SES AI Signs an MOU With AISPEX Targeting up to $45 Million to Provide up to 100 MWh Advanced Battery Energy Storage System (“BESS”) Solution With AI for Safety and First Deployment at a Crypto Mining Site in Texas

Rhea-AI Summary

SES AI (NYSE: SES) has signed a non-binding Memorandum of Understanding (MOU) with AISPEX, a Texas-based Retail Energy Provider, to provide Battery Energy Storage System (BESS) solutions. The partnership includes SES's proprietary AI for Safety Battery Management System for monitoring battery health and safety.

The MOU outlines a potential purchase order pipeline of up to $45 million and up to 100 MWh. The first deployment, scheduled for 2025, involves a project of up to 30 MWh valued at up to $13 million, to be implemented in two phases at a crypto mining site in Texas.

According to SES AI CEO Qichao Hu, the energy storage market, particularly in crypto mining and data centers, represents a total addressable market more than 10 times larger than the EV sector. The company aims to leverage its capabilities in materials discovery and superintelligent battery management through AI to extend BESS life and improve safety.

Positive

• Secured potential $45 million purchase order pipeline for BESS solutions
• First deployment worth up to $13 million scheduled for 2025
• Entering large energy storage market with TAM 10x larger than EV sector
• Leveraging proprietary AI technology for battery management and safety

Negative

• MOU is non-binding, indicating uncertainty in deal completion
• First deployment not expected until 2025
• Project implementation split into two phases, suggesting extended timeline

Insights

Energy Storage Market Analyst

The MOU between SES AI and AISPEX marks a strategic pivot that could significantly impact SES AI's market position and revenue potential. The agreement, targeting up to $45 million in BESS solutions, represents a calculated expansion beyond the EV battery sector into the rapidly growing energy storage market.

The selection of a crypto mining site for the initial deployment is particularly strategic. Crypto mining operations require consistent, high-power supply and face significant energy cost challenges. BESS solutions can help optimize power consumption during peak pricing periods and provide important backup power. With Texas's deregulated energy market and growing crypto mining presence, this deployment could serve as a proof-of-concept for broader adoption.

The company's emphasis on AI-enhanced battery management is a key differentiator. Traditional BESS solutions often struggle with optimization and lifecycle management. SES AI's proprietary AI for Safety Battery Management System could potentially address these challenges by:

• Extending battery lifespan through intelligent charge/discharge cycles
• Reducing operational costs through predictive maintenance
• Enhancing safety through real-time monitoring and early warning systems

The addressable market claim of being 10 times larger than EV batteries is significant. The U.S. energy storage market is experiencing rapid growth, driven by renewable energy integration, grid stability requirements and the proliferation of data centers and crypto mining operations. This expansion could provide SES AI with substantial revenue opportunities beyond their traditional focus on Li-Metal and Li-ion batteries for EVs.

However, it's important to note that this is a non-binding MOU and actual revenue realization will depend on successful project execution and conversion into firm orders. The phased approach, starting with a $13 million project, suggests a measured rollout strategy that allows for technology validation and operational refinement before larger-scale deployments.

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 that it has signed a non-binding Memorandum of Understanding (“MOU”) with AISPEX, a Texas-based Retail Energy Provider (“REP”) with a groundbreaking Virtual Power Plant platform.

Under this partnership, SES is expected to provide high-performance BESS solutions including its proprietary AI for Safety Battery Management System to monitor battery health and safety. The MOU targets a purchase order pipeline of up to $45 million and up to 100 MWh, with the first deployment in 2025 expected to be a project of up to 30 MWh for up to $13 million, to be completed in two phases at a crypto mining site in Texas.

SES AI CEO Qichao Hu commented, “Energy storage is a market opportunity we have been actively exploring as a natural fit to exploit our unique capabilities in materials discovery and superintelligent battery management through AI. Our AI-enhanced batteries can extend the life of BESS, and our AI for Safety can improve BESS battery health and safety.”

Hu added, “We believe that energy storage, especially with fast growing crypto mining and data centers in the U.S., represents a total addressable market that is more than 10 times larger than EV. We have only begun to tap this market and look forward to growing our presence in energy storage with AISPEX and other industry leading providers.”

“This collaboration brings together two pioneers in their respective fields,” said Paul Nie, Founder and CEO of AISPEX Inc. “By integrating SES AI’s advanced BESS technology with our EnerVision platform, we aim to deliver innovative and advanced solutions that address today’s energy challenges while setting the stage for a sustainable future.”

About AISPEX

AISPEX Inc. is a Texas-based retail energy provider specializing in advanced energy management solutions. Its Virtual Power Plant platform, EnerVision, combines state-of-the-art hardware and AI-powered software to offer unmatched energy efficiency and savings for residential, commercial, and industrial customers.

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 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.

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Source: SES AI Corporation

FAQ

What is the value of SES AI's MOU with AISPEX for BESS solutions?

The MOU targets a purchase order pipeline of up to $45 million and up to 100 MWh capacity, with the first deployment valued at up to $13 million for 30 MWh.

When will SES AI begin its first BESS deployment in Texas?

The first deployment is expected to begin in 2025 at a crypto mining site in Texas.

How large is the energy storage market potential for SES AI compared to EV?

According to SES AI, the energy storage market, especially in crypto mining and data centers, represents a total addressable market more than 10 times larger than the EV sector.

What technology will SES AI provide in its BESS solution?

SES AI will provide its proprietary AI for Safety Battery Management System to monitor battery health and safety, along with high-performance BESS solutions.

Where will SES AI's first BESS project be deployed?

The first BESS project will be deployed at a crypto mining site in Texas, to be completed in two phases.