SES AI (US:SES)2024-02-27 03:23Financial Data and Key Metrics Changes - The company reported cash used in operations of $56.4 million for the full year 2023, with capital expenditures of $15.8 million, ending the year with $332 million in liquidity, which supports the company in achieving commercialization milestones [38][62] - Operating expenses for the fourth quarter were $17.9 million, slightly down from the same period last year, with research and development expenses of $7.4 million [63][84] Business Line Data and Key Metrics Changes - The company achieved significant improvements in lithium-metal cell production, producing more large automotive lithium-metal cells per month in just one line in 2023 than during all of 2022 [16] - Avatar AI prediction accuracy increased from 60% in 2022 to 92% in 2023, with a target of 95% for 2024 [23][51] Market Data and Key Metrics Changes - The Urban Air Mobility (UAM) market is identified as a promising opportunity, with the company planning to ship the first batch of UAM cells in 2024, which will be its first commercial products [30][58] - The company targets energy density for UAM cells at least 1100 to 1200 watts per liter, significantly higher than current lithium-ion batteries [9][118] Company Strategy and Development Direction - The company focuses on delivering EV B-sample joint development agreements and aims to sign more agreements later in the year, emphasizing the importance of practical safety and manufacturability [12][22] - The strategy includes using AI to monitor battery health and predict incidents, aiming for near 100% safety guarantee for EV and UAM applications [17][59] Management's Comments on Operating Environment and Future Outlook - Management expressed excitement about the UAM market, highlighting that achieving FAA certification for battery packs will set standards for years to come [6][30] - The company plans to increase quality control checkpoints from 600 to 1,500, integrating more imaging-based checkpoints with Avatar AI [53][32] Other Important Information - The company is converting one of its A-sample lines in South Korea to produce UAM cells, which will incorporate the latest production quality control plan [57] - The company aims to build a robust roadmap for future generations of lithium metal through systematic study of electrolyte chemical structures [54] Q&A Session Summary Question: What is the timeline for B-sample development? - The B-sample development is expected to take about 18 months, concluding around mid-next year [66] Question: How much of the CapEx is allocated to automotive versus UAM? - Most of the CapEx will be focused on the automotive B-sample line, with a smaller portion dedicated to converting an A-sample line for UAM [69] Question: When will the first commercial battery production be available? - The first commercial production for UAM is targeted for the first half of 2025, while EV production is likely in the second half of next year [96] Question: What are the key challenges in scaling lithium-metal anode production? - Challenges include the thin and weak nature of lithium on copper, which complicates conventional production processes [97] Question: How will AI be used to advance battery technology? - AI will be used to ensure safety and improve performance, cycle life, energy density, and for future material development [75]