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Sep 30, 2022
Ses Ai Q3 2022 Earnings Report
SES AI reported an operating loss in Q3 2022 and continued to focus on developing Li-Metal battery technology.
Key Takeaways
SES AI Corporation reported an operating loss of $21.7 million for the third quarter of 2022, driven by increased general and administrative, and research and development expenses. The company focused on the development of Li-Metal battery technology and AI-powered safety software. They also made progress on mid-2023 milestones, including delivering "A-sample" batteries and transitioning to "B-sample" batteries.
SES Korea pilot facility was completed and ready-to-use in September, producing about 100 large Apollo-based cells.
Shanghai Giga facility was fully operational in Q3 and has produced about 1,000 Apollo-based cells since January.
The company shared 50 Ah cell data with OEM JDA partners and began shipping cells to some partners.
The ability to predict failures in large 50 and 100 Ah cells has increased from 0 to approximately 60% in the past few months.
Forward Guidance
SES AI is focused on achieving mid-2023 milestones and leveraging the Inflation Reduction Act. They are working to deliver and optimize "A-sample" batteries, transition to "B-sample" batteries, and establish supply chains for key materials. The company expects to use cash to support the development of Li-Metal battery technology and AI-powered safety software.
Positive Outlook
- Attractive tax credits and incentives for battery manufacturing and supply chain build-out in North America from the Inflation Reduction Act.
- Good progress on mid-2023 milestones, including delivering "A-sample" batteries and transitioning to "B-sample" batteries.
- Continued development of all aspects of Li-Metal battery technology and AI-powered safety software platform Avatar.
- Expect to end the year with over $350 million of cash.
- Topics at Battery World will include data and performance of our large format cells, AI-based battery health monitoring developments, and further thoughts on our supply chain initiatives.
Challenges Ahead
- The development and building large 50 and 100 Ah cells has been incredibly difficult and, candidly, much harder than we expected.
Historical Earnings Impact
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