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Intel for EV batteries: SES AI develops and produces advanced batteries, the crucial power component for electric vehicles, much like Intel provides the foundational processors for computers.

Qualcomm for EV power: Like Qualcomm provides the core chip technology for smartphones, SES AI develops the advanced battery technology that powers electric vehicles.

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• Lithium-metal rechargeable batteries: SES AI develops and produces high-performance Lithium-metal rechargeable batteries primarily for electric vehicles and other applications.

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SES AI Corporation primarily sells its high-performance Lithium-metal rechargeable batteries and related technology to other companies, specifically major automotive manufacturers (OEMs) for use in electric vehicles.

Its major customers and strategic partners, with whom it has joint development agreements for A-sample battery programs, include:

• General Motors Company (Symbol: NYSE: GM)
• Hyundai Motor Company (Symbol: KRX: 005380 / OTCMKTS: HYMTF)
• Honda Motor Co., Ltd. (Symbol: NYSE: HMC)

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Dr. Qichao Hu, Founder, Chairman & CEO

Dr. Qichao Hu is the founder and CEO of SES AI, which was founded in 2012 as SolidEnergy Systems. He holds a Bachelor of Science in Physics from the Massachusetts Institute of Technology (MIT) and a Ph.D. in Applied Physics from Harvard University. Dr. Hu has been recognized as one of Forbes 30 Under 30 and MIT Technology Review's Innovators Under 35. He led SES AI to establish joint development agreements with major automotive companies including General Motors, Honda, and Hyundai. His background includes extensive work in clean energy and battery technology, leading to the establishment of SES AI out of an MIT lab.

Jing Nealis, Chief Financial Officer

Jing Nealis possesses 18 years of global finance and operations experience in both private and public companies. She has guided several emerging energy transition companies through successful scale-up and commercialization phases. Her prior experience includes roles at View, SunPower, Shunfeng, Suntech, and Deloitte. Ms. Nealis also serves on the Board of Directors for Invest Green Acquisition Corp. and Suniva, Inc.

Dr. Hong Gan, Chief Science Officer

Dr. Hong Gan brings 25 years of experience in battery research and development. His key contributions include advancements in silicon-based Li-ion and Li-Metal anode battery technologies, developed during his time at Brookhaven National Lab and Greatbatch Technologies.

Dr. Kang Xu, Chief Technology Officer

Dr. Kang Xu is an MRS Fellow, ECS Fellow, and emeritus ARL Fellow, recognized as one of the world's leading researchers in electrolyte materials and interfacial science. He has authored over 350 papers in this field and has an h-index of 118, receiving numerous awards for his discoveries in electrolyte materials and fundamental understanding of the field.

Kyle Pilkington, Chief Legal Officer

Kyle Pilkington has 16 years of international legal experience, encompassing capital markets, securities law, corporate governance, and mergers and acquisitions (M&A). He previously held positions at International Game Technology, Sullivan & Cromwell, Gibson Dunn, and Baker McKenzie.

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The key risks for SES AI Corporation (symbol: SES) are primarily centered around the significant challenges of commercializing its advanced battery technology, its ongoing financial requirements, and the intense competitive landscape it faces.

1. Commercialization and Production Scale-up

   SES AI's core business relies on successfully bringing its proprietary Lithium-metal (Li-Metal) battery technology to mass production, a transition from lab success to gigawatt-hour scale that is described as a "mammoth technical and financial task" and remains unproven. A significant challenge inherent in Lithium-metal technology is the formation of dendrites, which can drastically reduce battery lifespan and cause short circuits, and while SES AI believes it has addressed this, commercial-scale proof is still pending. Any delays or defects in scaling up mass production could severely impede the company's growth.

2. Financial Health and Cash Burn

   As a company in its pre-commercialization phase, SES AI currently operates at a loss, exhibiting negative operating margins and free cash flow. For example, in Q3 2025, the company reported a net loss of approximately -$22.65 million and an operational loss of $23.01 million, with a cash burn rate from operations of $14.3 million in that quarter alone. Although the company maintained a solid liquidity position of $229 million as of Q2 2025, continued losses could exhaust its capital, necessitating further fundraising through potential share issuance and consequently diluting existing shareholders. The path to achieving profitability is considered a long one.

3. Competition and Technology Obsolescence

   SES AI operates in a highly competitive and capital-intensive industry, facing established battery giants like CATL, LG Energy Solution, and Panasonic, which possess significant scale and capital, as well as other emerging battery technology companies such as QuantumScape and Solid Power. There is also a risk that SES AI's focus on liquid Lithium-metal batteries could be outpaced by the industry's broader movement towards solid-state battery technology, which major competitors are projected to mass-produce by 2027-2028, a direction SES AI ceased researching in 2015. Recent developments also indicate a pivot by SES AI away from EV battery mass production towards energy storage systems, drones, and materials, accompanied by a projected reset in gross margins, highlighting the intense competitive pressures and the need for market adaptation.

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The emergence and potential for rapid scaling of solid-state battery technology by competitors presents a clear emerging threat to SES AI's lithium-metal battery technology. Solid-state batteries, pursued by numerous companies and consortia, aim to offer similar or superior advancements in energy density and safety for electric vehicles compared to lithium-metal batteries. If solid-state technology achieves widespread commercialization and cost-effective production ahead of or more effectively than lithium-metal, it could significantly diminish the market opportunity for SES AI.

