- SES AI was founded on April 17th, 2012, originally as
SolidEnergy Systems
- Over the past 10 years, SES AI has been at the forefront of
Li-Metal technology and building a global ecosystem
SES AI (NYSE: SES) (“SES”), a global leader in the development
and manufacturing of high-performance lithium-metal (Li-Metal)
rechargeable batteries for electric vehicles (EVs) and other
applications, celebrates its 10th anniversary and hosts a Li-Metal
Batteries Panel. Please see logistics information below:
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20220413005609/en/
(Graphic: Business Wire)
US
China
Korea
April 20th, 2022
April 21st, 2022
April 21st, 2022
2:00pm-2:40pm EDT
10:00am-10:40am GMT+8
2:00pm-2:40pm KST
https://youtu.be/ZAyY-fYUZsA
See attached QR Code.
https://youtu.be/L-8WGTYT7h8
Agenda
- 2:00pm-2:10pm EDT: opening
video and messages from strategic investors
1.
Kent Helfrich – Chief Technology
Officer, General Motors
2.
Chang Hwan Kim – Head of Battery
Development, Hyundai Motors
3.
Yoshiya Josh Fujiwara – Head of
Innovative Research Excellence, Honda Motors
4.
Noah Chan – Director of
Investment, Foxconn
5.
Frank Lee – Director of Corporate
Development, Tianqi Lithium
6.
Yung Hoon Suh – Head of Advanced
Material Investment, SK Inc.
7.
Anand Kamannavar – Global Head of
Applied Ventures, Applied Materials
8.
Jim Cushing – General Manager of
Energy Storage Solutions, Applied Materials
9.
Robert Friedland – Founder &
Co-chairman, Ivanhoe Mines
- 2:10pm-2:40pm EDT: Li-Metal
batteries panel
1.
Mark Newman (Moderator, former
Bernstein senior analyst)
2.
Dr. Shirley Meng (Professor,
University of Chicago)
3.
Dr. Yong Che (Co-founder &
CTO, Enpower)
4.
Maciej Jastrzebski (Co-founder
& CEO, Li-Metal)
5.
Emilie Bodoin (Founder & CEO,
Pure Lithium)
6.
Dr. Qichao Hu (Founder & CEO,
SES AI)
Letter to Shareholders:
History of SES
2012 – 2013: MIT Inception
It all started in Lab 4-061 in the basement of building 4 at
MIT. Prof. Donald Sadoway had been working on Solid Polymer
Electrolyte (SPE) Li-Metal batteries the late 1990s. His work was
accelerated in 2007 when the Department of Energy boosted its
research funding for batteries and MIT established the MIT Energy
Initiatives. I first worked on photovoltaics at Harvard from 2007
to 2009 and was fired twice for failure to publish, dropped out of
Harvard, and serendipitously joined Prof. Sadoway’s group. This is
where I did my doctoral and postdoctoral research on Solid Polymer
Ionic Liquid (SPIL) Li-Metal batteries. We incorporated SolidEnergy
Systems on April 17th, 2012, used the award money from business
plan competitions to hire a small team, took the worldwide
exclusive license from MIT, while we eventually dropped the
license, the fundamental studies done at MIT are at the core of our
Li-Metal development today.
2013 – 2016 (1st 3yr): Material R&D, Series A/B, A123
Partnership
When we were starting, the American battery hero A123 had just
gone bankrupt, and it seemed like no one was going to invest in
another MIT battery spinoff. But A123’s R&D facility in
Waltham, MA (about a 30 minute drive from MIT) had one of the best
prototyping lines in North America and it was mostly unused. We
went there every day and absolutely loved it. We learned how to use
the equipment and built our first Li-Metal R&D samples.
We were rejected by almost every major US-based VC. Eventually
raise our Series A round from Singapore-based Vertex Ventures and a
Shanghai-based family office Longsiang. We formalized our
relationship with A123. They became our landlord as we officially
rented space in their Waltham R&D facility.
