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Research from Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

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<ul><li>SES AI marked an important milestone with its 4Q24 results, transitioning from pure-play R&amp;D to active commercialization.</li><li>The company booked $2 million in revenue at a 63% gross margin from previously announced deals with (1) EV OEMs for battery materials discovery and (2) cells for drones.</li><li>SES AI also noted some of its 4Q cell revenue for drone applications was with SoftBank’s HAPS drone program, which suggests that it is building on the initial traction announced in the Data Blanket deal in this space. </li></ul>

SES AI marked an important milestone with its 4Q24 results, transitioning from pure-play R&amp;D to active commercialization.The company booked $2 million in revenue at a 63% gross margin from previously announced deals with (1) EV OEMs for battery materials discovery and (2) cells for drones.SES AI also noted some of its 4Q cell revenue for drone applications was with SoftBank’s HAPS drone program, which suggests that it is building on the initial traction announced in the Data Blanket deal in this space. 

SES AI Corp. - 4Q Results Mark a 'Phase Transition' from Pure R&D to Commercialization

<ul><li>"AI for Science’ is SES AI’s approach to using the latest cutting-edge GNNs and LLMs to augment battery materials discovery.</li><li>“We can actually map all the physical and chemical properties of the small molecules. We did that, and then recently, we expanded to [electrolytes] for any lithium batteries….</li><li>We’re expanding to lithium-ion for robots, drones, and energy storage. We found that this tool itself is actually really powerful. </li></ul>

"AI for Science’ is SES AI’s approach to using the latest cutting-edge GNNs and LLMs to augment battery materials discovery.“We can actually map all the physical and chemical properties of the small molecules. We did that, and then recently, we expanded to [electrolytes] for any lithium batteries….We’re expanding to lithium-ion for robots, drones, and energy storage. We found that this tool itself is actually really powerful. 

SES AI Corp. - CEO Qichao Hu Talks About Battery Materials Discovery, New Markets Beyond EVs

<ul><li>SES signed an MOU with Texas-based ‘virtual power plant’ and retail energy provider AISPEX to provide up to $45 million in next-gen Li-Metal and Li-Ion batteries for a crypto mining location in Texas.</li><li>The first phases of the deal, which are worth ~$13 million, expect to be delivered in 2025.</li><li>The total pipeline is expected to deliver 100MWh of power, with the first phases constituting 30MWh of power.</li></ul>

SES signed an MOU with Texas-based ‘virtual power plant’ and retail energy provider AISPEX to provide up to $45 million in next-gen Li-Metal and Li-Ion batteries for a crypto mining location in Texas.The first phases of the deal, which are worth ~$13 million, expect to be delivered in 2025.The total pipeline is expected to deliver 100MWh of power, with the first phases constituting 30MWh of power.

SES AI Corp.: BESS MOU with AISPEX to Deliver up to $13MM in 2025 for 30MWh

<ul><li>SES AI inks its first commercial deal for its next- generation Li-Metal and Li-ion batteries with AI drone startup Data Blanket.</li><li>This is a significant event in SES AI’s history. With this deal, the company has demonstrated that its next-generation batteries, designed using its AI for Science battery materials discovery capabilities, can win commercial deals (and not just pilot projects or development projects) in the drone space.</li><li>Deal specifics are sparse, but we know that revenue <span style="font-size: var(--content-font-size);">recognition began in December and that the current deal </span><span style="font-size: var(--content-font-size);">should continue to generate revenue through mid-2025.</span></li></ul>

SES AI inks its first commercial deal for its next- generation Li-Metal and Li-ion batteries with AI drone startup Data Blanket.This is a significant event in SES AI’s history. With this deal, the company has demonstrated that its next-generation batteries, designed using its AI for Science battery materials discovery capabilities, can win commercial deals (and not just pilot projects or development projects) in the drone space.Deal specifics are sparse, but we know that revenue recognition began in December and that the current deal should continue to generate revenue through mid-2025.

SES AI Corp: Secures Commercial Deal for Li-Metal and Li- Ion Batteries for Drones with Data Blanket

<ul><li>SES AI’s AI for Science platform should generate revenue with the firm’s EV OEM partners beginning in the 4Q24.</li><li>SES AI announced development contracts totaling up to $10 million (in non-recurring revenue) with two existing automative OEM partners involving the use of firm’s AI for Science materials discovery platform.</li><li>The new contracts cover the development of both Li-Metal and Li-ion electrolyte chemistries, which itself constitutes an expansion of the firm’s opportunity set and potential total address market. </li></ul>

SES AI’s AI for Science platform should generate revenue with the firm’s EV OEM partners beginning in the 4Q24.SES AI announced development contracts totaling up to $10 million (in non-recurring revenue) with two existing automative OEM partners involving the use of firm’s AI for Science materials discovery platform.The new contracts cover the development of both Li-Metal and Li-ion electrolyte chemistries, which itself constitutes an expansion of the firm’s opportunity set and potential total address market. 

SES AI Corp.: AI for Discovery Takes a Step Forward with EV OEM Partners

United States

SES AI Corporation provides energy storage solutions. The Company develops and manufactures lithium-metal (Li-Metal) rechargeable batteries for electric vehicles (EVs) and other applications. SES AI serves customers worldwide.

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SES AI Corp (SES US)

SES AI Corp. - 4Q Results Mark a 'Phase Transition' from Pure R&D to Commercialization

SES AI marked an important milestone with its 4Q24 results, transitioning from pure-play R&D to active commercialization.

Water Tower Research

SES AI Corp. - CEO Qichao Hu Talks About Battery Materials Discovery, New Markets Beyond EVs

"AI for Science’ is SES AI’s approach to using the latest cutting-edge GNNs and LLMs to augment battery materials discovery.

Water Tower Research

SES AI Corp.: BESS MOU with AISPEX to Deliver up to $13MM in 2025 for 30MWh

SES signed an MOU with Texas-based ‘virtual power plant’ and retail energy provider AISPEX to provide up to $45 million in next-gen Li-Metal and Li...

Water Tower Research

SES AI Corp: Secures Commercial Deal for Li-Metal and Li- Ion Batteries for Drones with Data Blanket

SES AI inks its first commercial deal for its next- generation Li-Metal and Li-ion batteries with AI drone startup Data Blanket.

Water Tower Research

SES AI Corp.: AI for Discovery Takes a Step Forward with EV OEM Partners

SES AI’s AI for Science platform should generate revenue with the firm’s EV OEM partners beginning in the 4Q24. SES AI announced development...

Water Tower Research

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