SES AI Corporation

Hello, everyone. The SES AI first quarter 2025 earnings base and call will begin shortly. If you would like to ask a question, please press star followed by one on your telephone keypad. Thank you for your patience. Hello, everyone, and welcome to the SES AI first quarter 2025 earnings release and call. My name is Nadia, and I'll be coordinating the call today. If you would like to ask a question, please press star, followed by one on your telephone keypad. I will now hand over to your host, Kyle Pilkington, Chief Legal Officer to begin. Kyle, please go ahead.

Hello, everyone, and welcome to our conference call covering our first quarter 2025 results. Joining me today are Qi Chaohu, founder and chief executive officer, and Jing Nilas, chief financial officer. We issued our shareholder letter yesterday afternoon after market close, which provides a business update as well as our financial results. You'll find a press release with a link to our shareholder letter and today's conference call webcast in the investor relations section of our website at ses.ai. Before we get started, this is a reminder that the discussion today may contain forward-looking information or forward-looking statements within the meaning of applicable securities legislation. These statements are based on our predictions and expectations as of today. Such statements involve certain risks, assumptions, and uncertainties which may cause our actual or future results and performance to be materially different from those expressed or implied in these statements. The risks and uncertainties that could cause our results to differ materially from our current expectations include, but are not limited to, those detailed in the latest earnings release and in our SEC filings. This morning, we will review our business as well as results for the quarter. With that, I'll pass it over to Chi Chau.

Thanks, Kyle. Good morning, and thank you for joining us on our first quarter 2025 earnings call. In the first quarter, SESAI achieved a new record for revenue with $5.8 million. This was a great start to what we expect will be a transformational year for SESAI. In addition, we have announced a battery materials discovery software and service platform. And on April 29th, we will be launching our molecular universe demonstration at 11 a.m. You can find more details on our website. First, EV. During the first quarter, we booked revenue from contracts with two OEM partners to develop AI-enhanced lithium metal and lithium ion batteries for EVs. And some highlights include, we are on track to complete D-sample and in discussion about commercial next steps with two OEMs. We have deployed our AI for Science material discovery end-to-end capability to develop new electrolytes to improve critical battery performance measures such as cycle life and safety of lithium metal and silicon lithium ion batteries for two OEMs. And based on the successful track record with these two OEMs, we are packaging our AI for Science material discovery end-to-end capability into a software and service platform called Molecular Universe. This allows us to mass produce material discovery and development service, our largest and most profitable revenue component, enabling us to rapidly expand our service from just one chemistry and only two OEMs in one market to potentially all OEMs, all battery makers, all electrical companies, consumer electronics companies, and many more across all battery chemistries. And with fierce global EV competition and new safety regulations, through our material discovery and development services, we can deliver commercially practical weaning solutions that help OEMs differentiate. And even before the global release of molecular universe, there are already one dozen companies, including OEMs, battery and electronic companies, doing early access testing. And now to UAM drones and robotics. I'm very excited about the tremendous response we have received following our introduction of the AI-enhanced 2170 symmetrical cell for humanoid robotics and drones applications. We also produced pouch cells for customers in drones and UAMs from our own lines that were previously converted from EVA sample lines. In particular, the strategic value of our facility in Chungju, South Korea, has proven to be particularly valuable to many of our customers, given the current geopolitical uncertainty and tariff tension. Also, these cells use electrical materials discovered through Molecular Universe. I would like to turn to the upcoming launch of our Molecular Universe software and service platform, as I mentioned, will be released on April 29th. The motivation for Molecular Universe is to mass produce material discovery and development service, our largest and most profitable revenue component. This platform delivers commercially practical winning solutions that help users compete. Molecular Universe is not contract R&D. Rather, it's an end-to-end service ranging from material discovery to cell manufacturing. It is A sample, B sample, C sample, SOP at scale. Its benefits are not just applicable to one chemistry, lithium metal, and one market EV, but can be applied to all battery chemistries and all battery markets. We will have the global release of the first version of Molecular Universe, MU0, on April 29. The live demo will explain MU0's features and pricing structures. We look forward to reporting more progress and details on the Molecular Universe during the second quarter. To close, I want to highlight some of our plans for 2025 and beyond. First, we are in a strong cash position to execute on our vision. We have evolved from manufacturing CapEx heavy plans for EV and UAM at scale to a scalable software and service business model. We have focused our operating costs on enhancing our commercial team to pursue greater opportunities to expand revenue in 2025 to 2027. Our new molecular universe software and service platform has proven to be successful with two OEMs already and can more efficiently deliver commercially practical winning solutions to all OEMs across all battery chemistries, both lithium metal and silicon lithium ion. We expect the molecular universe platform to allow us to rapidly grow our largest and most profitable revenue component. So thank you for your continued interest in SES AI, and now I'll turn it over to Jing for financial updates.