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The addressable markets for SES AI's main products, high-performance Lithium-metal rechargeable batteries for electric vehicles and other applications, can be identified by examining the global Lithium-metal battery market and the broader Electric Vehicle (EV) battery market.

Global Lithium-Metal Battery Market

The global Lithium-metal battery market is projected to experience substantial growth. It is estimated to reach a value of approximately USD 6.0 billion in 2025 and is forecasted to grow to USD 25.3 billion by the end of 2031, at a Compound Annual Growth Rate (CAGR) of 24.4% from 2025 to 2031. Other projections indicate the market could grow from USD 11.53 billion in 2024 to USD 68.79 billion by 2030, with a CAGR of 21.9% from 2024 to 2030. Another report suggests the Lithium-metal battery industry could exceed USD 13 billion by 2035, with electric vehicle deployments constituting around 78% of this market. Furthermore, the market is projected to reach USD 152.26 billion by 2035, growing at a CAGR of 21.96% from 2025.

Specifically for Lithium Metal Polymer Batteries, the global market was valued at USD 45.67 billion in 2024 and is projected to reach USD 142.77 billion by 2033, with a CAGR of 13.5% between 2025 and 2033.

Global Electric Vehicle Battery Market

As a primary application for Lithium-metal batteries, the global electric vehicle battery market represents a significant addressable market for SES AI. The global EV battery market was valued at USD 76.59 billion in 2024 and is projected to reach USD 739.31 billion by 2034, expanding at a CAGR of 25.95% from 2025 to 2034. Another estimate placed the global EV battery market size at USD 61.31 billion in 2024, with a projection to reach USD 198.86 billion by 2030, growing at a CAGR of 22.2% from 2025 to 2030. The market is expected to be valued at USD 92.7 billion in 2025 and reach USD 181.8 billion by 2032, growing at a CAGR of 10.1% during this forecast period. Additionally, the EV battery market value was USD 62.5 billion in 2024 and is likely to grow to USD 112.5 billion in 2032, at a CAGR of 7.6% during 2024-2032.

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Expected Drivers of Future Revenue Growth for SES AI (SES)

SES AI Corporation (NYSE: SES) anticipates several key drivers for its revenue growth over the next two to three years, primarily stemming from the strategic expansion and commercialization of its advanced battery technologies and AI-enabled platforms across multiple sectors.

• Expansion of Energy Storage Systems (ESS) Business: The acquisition of UZ Energy is a significant catalyst for SES AI's growth in the energy storage systems market. This segment is projected to be the largest near-term revenue contributor, with expectations for substantial growth by leveraging UZ Energy's existing markets and expanding into new territories, including the United States.
• Growth in the Drone Battery Market: SES AI is actively retooling its manufacturing facilities, such as the Chungju facility, to focus on drone battery production. The company expects increasing volumes and scaling operations in the drone sector to contribute meaningfully to its revenue, particularly in the latter half of the forecast period.
• Commercialization of AI-Enabled Materials via Molecular Universe Platform: The proprietary Molecular Universe AI4Science platform is central to SES AI's strategy, enabling breakthroughs in battery material discovery. The company plans to generate revenue by licensing these advanced materials and selling them to a diverse customer base across electric vehicles, drones, energy storage systems, and consumer electronics, potentially through joint ventures like the one with Hisun New Materials.
• Continued Strategic Development Contracts with Automotive OEMs: While mass production of EV batteries may be on hold for certain immediate plans, SES AI has historically generated significant, high-margin revenue from service agreements and joint development contracts with automotive Original Equipment Manufacturers (OEMs) like Honda and Hyundai for AI-enhanced Li-Metal and Li-ion battery materials and designs. The company's ongoing focus on innovative battery technology suggests the potential for new or expanded development partnerships in the evolving electric vehicle landscape.

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Capital Allocation Decisions (Last 3-5 Years)

Share Repurchases

• In April 2025, SES AI Corporation's Board of Directors authorized a share repurchase program of up to $30 million of its Class A common stock.
• This authorization represented approximately 11% of the company's market capitalization at the time.
• The company's management views the share repurchase program as an "efficient capital allocation tool" that will not impact their liquidity.

Share Issuance

• SES AI consummated its initial public offering (IPO) on January 11, 2021, and its securities began trading on the NYSE.
• On February 3, 2022, Ivanhoe (a SPAC) completed its business combination with SES Holdings Pte. Ltd., after which Ivanhoe changed its name to SES AI Corporation.

Inbound Investments

• In May 2021, a strategic partner made a $2 million equity investment in SES AI.
• Another strategic partner committed $2 million in PIPE (Private Investment in Public Equity) financing in June 2021.
• A major global car manufacturer was the largest single investor in PIPE financing, contributing $3 million in January 2022.

Outbound Investments

• SES AI completed the acquisition of UZ Energy for $25.8 million in fiscal year 2025, aimed at accelerating its entry into the Energy Storage System (ESS) market.

Capital Expenditures

• Capital expenditures were $1.7 million for the six months ended June 30, 2025, and $10.5 million for the six months ended June 30, 2024.
• These expenditures primarily focused on the purchase of lab machinery and equipment, and lab tools and instruments to build out production lines and facilities.
• For 2026, capital expenditures are projected to remain in the "single-digit millions," reflecting a "CapEx-light business model."