3Q23 Results: Transition to B Sample on Track and Urban Air Mobility (UAM) on the Rise
SES has made significant advancements in engineering and materials, particularly in the cathode, resulting in high stability and improved safety for high Ni cathodes. The company has also developed new technologies for pouch cell engineering, electrolyte, lithium metal anode protection, and charging protocols, reducing the risks associated with thermal runaway in both Li-Metal and Li-ion batteries. Despite the challenges and the trade-off between energy density and safety in the battery industry, SES aims to improve safety without compromising other parameters, opting for a high-energy density approach and overcoming difficulties to achieve its goal. SES is on track to transition to B samples and expects to sign a joint development agreement with one of its OEM customers. The first B-sample for Li-Metal in automotive history would mark a ground-breaking moment for SES, the battery industry, and transportation. At the upcoming Battery World 2023 in December, SES will demonstrate some exciting videos of high-energy density Li-Metal batteries passing very rigorous safety tests. These breakthroughs should ultimately be major milestones toward the eventual commercialization of large-capacity, high-energy density Li-Metal cells for automotive applications. Regarding manufacturing, the company plans to expand A-sample lines to produce 1,000 large capacity 100Ah cells per line per month, which is double its previous output, and is expected to start in November at its Chungju facility in South Korea. The cells will be used for both internal testing and OEM sample qualification, and avatar safety prediction algorithm training. By progressing from A-samples to B-samples and forming joint development agreements (JDAs) with EV OEMs, SES has established a strong foundation in technology, process, engineering, quality, and manufacturing. This foundation allows for expansion into other applications such as drones and the Urban Air Mobility (UAM) market, presenting early-stage commercialization opportunities. Updated guidance for total cash usage in 2023 is now $85-105 million, including cash usage from operations of $65-75 million and capital expenditures of $20-30 million. The bulk of capital expenditures for line 4 and line 5 is expected to be in the first half of calendar year 2024.
Water Tower Research is built on the foundation of democratizing information flow. We bridge the growing information gap between companies and investors through our investor engagement strategies and open-access research platform.
Our research analysts are Wall Street veterans with the experience and knowledge to work with companies and investors in tandem. We provide access to the information and content that anchors the due diligence process for both professional money managers and individual investors. We leverage traditional research distribution channels and the best of modern digital strategies and tactics to amplify this information flow globally to engage all categories of investors and stakeholders.
Information flow is the foundation for creating investor awareness, knowledge, and engagement. Our mission is to help companies and investors have the tools they need and achieve their goals.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.