SES AI Corp

What they do

SES develops and manufactures high-performance, AI-enhanced lithium-metal and lithium-ion rechargeable batteries for EVs, Urban Air Mobility, drones, robotics, and energy storage systems. It uses superintelligent AI across R&D, materials sourcing, cell design, engineering, manufacturing, and battery health monitoring. Its AI4Materials platform, Molecular Universe, is offered as a software product and integrated into hardware. The company also sells NDAA-compliant cells produced at its Korea plant and low-voltage residential batteries via its UZ Energy subsidiary.

Revenue drivers

• Energy Storage Systems (ESS) — Largest revenue-generating unit; UZ Energy's low-voltage residential batteries were certified by Sol-Ark for closed-loop compatibility with its hybrid inverters, and a $20M, three-year distribution agreement with ATG Epower (now US Energy Distributors) provides access to residential, commercial, and industrial customers.
• Drones & Unmanned Systems — Sells NDAA-compliant pouch cells for drones and unmanned applications; Korea plant scaling from 200,000 to 1 million cells per year, with revenue expected to begin meaningfully contributing in Q4 2026; also signed a framework agreement with Doroni for complete battery design and development.
• Molecular Universe (AI4Materials) — Commercial software platform for AI-driven material discovery; shipped first 'Search-in-a-Box' order to one of the world's largest battery manufacturers; materials discovered by the platform have completed testing and entered pilot commercial deployment.

Recent performance

Q2 2026 revenue was $5.1 million, down from $6.7 million in Q1 2026 but up more than 40% year-over-year; gross margin improved to over 22% from 18% in Q2 2025. The company reported a net loss of $17.9 million for Q2 2026, an improvement from a $22.7 million loss in Q2 2025. For fiscal 2025, revenue was $21.0 million with a net loss of $73.0 million. Cash and equivalents stood at $64.1 million as of June 30, 2026.

Strategy

SES is pivoting from in-house manufacturing to a consolidated variable interest entity with Hisun to produce materials at commercial scale, reducing capital intensity and accelerating time-to-market. Management is prioritizing ESS growth in the US market, building a team for defense and commercial drones, and commercializing Molecular Universe to drive recurring software revenue. The company is also expanding NDAA-compliant production capacity for both pouch and cylindrical cells.

Risks

• Ongoing net losses and cash burn — Accumulated deficit reached $401.9 million through June 30, 2026, with substantial operating expenses expected to continue for several years without sufficient revenue.
• Litigation risk — A putative class action lawsuit filed in April 2026 alleges false statements about business prospects; an unfavorable outcome could be materially adverse.
• Commercial adoption uncertainty — The market for AI-based scientific discovery tools is nascent and rapidly evolving, with uncertain adoption pace and competitive dynamics that could hurt revenue growth.
• Manufacturing transition risk — Shift to third-party manufacturing via Hisun introduces production delays, quality control challenges, and supply chain disruptions that could affect cash flows.

Outlook

Management reaffirmed 2026 revenue guidance of $30 million to $35 million. Korea plant is expected to reach full capacity of 1 million NDAA-compliant cells per year starting in Q4 2026, with meaningful revenue contribution from those cells in Q4 and accelerating in H1 2027. Management expects to secure orders well into 2028 based on customer demand.