We have some tension here. Bloomberg's Joe Doe. The United States cannot produce rare earths in the volumes that are required.This is your whole raison d'etre. Emily very much for having me. Thank you.And he's exactly right. We don't produce anything in this country at scale that is used in a battery or that is a rare earth. Exactly what he said is applicable to our battery materials.So what pure lithium has done is we have invented our way out of this problem. We know that you cannot copy paste China's lit ...

Financial Data and Key Metrics Changes - The company reported Q1 2025 revenue of $5.1 million, exceeding the midpoint of guidance [19] - Adjusted EBITDA loss was $22.2 million, near the high end of the guidance range [19] - Non-GAAP net loss per share was $0.15, at the high end of the guidance range [19] - Cash used in operations totaled $16.9 million, with approximately $248 million in cash and equivalents at the end of the quarter [19] Business Line Data and Key Metrics Changes - The company commenced development of a custom smartphone cell for a lead customer, with qualification samples expected to be delivered later this quarter [8][12] - Significant progress was made in operations, with Fab Two in Malaysia achieving ISO 9001 certification and critical yield improvements [9][13] - The company delivered its first smart eyewear customer samples and is expanding into handheld computer and scanner segments [14] Market Data and Key Metrics Changes - The company noted no material impact from recent global trade developments, as most planned sales are concentrated in Asia [10] - Increased interest from U.S. customers has been observed, particularly in light of tariff developments [30] Company Strategy and Development Direction - The company is strategically focused on the smartphone market, which is seen as the fastest path to utilize Fab Two while maintaining pricing on value [14] - The acquisition of manufacturing assets in South Korea is expected to enhance capacity and support local defense customers [9][11] - The company aims to leverage its unique battery architecture to achieve significant energy density gains compared to competitors [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's growth trajectory, citing strong customer engagement and a solid capital base [18] - The company is focused on delivering qualification samples to customers and is engaged in close collaboration with smartphone OEMs [68] - Management anticipates that successful qualification of smartphone batteries will facilitate entry into other markets, such as PCs and AR/VR [116] Other Important Information - The company will no longer provide guidance for GAAP EPS but will continue to provide non-GAAP EPS guidance [20] - A new financial supplement document has been published to compile historical financial information [21] Q&A Session All Questions and Answers Question: Can you share any updates on EX3M in terms of energy density, release, or sampling timelines? - The company expects to sample EX3M by the end of this year, with the basic chemistry and anodes and cathodes already defined [23][24] Question: What is the status of the first major OEM cell phone development agreement announced 05/01/2024? - The company is working with two cell phone OEMs, with one having provided actual cell dimensions for mass production by the end of the year [25][26] Question: How have customer conversations developed since the tariffs were implemented? - The company has not seen concerns from current customers in China and has noted increased interest from U.S. customers [29][30] Question: Can you talk about the importance of the coating line from the SolarEdge acquisition? - The acquisition has provided a significant footprint and new coating capacity, which is crucial for ramping production and optimizing new materials [38][41] Question: Can you share financial metrics around the recent acquisition in South Korea? - The acquisition was an asset purchase for $10 million, significantly increasing capacity for military and other market cells [51] Question: What is the revenue profile expected in 2026? - The company is focusing on the smartphone market first, with plans to address other markets like handheld computers and AR/VR as they ramp up production [60] Question: What milestones are in front of you for shipping production to customers? - Key milestones include delivering samples in June and passing customer qualifications between June and August [110][112] Question: Can you provide an update on cycle life and competitive benchmarks? - The company is competitive in the 800 watt-hour per liter range, with cycle life varying based on customer usage profiles [95][100] Question: What is the status of the defense pipeline? - The company is receiving increased interest and has started shipping samples to defense customers, with a significant opportunity anticipated [101][104] Question: Is the SolarEdge acquisition a working factory? - Yes, the SolarEdge facility is operational, producing cells for defense applications and augmenting the company's capacity [107]

Financial Data and Key Metrics Changes - The company reported Q1 2025 revenue of $5.1 million, exceeding the midpoint of guidance [9] - Adjusted EBITDA loss was $22.2 million, near the high end of the guidance range [19] - Non-GAAP net loss per share was $0.15, at the high end of the guidance range [19] - Capital expenditures for the quarter totaled $6.3 million, with cash used in operations amounting to $16.9 million [19] - The company ended the quarter with approximately $248 million in cash, cash equivalents, and marketable securities [19] Business Line Data and Key Metrics Changes - The company commenced development of a custom smartphone cell for a lead customer, with qualification samples to be delivered later this quarter [9][12] - Significant progress was made in operations, with Fab Two in Malaysia achieving ISO 9001 certification and critical yield improvements [10][14] - The company delivered its first smart eyewear customer samples and is expanding into handheld computer and scanner segments [15] Market Data and Key Metrics Changes - The company noted no material impact from recent global trade developments, as most planned near-term sales are concentrated in Asia [11] - Increased interest from U.S. customers has been observed, particularly in light of tariff developments [31] Company Strategy and Development Direction - The company is strategically focused on the smartphone market, which is seen as the fastest path to utilize Fab Two while maintaining pricing on value [14] - The acquisition of additional manufacturing assets in South Korea is expected to enhance the company's manufacturing footprint and support defense local customers [10][12] - The company aims to leverage its technology to meet stringent requirements in the smartphone market, which will facilitate entry into adjacent markets [58][60] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's growth trajectory, citing strong customer engagement and a solid capital base [18] - The company is focused on delivering qualification samples to customers by June, which will inform future production volumes [70] - Management highlighted the importance of customer feedback in refining product offerings and meeting market demands [69] Other Important Information - The company will no longer provide guidance for GAAP EPS but will continue to provide non-GAAP EPS guidance [20] - A new financial supplement document compiling historical financial information has been published for transparency [21] Q&A Session Summary Question: Updates on EX3M energy density and sampling timelines - The company expects to sample EX3M by the end of the year, with defined chemistry and anodes locked in [24][25] Question: Status of the first major OEM cell phone development agreement - The company is working closely with two cell phone OEMs, with one customer’s cell dimensions finalized for mass production by the end of the year [26][27] Question: Customer conversations post-tariff implementation - No concerns have been raised by Chinese customers, and there is increased interest from U.S. customers seeking domestic manufacturing options [30][31] Question: Financial metrics around the recent acquisition in South Korea - The acquisition was an asset purchase for $10 million, significantly expanding manufacturing capacity [52] Question: Revenue capacity following the SolarEdge acquisition - It is too early to quantify potential revenue capacity, but the acquisition dramatically increases capacity and supports local defense opportunities [80][81] Question: Update on high-volume manufacturing line throughput - Fab Two is progressing well, with yields improving and production focused on custom cells for customers [87][90] Question: Competitive positioning in energy density and cycle life - The company’s batteries are competitive in the 800 watt-hour per liter range, with ongoing improvements in cycle life and fast charging capabilities [100] Question: Defense pipeline and geographic interest - The company is receiving increased interest in defense applications, with sample orders being shipped for qualification [105]