FREMONT, Calif. - Amprius Technologies, Inc. (NYSE: AMPX), known for its Silicon Anode Platform, announced its intent to partner with a Fortune Global 500 technology company to supply high-energy SiCore™ cylindrical cells for Light Electric Vehicles (LEVs). The non-binding Letter of Intent (LOI) outlines a potential five-year supply agreement, signaling a significant move for Amprius in the LEV industry.
Under the LOI, Amprius will develop cylindrical cells that promise a 25% improvement in capacity over current industry standards. This development is expected to enhance the range of LEVs, a market projected to reach $205.7 billion by 2032, growing at a compound annual growth rate (CAGR) of 9.74% from 2023, according to a Providence Research Report.
Amprius CEO, Dr. Kang Sun, highlighted the company’s advancements in the electric mobility sector and expressed enthusiasm for the potential collaboration with a major player in the LEV space. The proposed partnership could result in orders exceeding 2 GWh of battery production for Amprius over the contract period.
The company has prepared for the anticipated demand by securing over 125 million units of annual production capacity for its SiCore cylindrical cells through contract manufacturing partnerships. Additional capacity is slated to become available in 2025.
Amprius Technologies, headquartered in Fremont, California, is acclaimed for producing some of the highest energy density lithium-ion batteries in the industry. Its SiMaxx™ batteries have been validated by third parties to deliver up to 450 Wh/kg and 1,150 Wh/L, with future projections reaching 500Wh/kg and 1,300 Wh/L. The company's expansion into the SiCore™ platform in 2024 has enhanced its offering for diverse customer applications.
The first shipment of SiCore cylindrical cells designed for the LEV application is scheduled to be delivered to the customer within this year. This move is part of Amprius's broader strategy to capitalize on the growing demand for high-performance batteries in the micro-mobility sector.
This announcement is based on a press release statement and includes forward-looking statements regarding Amprius's potential business and product deliveries under the LOI. Actual results and the commencement of shipping could differ due to various factors.
In other recent news, Amprius Technologies reported substantial growth in its second-quarter revenue, with a 105% year-over-year increase to $3.3 million, indicating strong market demand for its products. Despite this revenue growth, the company faced a net loss of $12.5 million and a negative gross margin, primarily due to preconstruction costs for a new Colorado facility and increased operating expenses. Changes have also occurred in the company's board of directors, with Mary Gustanski resigning and Livingston "Tony" Satterthwaite filling the vacancy as a Class II director.
Amprius Technologies has also been the subject of analyst attention, with financial services firm Oppenheimer adjusting its price target for the company from $15.00 to $14.00, while maintaining an Outperform rating. This adjustment reflects Amprius's strategic shift as it continues to build a solid customer base.
These are recent developments that highlight Amprius Technologies' ongoing business activities and financial performance. As the company continues to navigate the market, these events provide insight into its current operations and future plans.
InvestingPro Insights
As Amprius Technologies, Inc. (NYSE: AMPX) gears up for a potential partnership that could significantly enhance its presence in the Light Electric Vehicles (LEVs) market, a look at some key metrics from InvestingPro offers insights into the company's financial health and market performance. With a market capitalization of $109.51 million, Amprius is navigating a challenging financial landscape with a negative P/E ratio of -2.56, reflecting the market's expectations of future earnings.
InvestingPro Tips indicate that analysts have revised their earnings downwards for the upcoming period, which could be a concern for potential investors. Furthermore, the company's stock has taken a notable hit over the last six months, with a price total return of -66.34%. This downward trend is echoed in the 52-week performance, with the stock trading near its 52-week low at 16.38% of the high.
Despite these challenges, Amprius holds more cash than debt, providing a degree of financial flexibility. This is complemented by the fact that its liquid assets exceed short-term obligations, which could be crucial as the company invests in the development of its SiCore™ cylindrical cells. Additionally, the company's revenue has seen a substantial growth of 216.99% over the last twelve months, suggesting that its core business operations are expanding rapidly.
Investors interested in Amprius Technologies can find a wealth of additional insights and tips on InvestingPro, with 17 more InvestingPro Tips available to help make informed decisions. The comprehensive analysis includes a variety of metrics and forward-looking statements that could be pivotal for understanding Amprius's potential in the burgeoning LEV market.
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