SES AI Corporation

Hello and welcome to the SES AI third quarter 2025 earnings release and call. My name is Carla and I will be coordinating your call today. During the presentation, you can register to ask questions by pressing star followed by one on your telephone keypad. If you change your mind, please press star followed by two. I will now hand you over to the Chief Legal Officer, Carl Pickenton. To begin, please go ahead when you're ready.

Hello, everyone. and welcome to our conference call covering our third 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 just after 4 p.m. today, 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 our latest earnings release and in our SEC filings. This afternoon, we will review our business as well as results for the quarter. With that, I'll pass it over to Chi-Chao.

Thanks, Kyle. Thanks, everyone, for joining today. We had a record third quarter with more than $7 million in revenue. That's more than 100% growth over the second quarter. Our all-in on AI strategy is working remarkably. Today, I want to highlight some of the successes we've seen with this strategy and what it means for the future. We reached a major milestone this quarter that we expect to have far-reaching consequences across the revenue machine we described in detail during our last call. That milestone was the release of our latest version of molecular universe. MU 1.0. MU 1.0 is a powerful and complete end-to-end AI for science workflow that includes five features. ASK, an agentic LLM with access to what we believe is the world's largest database of battery-relevant literature. SEARCH and FORMULA, what we believe are the world's largest databases of battery-relevant molecule and formulation level properties. enabled by GPU-accelerated quantum mechanics computation and machine learning-accelerated property prediction, and design and predict chemistry-specific and chemistry-agnostic machine learning models, respectively, that can accurately predict battery state of health and end of life. Due to the popularity of the Enterprise tier, we also launched three sub-tiers within Enterprise to provide greater value to more Enterprise users. In addition to cloud-based Molecular Universe, we expect to launch on-premise Molecular Universe, providing greater data security to more enterprise users. This new on-premise capability, which we will be describing in more detail in the coming months, addresses specific security and privacy needs of the world's largest battery makers that should unlock a greater share of our addressable market. We are incorporating MU 1.0's ask, design, and predict into our ESS products deployed by UZ around the world to collect data for onsite model training. This unprecedented ability for safety and health prediction combined with reduced maintenance costs truly helps differentiate our products and attract new customers. Since we completed the acquisition of UZ Energy in mid-September, our ESS revenue has been growing and is already responsible for approximately 45% of our third quarter revenue. We're very excited about the revenue potential of deploying molecular universe to enhance our ESS products. MU 1.0 asks, Search and formulae are also helping our users identify several new electrolyte materials that we are commercializing. These include, one, improved low temperature rate performance of lithium iron phosphate, lithium ion cells for ESS applications. Two, improved cycle life for 12% silicon lithium ion cells for EV application. And three, improved cycle life for lithium metal and 100% silicon lithium ion for drones and UAM applications, and many more. To supply these materials discovered by Molecular Universe to our customers, we entered into a joint venture agreement with Heisen New Energy Materials, a leading electrolyte manufacturer with 150,000 tons of annual capacity to contract manufacture these materials so we stay CapEx light. They use the groundwork for exciting revenue growth in the coming quarters. Another revenue opportunity we expect to grow in 2026 and beyond is in drones. A dependable supply chain of high energy density power cells is extremely rare and critical to the development of the American drones industry. To better address this burgeoning market, we are leveraging our Chungju South Korea cell factory, incorporating the latest materials discovered from the lecture universe to meet customer demands. In terms of potential revenues from EV, we completed B-sample line site acceptance tests this summer with one auto OEM. As a result, in 2026, we expect to start commercial supply of electrical materials and partner with them for cell production. Overall, it's hard for us to comprehend a more consequential period than what we have experienced over the past two quarters, particularly as it relates to delivering on the goals we outlined coming into this year. For instance, we know that we wanted to break into the ESS market in a big way. Now we've done so with the acquisition of UZ Energy, and the acquisition has already delivered significant revenue in 2025. We launched three versions of Molecular Universe this year. The discoveries made by us and our customers so far have accelerated our push into materials to supply them through the Heisen JB. We'll have more to share on our fourth quarter call about how we expect 2026 to shape up for us. But we expect success for us will look like a hardware software integrated platform with multi-prone and multi-revenue streams. As Molecular Universe, a complete AI for Science workflow SAS platform accelerates innovation across all battery chemistries. We are working with our JV partners to provide a dependable hardware supply chain for the cells developed from Molecular Universe. Just as AI for Science is completely changing other industries, Molecular Universe is now transforming all battery chemistries across all applications. We are excited about the revenue growth potential brought by Molecular Universe and will continue to assemble the best talent, data, and compute resource needed to build AI for Science for energy transition. Lastly, I want to express my gratitude for our teams who are working super hard to make all of this happen. And thanks to all of you for being on this journey with us. And now, here's Jin for financial updates.