Battery Technology & Innovation - A company has invented a lithium metal battery that replaces graphite with pure lithium metal and uses a vanadium cathode, sourced outside of China [2][3][6] - The lithium metal battery achieves 400 watt-hours per kilogram, representing a step change in energy density [6][14] - This battery technology is positioned as the third commercialized battery type, aiming to displace lithium-ion batteries [7] Supply Chain & Manufacturing - The United States currently lacks the capacity to produce rare earths and battery materials at scale, leading to dependence on China for graphite, a key component in lithium-ion batteries [1][2][5] - The company's battery materials are 62% less expensive than those sourced from China [9] - The battery is projected to cost approximately $27 per kilowatt-hour at the materials level [9] - Manufacturing costs are expected to be substantially lower than lithium-ion batteries due to the elimination of formation cycles, which constitute 35% of CapEx in lithium-ion battery facilities [9] Strategic & Governmental Support - The company is building a prototype pilot facility to scale up lithium metal production from brine and integrate it into battery manufacturing [11][12] - There is broad support from the US administration for a domestic battery supply chain, particularly for military applications, given the current stockpile of only 30 days of batteries [13][14] - The Ex-Im Bank has issued a letter of interest to fund the company's first gigawatt-hour production facility [14]

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]