SES AI Corporation

Good afternoon. Thank you for attending today's SESAI second quarter 2025 earnings release and call. My name is Jayla, and I'll be your moderator for today. All lines will be muted in the presentation portion of the call with an opportunity for questions and answers at the end. I would now like to turn the conference over to our host, Hal Pinkhamton. Please proceed.

Hello, everyone. Welcome to our conference call covering our second quarter 2025 results. Joining me today are Chi Chau Hu, Founder and Chief Executive Officer, and Jing Niels, the Financial Officer. We issued our shareholder letter just after 4 p.m. this afternoon, which provides a business update as well as our financial results. You'll find a press release with a link to our shareholder letter in today's conference call webcast in the investor relations section of our website at scs.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 afternoon, we will review our business as well as the results for the quarter. With that, I'll pass it over to Chi-Chen.

Thanks, Kyle, and thanks to everyone for joining today. We had another strong quarter with significant progress achieved on key product revenue development and profitability milestones. And recently, in third quarter, we continued that momentum to grow our profitability and revenue through an acquisition agreement that leverages our strength in molecular universe battery materials discovery and safety monitoring capabilities with an established player in the energy storage space. In the first quarter, since the public release of Molecular Universe, I'm pleased to see that we now have more than 30 companies that have begun trial testing the enterprise level and many more in the pipeline. Our mission is to accelerate the world's energy transition through material discovery and battery management. We're excited to see Molecular Universe helping human scientists to be more creative and develop new products much faster. Since our launch of AI a year ago, we have been progressing through four stages. The first is Chatbot. We achieved this milestone with the original launch of Molecular Universe Zero. Molecular Universe is a powerful LLM specifically trained on the world's most comprehensive battery domain expertise, combined with the world's largest and most accurate battery-relevant molecule property databases. computed through our recent advancement in GPU-accelerated large-scale computation chemistry algorithm. The second is AI Agent. We achieved this milestone with last month's introduction of Deep Space in Molecular Universe 0.5, an agentic capability that can conduct senior scientist-level battery research. Deep Space can reduce product development time from years to just tens of minutes, The ROI on this capability for battery development teams is tremendous. The third is physical AI. This is where we are right now. Physical AI is the integration of molecular universe with physical systems, including drones, humanoid robotics, EV, UAN, and the largest of all, energy storage systems, or ESS. We are on track with EVB sample development with our EV OEM customers and growing revenue from our AI-enhanced lithium ion and lithium metal cells for drones and UAM. And our recent agreement to acquire UZ Energy launches us into ESS physical AI by providing the opportunity to integrate UZ's ESS hardware with Molecular Universe Material Discovery Platform, LFP, and sodium ion for ESS. and precise battery health monitoring system. The fourth is revenue machine. The world's energy transition ultimately needs real physical products with software and hardware integrated. We expect exciting revenue growth to come from five areas of focus. These include, A, software and service. This will come from our molecular universe tool platform subscriptions and development projects from cell and materials makers. B, materials. We're producing and selling novel electrolytes and other battery materials discovered through molecular universe. C, cells. We're producing and selling AI-enhanced lithium metal and high-silicon lithium ion cells using electrolytes discovered through molecular universe for drones, UAM, and humanoid robotics. And D, EV development service. This is the original project that deployed the molecular universe with B-sample development with leading EV OEMs for lithium metal cells. E, and last but certainly not least, ESS. We will be producing and selling ESS hardware and software solutions that deploy safe and long cycle life materials and precise health monitoring from molecular universe. This is where we expect to not only grow Use the Energy's core business, but also leverage that integration with molecular universe. To implement this platform strategy, we already have the world's best material discovery team. We have been busy recruiting more top talent and looking for inorganic acquisition opportunities, such as the one with UZ Energy, that accelerate and extend this strategy. The reason that so many people are excited about our molecular universe platform and want to join us is that they see SES AI uniquely has all the ingredients required to build the best AI platform for energy transition. Some large battery companies don't dedicate enough resources to train AI models, such as cleaning and organizing data, developing large scale computation algorithms, and purchasing computing power. And other large pure AI companies simply don't have access to high quality battery data. People that join SDS AI will have unparalleled access to high quality battery data that are not available anywhere else, ranging from single molecule to formulations to cell levels, both through actual experiments and high accuracy simulation. And they'll be able to sell products that are not just safer and demonstrate better performance than their competition, but improve much faster. We will share more updates on all of this in the coming months. Now, here's Jean Niales for financial updates.