Breaking News: Amprius Technologies (NYSE: AMPX) to Partner with Fortune Global 500 Company for High-Energy SiCore™ Cylindrical Cells Supply Agreement for Light Electric Vehicles (LEVs)
In a groundbreaking move, Amprius Technologies, known for its Silicon Anode Platform, has announced its intention 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 development in the LEV industry.
This partnership could lead to a 25% improvement in capacity over current industry standards, enhancing the range of LEVs. With the LEV 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, this collaboration could have far-reaching implications.
Amprius CEO, Dr. Kang Sun, expressed excitement about the potential collaboration and highlighted the company's advancements in the electric mobility sector. The proposed partnership could result in orders exceeding 2 GWh of battery production for Amprius over the contract period.
With over 125 million units of annual production capacity secured for its SiCore cylindrical cells through contract manufacturing partnerships, Amprius is well-prepared to meet the anticipated demand. The company's expansion into the SiCore™ platform in 2024 has further bolstered its offering for diverse customer applications.
The first shipment of SiCore cylindrical cells designed for the LEV application is set to be delivered within this year, marking a strategic move by Amprius to capitalize on the growing demand for high-performance batteries in the micro-mobility sector.
While Amprius Technologies reported substantial growth in second-quarter revenue, with a 105% year-over-year increase to $3.3 million, the company faced a net loss of $12.5 million and negative gross margin due to preconstruction costs and increased operating expenses. Analyst attention has also been drawn to the company, with Oppenheimer adjusting its price target for Amprius from $15.00 to $14.00, reflecting strategic shifts in the company's direction.
InvestingPro Insights: Amprius Technologies, Inc. (NYSE: AMPX) offers a glimpse into its financial health and market performance. While facing challenges, the company's revenue growth and potential in the LEV market hint at a promising future. Investors can find more insights on InvestingPro to make informed decisions.
In conclusion, Amprius Technologies' partnership and advancements in the LEV industry could pave the way for significant growth and market impact. Investors should closely monitor the company's progress and strategic moves to capitalize on potential opportunities in the evolving electric mobility sector.