During the three years at A123, we dropped Solid State Li-Metal
as our focus due to fundamental challenges in manufacturability and
discovered a novel high concentration solvent-in-salt electrolyte,
a few national labs also developed a similar concept around this
time. We also mistakenly set a “make materials not batteries”
business model, after seeing the catastrophic failure of A123. Our
business model evolved to eventually include making batteries,
together with materials, software, and recycling. The high
concentration solvent-in-salt electrolyte would remain at the core
of our development until today.
We started attracting the interest and confidence of automakers,
and we raised a Series B round from General Motors and Shanghai
Auto. We also realized how expensive it was to source our thin
lithium foil and partnered with Applied Materials to develop
evaporation equipment and processes.
2016 – 2019 (2nd 3yr): Cell R&D, Series C/C+
We realized the importance of treating Li-Metal batteries as a
system (the batteries themselves and the ecosystem around them) and
building cells and “making the whole thing work”, and not relying
on larger cell makers. We moved out of A123 and built our new
independent facility in Woburn, which later became our global
headquarters, and started developing Hermes™, which were 4Ah pouch
cells that would become our platform for new material
development.
We raised a Series C round from Temasek and Tianqi Lithium, one
of the largest lithium producers in the world. We also raised a
Series C+ round from SK Inc (“SK”). SK, which used to be an oil
company, had insights and strategy around the global supply chain
and would eventually impact our own strategy to build a Mine-to-Men
AI software. SK would eventually become our largest investor.
During this period, we started working with an undisclosed
Li-ion equipment vendor in Korea on the Li-Metal cell assembly
process and equipment. This would lay the groundwork for our pilot
lines in SES Korea and Shanghai Giga, building and testing Apollo™,
demonstrating the world’s first 100+ Ah Li-Metal cells,
manufacturing quality control and data collection for Avatar™
(AI-powered safety software), and proving the manufacturability of
Hybrid Li-Metal since we made all our Li-Metal cells using Li-ion
process and equipment.
We also started sending cell samples to potential customers
(very rare in Li-Metal industry at that time), and built a
transparent and data-driven culture, we never won contracts based
on slides or a sales pitch. We won based on superior performance
validated by 3rd party and customer test data.
2019 – 2022 (3rd 3yr): Pre-A & A-sample, Global
Expansion, Covid, AI Software, Series D/D+/SPAC
Our focus on cell development in addition to material eventually
paid off. We entered Pre-A sample joint development (JDA)
agreements with General Motors, Hyundai and Honda in 2019 to 2020,
and all of them became A-sample JDAs in 2021 (General Motors in
March, Hyundai in July and Honda in December).
To leverage the supply chain and engineering and manufacturing
efficiency and talent in China and Korea, we set up SES Shanghai in
2019 in the “auto town” of Jiading (less than a 2 hour drive from
Tesla Shanghai Giga, Volkswagen, General Motors, Nio, Shanghai
Auto, CATL, Gotion, among others). We expanded SES Shanghai to
Shanghai Giga in November 2021, completed Shanghai Giga Phase I
(0.2 GWh) and achieved ready-to-use (RTU) in March 2022, and expect
to complete Phase II (1 GWh) and achieve RTU in 2023. We also
started SES Korea in January 2022 and expect to complete and
achieve RTU later this year.
Our Shanghai and Korea teams have shown incredible dedication.
Despite Covid-related quarantines and lockdowns. They worked
throughout spring festival and other holidays to achieve RTU and
deliver data for our JDAs. In 2020 during the height of Covid, when
we had to cut all SES Shanghai employee salaries and the future
didn’t look bright as automakers were also cutting funding, not a
single SES Shanghai employee left.
