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FREMONT, Calif. - Amprius Technologies, Inc. (NYSE: AMPX), known for its Silicon Anode Platform lithium-ion batteries, has secured contracts totaling over $20 million to supply 40 Ah high-performance cells for Light Electric Vehicle (LEV) applications. The company announced today that these contracts will result in the delivery of large quantities of cells, with shipping expected to commence in 2024 and revenue recognition to be completed by mid-2025.
The selection of Amprius's 40 Ah cells by customers was based on their higher energy density, safety features, and competitive costs, affirming the company's role in the LEV sector. Dr. Kang Sun, CEO of Amprius Technologies, noted the contracts as evidence of the company's ability to expedite the commercial validation process and meet the growing demand for their high-performance silicon anode batteries.
Earlier in September, Amprius signed a Letter of Intent (LOI) with a Fortune Global 500 company leader in the LEV space, further positioning itself within the expanding electric mobility market. This follows a recent announcement of a potential 2 GWh LOI with another Fortune 500 company, showcasing strong customer commitment to Amprius's technology.
Amprius has also expanded its manufacturing capabilities, announcing in June the collaboration with several contract manufacturers in Asia, which allows the company to scale up production without significant capital expenditures. Over 130 customers, including 100 new ones, have received shipments from Amprius in the first half of 2024. Additionally, the company is enhancing its Fremont facility to 2 MWh and finalizing plans for a gigawatt-hour scale factory in Brighton, Colorado.
The LEV market is anticipated to grow substantially, with a projected value of $205.7 billion by 2032 and a compound annual growth rate (CAGR) of 9.74% from 2023, as per a Providence Research Report. This growth underscores the increasing need for high-performance batteries in the micro-mobility sector.
Amprius Technologies, based in Fremont, California, produces lithium-ion batteries with the highest-known energy density in the industry. The company's SiMaxx™ batteries deliver up to 450 Wh/kg and 1,150 Wh/L, with third-party validation reaching 500Wh/kg and 1,300 Wh/L. Amprius is also expanding its product offerings with the introduction of the SiCore™ platform in 2024.
This article is based on a press release statement from Amprius Technologies, Inc.
In other recent news, Amprius Technologies reported a notable 105% year-over-year increase in its second-quarter revenue, reaching $3.3 million. However, the company also disclosed 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. Alongside these financial updates, Amprius has seen changes in its board of directors, with the resignation of Justin Mirro and Mary Gustanski, and the appointment of Livingston "Tony" Satterthwaite as a Class II director.
In the realm of analyst ratings, financial services firm Oppenheimer has adjusted its price target for Amprius from $15.00 to $14.00, while maintaining an Outperform rating. Amprius has also unveiled plans to partner with a Fortune Global 500 technology company to supply high-energy SiCore™ cylindrical cells for Light Electric Vehicles (LEVs), a move that could result in orders exceeding 2 GWh of battery production for Amprius over the contract period.
Furthermore, Amprius has received a notice from the New York Stock Exchange (NYSE) regarding non-compliance with the exchange's listing standards due to the average stock price falling below the minimum required average closing price of $1.00 over a consecutive 30 trading-day period. However, Amprius has expressed its intent to rectify the deficiency within the given six-month period. These are the recent developments for Amprius Technologies.
InvestingPro Insights
As Amprius Technologies, Inc. (NYSE: AMPX) continues to secure substantial contracts and expand its manufacturing capabilities, investors and industry observers are keeping a close eye on the company's financial health and market performance. According to InvestingPro data, Amprius has a market capitalization of approximately $98.72 million, reflecting the market's current valuation of the company.
InvestingPro Tips highlight that Amprius holds more cash than debt on its balance sheet, which can be a positive sign of financial stability. This is particularly relevant as the company ramps up production and invests in new technology. Moreover, analysts anticipate sales growth in the current year, which could be a reflection of the recent contracts and the company's expansion in the LEV market.
However, it's important to note that Amprius is trading at a negative P/E ratio of -2.56, indicating that the company is not currently profitable. The company's revenue growth over the last twelve months has been impressive at 216.99%, yet it is quickly burning through cash, and analysts have revised their earnings downwards for the upcoming period. This suggests that while Amprius is growing its top line, it is facing challenges in translating this growth into net income.
Investors interested in a more in-depth analysis can find additional InvestingPro Tips for Amprius on the InvestingPro platform, which provides comprehensive financial data and expert insights to help make informed investment decisions.
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