SES AI (NYSE:SES) FY Conference Transcript

SES AI (NYSE:SES) FY Conference Summary Company Overview - Company: SES AI - Industry: Battery Technology - Focus: Accelerating energy transition through AI, specializing in lithium metal battery chemistry and energy storage solutions Key Points Industry and Market Insights - The energy storage system (ESS) market is projected to be over 10 times the size of the electric vehicle (EV) market [2][3] - The battery markets for ESS and drones are expected to experience significant growth [3] - The company is uniquely positioned due to over a decade of experience in battery technology and AI integration [2] Financial Performance - In the first three quarters of 2025, SES AI reported a revenue of $16.4 million and provided guidance of $22.5 million for the full year [3] - The company anticipates doubling its revenue in 2026 compared to 2025 [34] Product Development and Innovations - SES AI has developed a platform called Molecular Universe, which focuses on material discovery and battery health management [3][6] - The company has made six breakthroughs in battery materials, enhancing performance for various applications including EVs, drones, and consumer electronics [8][9] - The company has established three business units focusing on ESS, drones, and materials to drive revenue generation [6][12] Strategic Partnerships and Acquisitions - SES AI acquired UZ, a company with strong hardware capabilities, to enhance its ESS offerings [7][18] - The partnership with HySun aims to commercialize materials discovered through Molecular Universe [9][27] Market Opportunities - The company sees military drones and data centers as the most exciting market opportunities [13][14] - SES AI is focusing on NDAA-compliant cells, which are priced 2 to 3 times higher than non-compliant cells [15][16] - The company is targeting about 100 key accounts for NDAA-compliant cells, focusing on larger clients rather than numerous small accounts [16] Technology and Competitive Advantage - SES AI's Molecular Universe is the first AI for science platform that has made actual breakthroughs in material discovery, unlike other platforms that are still in development [9][11] - The company emphasizes the importance of having a combination of model, data, and domain expertise to succeed in the AI for science space [11] Future Outlook - SES AI aims to create a closed-loop system integrating hardware and software solutions for data centers and commercial applications [17][18] - The company plans to leverage its software for recurring revenue through updates and maintenance subscriptions [23] - SES AI is confident in its ability to achieve break-even cash flow within the next one to two years [34] Conclusion - The battery industry is undergoing a significant transition, with SES AI focusing on ESS, drones, and materials as key growth areas [34] - The integration of AI with battery technology presents a unique opportunity for SES AI to capitalize on emerging market trends and drive innovation in energy storage solutions [34]