Our Boston team also made incredible progress on key materials
R&D. We developed Gen 1 to Gen 3 electrolytes from 2013 to
2019, and from Gen 4 to Gen 15+ from 2019 to 2022. SES Shanghai
Giga and Korea will be the platforms for Apollo™ and Avatar™,
serving the JDAs with automakers, while SES’s Boston, our
headquarters, continues to focus on fundamental R&D
Hermes™.
Today SES builds more Li-Metal cells than any other company
thanks to our highly efficient SES Shanghai Giga and Korea
facilities. We have also been systematically collecting valuable
data on Li-Metal performance under different temperature, pressure,
current density, and other environments. This has naturally led to
the development of AI-powered software that can monitor battery
health and predict safety incidents. We are installing IOT sensors
and inspection tools throughout our manufacturing lines and on
testing equipment to collect data that normally would be missed and
are developing both physics-based and machine learning-based
algorithms.
In 2021, we raised Series D and D+ rounds led by General Motors
and Hyundai, and went public through a SPAC merger with Ivanhoe
Capital Acquisition Corp. The anchor investors to our SPAC PIPE
included six automakers, namely General Motors, Hyundai, Honda,
Geely, Foxconn, and Shanghai Auto, and also included a few
strategic investors such as Koch, and affiliates of LG and SK.
2022 – 2025 (4th 3yr): B & C-sample, Supply Chain, and
Beyond
With approximately $450 million cash on our balance sheet at
close of our SPAC merger, and deep capabilities in science,
engineering, manufacturing, supply chain and software across three
locations, we have never been in a stronger position. We are
confident that we will deliver to our JDA automakers A-sample cells
that meet all technical specs this year, B-sample cells, and
modules in 2023, C-sample cells, modules, and vehicles in 2024, and
start commercial production in 2025.
We are also working with our partners to build two supply chains
around lithium foil, a global China-inclusive one and a North
American (China-free) one. We intend to form a consortium of global
Li-Metal and high silicon Li-ion battery companies, and these
supply chains will help address the cost and availability of
lithium foils for the consortium.
On Avatar™, what started out as an algorithm developed to
monitor and optimize the battery environment (electrochemical,
mechanical, and thermal) to predict safety incidents, evolved on
its own into something much greater than we imagined, a Mine-to-Men
AI software.
This Mine-to-Men AI software allows us to track all data from
mines (carbon footprint, raw material cost, source, sustainability,
etc.), to battery materials (impurity, water content, cost, etc.),
to battery manufacturing (very detailed quality control and data
tracking at individual cell level), to vehicle data (impact of
driver behavior on battery health, optimizing battery environments
to improve battery health, etc.), to recycling (the used batteries
become the mine for future batteries). The data we collect will
continuously train Avatar™ and make it more accurate. This can also
potentially be monetized to create entirely new business models
such as Battery-as-a-Service BaaS, where all the data analytics
around raw material cost, carbon footprint, battery health, driver
behavior, etc., can all be factored into leasing economics.
We are only scratching the surface. As we continue to push the
boundaries of material science (Hermes™) and engineering (Apollo™),
our Mine-to-Men AI software (Avatar™) seems to evolve on its own.
It is entirely plausible that Avatar™ will be applied to not just
Li-Metal batteries but to all EV batteries, and as the global EV
industry scales from 100s of GWh to 1000s of GWh, this data
explosion will help Avatar™ evolve exponentially faster, and
eventually develop its own consciousness.
In the past 10 years, we have built a solid foundation. We do
not know what the next 10 years will hold for us, but we believe we
are at the cusp of a seismic change in the industry. We sincerely
appreciate everyone’s support and trust. We will continue to
innovate, deliver, and evolve. The future will be greater than we
can imagine.
Forward-looking statements
All statements other than statements of historical facts
contained in this letter are “forward-looking statements.” These
forward-looking statements include, without limitation, statements
relating to expectations for future financial performance, business
strategies or expectations for our business. These statements are
based on the beliefs and assumptions of the management of SES.
