Amprius Technologies, Inc. (AMPX)
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26th Annual Needham Growth Virtual Conference

Jan 18, 2024

Operator

Welcome everyone, to Amprius Technologies Presentation today. We've got Kang Sun, the CEO here to present. Just leave five-10 minutes of questions at the end. Will you take it away?

Kang Sun
CEO, Amprius Technologies

Thank you, James. Glad to have this opportunity to introduce our business and technology. Our CFO, Sandra, joins me today for this presentation. Amprius is the company, we make high performance lithium-ion batteries. Our technology based on silicon anode technology. So, we do believe we have a breakthrough technologies that validated by breakthrough performance. Today, we are not only making silicon anode materials, we also make silicon cells. Our energy is the highest in the industry. You look at the high energy density is 500 Wh/kg, for volumetric energy density is 1,300 Wh/L. This battery also offer very high power density, so we can discharge to 10 C. Come, the...

Our battery structure enable us to have very fast charging time. We charge from 0%-80% in less than 6 minutes. Now, most importantly, the battery provide very unique safety feature. We are probably the only battery for a military application passed the specific nail penetration test. The battery can operate at a -30 °C to 55 °C . So this is a very unique performance, especially for electrical mobility. Now, in addition, the Amprius has been in this business for years, and we are not just to provide a customer with samples and prototypes. We actually have a commercial production since 2018. We have been in commercialization for several years already. So the company started this unique technology concept back to 2008.

In 2014, we finalized our silicon structure. In 2016, we built the first manufacturing tool to manufacturing this unique silicon anode. Then in 2018, we received the first customer order. The customer was Airbus. In 2021, we decided to scale up this technology. We believe we are ready for scale up. In 2022, we launched IPO New York Stock Exchange to raise capital to scale up our business. Not long ago, we made the announcement, the company achieved another milestone, 500 Wh/kg battery. This is almost twice higher than any commercial battery in the marketplace today. Okay, our next step is going to build a gigawatt-scale manufacturing facility in the state of Colorado. So why we engage with the silicon?

Okay, silicon as an element has 10 times higher energy density than graphite. So that's why silicon is attractive. That's the main reason why silicon is attractive. In addition, silicon is safe, is low cost, abundantly available, and easy to process. For all those reasons, we selected silicon to be the candidate for lithium-ion battery anode. But silicon has one problem. Silicon has a very high volume expansion coefficient. So controlled silicon expansion is a very, very important task to make silicon as a viable anode for lithium-ion battery. So today there are all kinds of shapes, forms of a silicon anode available, but Amprius deliver the highest capacity silicon anode in the industry. We truly achieved 10x higher capacity than graphite. Our this silicon anode is 3,400 milliamp hour per gram.

This is the highest in the industry. I have not seen any commercial silicon anode beyond 2000 milliamp hour per gram. So, Amprius has two silicon technology platforms. Based on those platforms, we deliver various different products for different applications. We have one platform we call SiMaxx. It's based on silicon nanowire structure. This one is 100% silicon. Even we don't want to make 100% silicon, we can't. Okay, this just born with 100% silicon, very high energy density anode material. Another one we call SiCore. Okay, SiCore actually can up to 100% active silicon in the anode. So both has a very high energy silicon concentration and deliver very high energy density. So, let me introduce our silicon nanowire, we call SiMaxx silicon anode structure first.

This is a very, very unique structure. Today, we are the only one in the industry practicing this technology. I have not seen any other commercial product, even in the laboratory. I have not seen this type of structure. This structure is very, very unique. This structure enable us not just high energy density, because 100% silicon is very high energy density, up to 500 Wh/kg. Also enable very high power and the fast charging time. So this is the technology we have been applied to commercial applications since 2018. Those are some leading batteries. You know, we have a high power design, we have a high energy design, and we have a balanced energy power design.

By the way, this is the only cell chemistry enable us to have a balanced energy and power design. Now, I have not seen any anode or, not just the anode, the cell chemistry enabled to deliver 400 Wh/kg, yeah, with a very high, with a full C capability. Yeah. So you look at this kind of performance is uniquely positioned for the electrical mobility. Everything require power and energy, this battery can deliver. Now, we design various forms batteries, okay? From the consumer electronics batteries, in the middle, there's a little one, skinny one, all the way to the electrical vehicle batteries. But as a company, currently we are focused on aviation business because our capacity, production capacity limitation.

But this cell chemistry enable us to cover entire battery space, except the wind and the solar energy storage. That's, that's not the area we are in, but we can do consumer electronics, power tools, and aviation, electric vehicles, marine vessels, military applications. So we have another platform we just introduced last week. So this technology is another high silicon content technology. Can up to 100% active silicon as well, also can be modulate, mixed with other active material. So we have been exploring, we have explored the market for several months. We got a very positive response from the market. You look at the performance, this platform, this platform also give us a long cycle ability. The long cycle life here.

