Insights

The Q3 results reveal significant operational progress but with continued pre-revenue status. The reduced cash burn guidance of $80M-$95M from $100M-$120M demonstrates improved cost management, with liquidity extending into 2028. The company's strategic pivot to include AI-accelerated battery material discovery shows promise, with initial revenue expected in Q4 2024.

Key technical achievements include the 100Ah Li-Metal cells passing GB38031-2020 safety tests and completed UAM line acceptance, positioning SES AI for potential commercialization. The SoftBank partnership adds credibility and market access. However, investors should note that meaningful revenue generation remains future-oriented and the path to profitability requires successful execution across multiple verticals.

The successful GB38031-2020 safety test certification for 100Ah Li-Metal cells represents a important technical milestone, validating the technology's safety profile for EV applications. This achievement, combined with the UAM line completion and AI integration for material discovery, demonstrates a comprehensive technological approach spanning hardware and software domains.

The AI-driven material discovery platform could be a game-changer, potentially accelerating development cycles and creating additional revenue streams beyond battery manufacturing. This diversification into AI-powered solutions while maintaining core battery development shows strategic adaptation to market opportunities and technological trends.

EV B-Samples Passed Industry Safety Test GB38031

Revenue Pipeline from UAM and Drones

Revenue Pipeline from AI-Accelerated Battery Material Discovery

Strong Balance Sheet Provides Liquidity into 2028

Highlights

  • 100Ah Li-Metal cells successfully passed GB38031-2020 global EV safety test
  • UAM (Urban Air Mobility) lines completed Site Acceptance Test (SAT) and signed cell supply agreements including with SoftBank
  • Building earlier revenue pipeline from AI-accelerated battery material discovery for Li-Metal and Li-ion electrolytes
  • FY 2024 cash usage in range of $80M to $95M, down from $100M to $120M

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 its third quarter 2024 business results for the quarter ended September 30, 2024.

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 and details on its third quarter 2024 results.

“SES AI achieved several milestones in the third quarter, including building revenue pipeline from UAM and drones including with one of the world’s largest wireless communication providers, SoftBank. We also passed the GB38031-2020 global EV industry safety tests for its 100Ah Li-Metal cells, a major step towards C-samples and start-of-production for EV,” stated Dr. Qichao Hu, Founder and CEO. “Our ‘All-in on AI strategy’ continues to power our success with our first revenue using our AI-accelerated battery material discovery expected in the fourth quarter of 2024 this year.”

“We continue to be prudent with our cash and expense management. With the actions we implemented during the quarter, we are updating our full year 2024 guidance to account for lower total cash usage in the range of $80 million to $95 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/735446404.

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/735446404
Access Code: 310099

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 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; SES AI’s failure to satisfy certain NYSE listing requirements may result in its Class A common stock being delisted from the NYSE, which could eliminate or adversely affect the trading market for SES AI’s Class A common stock; 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.

For the media:

pr@ses.ai

For investors:

ir@ses.ai

Source: SES AI Corporation

FAQ

What major safety certification did SES AI (NYSE: SES) achieve in Q3 2024?

SES AI's 100Ah Li-Metal cells passed the GB38031-2020 global EV safety test, a important milestone toward C-samples and start-of-production for EVs.

What is SES AI's (NYSE: SES) projected cash usage for FY 2024?

SES AI reduced its FY 2024 cash usage guidance to $80-95 million, down from the previous range of $100-120 million.

When does SES AI (NYSE: SES) expect its first revenue from AI-accelerated battery material discovery?

SES AI expects to generate its first revenue from AI-accelerated battery material discovery in the fourth quarter of 2024.

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