Although SES believes that its plans, intentions and expectations
reflected in or suggested by these forward-looking statements are
reasonable, it cannot assure you that it will achieve or realize
these plans, intentions or expectations. These statements
constitute projections, forecasts and forward-looking statements,
and are not guarantees of performance. Such statements can be
identified by the fact that they do not relate strictly to
historical or current facts. When used in this letter, words such
as “anticipate”, “believe”, “can”, “continue”, “could”, “estimate”,
“expect”, “forecast”, “intend”, “may”, “might”, “plan”, “possible”,
“potential”, “predict”, “project”, “seek”, “should”, “strive”,
“target”, “will”, “would” and similar expressions may identify
forward-looking statements, but the absence of these words does not
mean that a statement is not forward-looking.
You should not place undue reliance on these forward-looking
statements. Should one or more of a number of known and unknown
risks and uncertainties materialize, or should any of our
assumptions prove incorrect, our actual results or performance may
be materially different from those expressed or implied by these
forward-looking statements. Some factors that could cause actual
results to differ include, but are not limited to the following
risks, which also serves as a summary of the principal risks of an
investment in our securities: changes in domestic and foreign
business, market, financial, political and legal conditions,
including but not limited to the ongoing conflict between Russia
and Ukraine; risks relating to the uncertainty of the projected
financial information with respect to SES; risks related to the
development and commercialization of SES’s battery technology and
the timing and achievement of expected business milestones; the
effects of competition on SES’s business; the ability of SES to
issue equity or equity-linked securities or obtain debt financing
in the future; the ability of SES to integrate its products into
electric vehicles (“EVs”); the risk that delays in the
pre-manufacturing development of SES’s battery cells could
adversely affect SES’s business and prospects; potential supply
chain difficulties; risks resulting from SES’s joint development
agreements (“JDAs”) and other strategic alliances, if such
alliances are unsuccessful; the quickly evolving battery market;
SES’s ability to accurately estimate future supply and demand for
its batteries; SES’s ability to develop new products on an ongoing
basis in a timely manner; product liability and other potential
litigation, regulation and legal compliance; SES’s ability to
effectively manage its growth; SES’s ability to attract, train and
retain highly skilled employees and key personnel; the willingness
of vehicle operators and consumers to adopt EVs; developments in
alternative technology or other fossil fuel alternatives; SES’s
ability to meet certain motor vehicle standards; a potential
shortage of metals required for manufacturing batteries; risks
related to SES’s intellectual property; risks related to SES’s
business operations outside the United States, including in China;
SES has identified a material weakness in its internal control over
financial reporting and may identify material weaknesses in the
future or otherwise fail to maintain an effective system of
internal controls; compliance with certain health and safety laws;
changes in U.S. and foreign tax laws; and the other risks described
in “Item 1A. Risk Factors” in the annual report on Form 10-K for
the fiscal year ended December 31, 2021 filed with the Securities
and Exchange Commission (“SEC”) on March 31, 2022 (the “Annual
Report”) and other documents filed from time to time with the SEC.
There may be additional risks that SES presently knows and/or
believes are immaterial that could also cause actual results to
differ from those contained in the forward-looking statements. In
addition, forward-looking statements reflect SES’s expectations,
plans or forecasts of future events and views only as of the date
of this press release/letter. SES anticipates that subsequent
events and developments will cause its assessments to change.
However, while SES may elect to update these forward-looking
statements at some point in the future, SES specifically disclaims
any obligation to do so. These forward-looking statements should
not be relied upon as representing SES’s assessments as of any date
subsequent to the date of this press release/letter. Accordingly,
undue reliance should not be placed upon the forward-looking
statements.
© 2022 SES AI Corporation
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version on businesswire.com: https://www.businesswire.com/news/home/20220413005609/en/
Investors: Eric Goldstein ericgoldstein@ses.ai
Media: Irene Lam ilam@ses.ai
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