SES AI Signs Term Sheet to Establish Joint Venture to Commercially Supply Materials Discovered by Molecular Universe

SES AI Signs Term Sheet to Establish Joint Venture to Commercially Supply Materials Discovered by Molecular Universe

New milestone reached for commercial validation of material discoveries made by Molecular Universe covering energy storage (ESS), data center, drones, robotics, EV, and eVTOL applications

WOBURN, Mass.–(BUSINESS WIRE)–SES AI Corporation (“SES AI”, the “Company,” “we” or “us”) (NYSE: SES), a global leader in the development and manufacturing of AI-enhanced high-performance Li-Metal and Li-ion batteries, today announced that it has signed a term sheet to establish a joint venture with Hisun New Energy Materials Ltd. Co. (“Hisun”), a Texas-based electrolyte contract manufacturer, to commercially supply electrolyte materials discovered by SES AI’s Molecular Universe. The joint venture, which will be 90% owned by SES AI, is subject to the execution of a binding definitive agreement, which is expected to be executed by the end of this month.

Using the Molecular Universe as a building block, we expect this JV to create a new source of recurring revenue and keep us capex-light by leveraging Hisun’s existing manufacturing capacity to accelerate commercial supply of these AI discoveries.

In just six months after the original launch of Molecular Universe, SES AI and its enterprise customers have used Molecular Universe to discover several novel electrolyte materials including:

• Low-to-medium content silicon anode Li-ion electrolyte for EV applications,
• High content silicon anode Li-ion electrolyte for drones and robotics applications,
• Li-Metal electrolyte for drones and eVTOL applications, and
• Lithium iron phosphate (LFP) Li-ion electrolyte for ESS applications.

The proposed joint venture marks a major milestone in the validation of these newly discovered electrolytes, as the JV intends to produce and supply them on a commercial scale. In addition to the Molecular Universe’s existing SaaS model that includes software subscriptions and development services, the JV is expected to represent a new recurring revenue source for the Company by supplying discovered materials to customers globally.

Qichao Hu, Founder and CEO of SES AI, said:

We have already demonstrated how quickly Molecular Universe can accelerate material discovery for battery makers.

“As announced with our latest version, MU-1, our plan is to use the Molecular Universe as a building block to grow our electrolyte materials and our battery cell supply strategies. We expect this JV to provide us with a new source of recurring revenue and allow us to maintain a capex-light approach by leveraging Hisun’s existing manufacturing capacity to accelerate commercial supply of these AI discoveries,”

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SES AI Signs Term Sheet to Establish Joint Venture to Commercially Supply Materials Discovered by Molecular Universe, source