We can do 350 Wh/kg , meet EV battery specification. Yeah. So we also can do 400 watt-hour per kilo, okay, that meet the aviation requirement. Now, for this, this silicon anode structure, we can make not just pouch cells, we also can deliver the cylindrical format of the batteries. So this some comparison, our cells and the commercially available graphite anode-based cells. You look at, you know, in any, every category, we exceed the graphite anode battery's performance. You know, in terms of energy density, we are much higher. In some sense, in some cases, we are twice higher. Then the volumetric energy density, charging time, we are faster. Then the power and the cycle life and the operating temperature.

So, this is a different type, okay, battery deliver different type of performance. So this here are some real application cases. Okay, you look at the... On the left hand of this slide, you can see our battery's specific energy density and the volumetric volumetric energy density compared to graphite's battery's specific and volumetric energy density. We almost double the energy density there. So in the real application, the first one is drones. Those are our customers' drones. You know, with graphite, and there is a 24 minutes flight time, with ours, 42. We actually put our battery in one of OEM's smartwatch, and their current battery is talking time, three hours and six minutes, use hours is five hours, 40 minutes. Now, we also supply this convertible wearable devices to U.S. military.

You can see, you know, before they have 8 hours operating time. Now, with ours, it's 17 hours. Then we model the Tesla Model 3. Okay, this is a couple years ago, the Model 3, you know, use the battery they have, the Tesla's battery is about 300 miles, use hours is 550 miles. So we literally deliver twice the mission time in all those categories. So these are our current, most of our, our application today focus on, in these areas, in aviation. You know, not long ago, few months ago, we have 38 customers purchasing our product. Okay, those are no longer the battery samples and prototypes. The customer place order, we deliver those product for those applications. So we have some very reputable customers in our customer portfolio.

Those are who's who in aviation industry, right? The AeroVironment, Airbus, BAE Systems, and we also support U.S. military applications. On the bottom here, called USABC, the United States Advanced Battery Consortium. Here, we are active participant in this. This is very, very important for U.S. government, for DOE, for U.S. EV industry. We are developing high energy density, low cost EV batteries for this consortium. You know, we supposed to deliver large format batteries with high performance in 2024. So manufacturing is a big part of the battery, okay? The battery cell design is important, but you have to be able to manufacture it. Today, there are many emerging battery technologies. They die at the manufacturing gate. They just cannot scale up, okay? Either the technical issues or the cost issues.

So Amprius, the beauty of this technology is we leverage the existing commercial product manufacturing process. We don't need a new factory, we don't need a new manufacturing protocol, we don't need a new manufacturing environment. So everything is off-the-shelf. For our SiMaxx, only this top one, we have a unique tool, but this tool is used in the solar industry already. For SiCore, we can use off-the-shelf equipment and off-the-shelf process. So that's why we can easily scale up our manufacturing capacity. As a matter of fact, we even can use leverage other people's manufacturing capacity to manufacture our cell chemistry here. Yeah. Very, very few emerging battery technology can do that. So, we are very ambitious. We like to build a gigawatt-scale manufacturing facility. Now, we have two business units.

We have one is called Amprius Lab, located in Fremont, California. We have a megawatt-scale manufacturing facilities there. That facility has been supplying customer product since 2018. Now we are building another factory in Colorado, we call Amprius Fab. Amprius Fab will have the space can accommodate the 10 GW manufacturing of the battery manufacturing. So we are planning to have this factory construction start this year and get finished next year. So if we look at Amprius, you know, we have an innovative silicon anode and the cell chemistry. This is the core of our business. Yeah. So we have a we are uniquely positioned for electric mobility in terms of safety, energy, power, temperature, charging time. We have a strong technology and a product roadmap. The Amprius technology performance will not stop here, okay?

We have very impressive roadmap to lead us to even better performance. Now, we have highest energy density, power density, energy batteries in the commercial space today. You want to buy 400 watt hour per kilo battery, Amprius is the only company to buy. Yeah. So, I mentioned that, you know, the safety, the fast charging, wide temperature arrangement, the production and the sales since 2018. So we are a commercial company. We are not in the tech. We, we out of the technology curiosity stage, sampling and the prototyping stage. We are truly a manufacturing business. Now, our technology validated by repeated customer orders and the leading industry partners. This is not something just the Amprius claim. Our customers' orders would be the best validation of this technology.

We have a megawatt-scale production capacity in operation, and our gigawatt production capacity under development.

Thank you. Any questions? No question. Okay, that's good. Thanks.

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