Earnings call transcript Q4 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon and welcome to the Amprius Technologies Conference Call and Webcast. It’s now my pleasure to turn the call over to Greg Bradbury.

Greg Bradbury

Good afternoon. Welcome to Amprius Technologies’ fourth quarter and full year 2022 conference call.

Joining us for today’s presentation are the company’s CEO, Dr. Sandra CFO, and Sun Wallach. Kang all At in mode. are this time, listen-only participants

open remarks, for management’s we the Following will call questions.

may customer future Please different note not achievements commercialization, ability regarding statements known but performance expressed expand and to manufacturing build manufacturing any statements, forward-looking timing factors its new that of product uncertainties large to Amprius results, and other that or performance this limited capacity materially presentation to risks, and contains adoption its and and cause facility, unknown involve or scale including results, business. or its from statements such These future implied be Amprius’ forward-looking important achievements in statements. scale

filings with Securities Commission, complete limited a filed but report Exchange more to the not of XX, including XX-Q Form a quarterly of on in and its discussion November factors Amprius’ XXXX. Amprius’ uncertainties, on risk discussion risks and For to these please refer

is this would like replay company’s I Finally, at made Investor available Relations will ir.amprius.com. on call to and for the website everyone that a recording be conference being remind webcast

In accompanies results, can the posted be company addition Relations also Investor on these found the which letter shareholder to website. the a webcast, that has

turn call now comments. Sir, to CEO, Amprius please Technologies’ Kang will I the proceed. Sun, over Dr. for his

Kang Sun

will recent for the remarks give call I After thank Sandra financial results turning for before CFO, will followed more discuss and year share complete our some the before To to some of opening accomplishments in depth. I joining over you discussion background our everyone a begin to Welcome, us this for closing the that, today’s questions. afternoon. Wallach our by call review

manufactures battery technology. our high-energy ultra silicon based Amprius anode on lithium-ion and develops proprietary density

operators years Our business business unmatched leaders, team record. and proven has a distinct and product of manufacturability, technical seasoned a advantages: with solid with performance, commercialization of industrial track product four

mainstream the becoming highest EV over has battery density all across and industries, energy manufacturing mobility, power goal segments is the solution. Our density. electrical years, long-term the of and our a applications few near-term to aviation scale with the known Amprius of batteries past with goal With the the commercial delivered including

watt-hour as available and per current density batteries with as have in specific to XXX capability. density much volumetric kilo liter X,XXX energy in per up watt-hour XXC high-power Our energy

as along minutes XX% batteries XX-degree to Celsius. charge Amprius with your the to temperature market pass XX are in there features cost wide benchmark in Celsius environments United is minus degrees the penetration operate effort extremely to Our the up These rates as States of set built with approximately as level. at for also can perform and charging that as of test else an operating low the nail well this military is versatility our X of range belief to commercial that It extreme no one apart. fast in state X% ability

and we In of over decade know-how patents a over in and addition, amassed silicon technology anode XX have manufacturing. the

past It was as make focus was highlight with year. key our of on to most of our minute on from the founding mobility Amprius for XXXX. our transform also to for our arguably Moving the year the aviation business since I XXXX some in to milestones year execute will our strategy firsts many now applications. electrical transformational review, we a the

to these XXXX improve are our product XXX a kilo that the capabilities watt-hour watt-hour We transmission technology. performance constantly We energy and market aviation. high batteries performance produce we the ago, technology. position leading As disruptive per our specifications sector first working per commercial manufacture the emerging a for segment in of few Amprius liter on and I only XXXX on the with with and has mentioned entered can minutes

making our is that had realized crucial third-party, we those which today, kilo earlier capabilities independent step the not product their to watt-hour we development the be great to Based upgrade expect market timeline. by progress. Demand batteries and XXXX. are example, battery selected per a save to before we estimates, yet verified XXX an on of this next-generation trend are for able in available customers capable of As the prototypes degree to the end

in to return through our of also charge We X% demonstrations we in of a to of charging we ability XX% extreme X video several successfully able exhibit October, important demonstration complete fast achieve capability technologies a XXXX. battery’s our where state approximately minutes. In were

X% the States vehicles this much of to performance XXXX applications battery and XX% advanced United XX consortium ahead less Our In downtime. more in to with other efficiently of charge goal minutes. practice, is the allow will operate

specific Additionally, is important we considered our performance scenarios watt-hour product applications. third-party of testing test penetration of benchmark that successful the electrolyte per military feasibility a XXX test. lab polymer and kilo in combat November, determine to States independent specification used military the nail This to in allow for cells passing validate be to is United

opportunity in We for weight performance doubling increase unique wearable batteries the of mobile-powered the nearly runtime our have overall a XXX% of without soldiers. density devices for a significant energy to the provide the increase

Aviation the and with battery. because XXXX faster defense our batteries, U.S like commitments lightweight has issue the BAE and high-energy in Army Amprius our batteries and and flight standard Airbus, important we inroads eVTOL with most are the among signed and aviation our while means performance To existing a is we why battery FLIR with Single market, produce our others. industry eVTOL USABC density, AeroVironment, turnaround such time. time the and to Moving denser development successful business weight, high-demand. sales which segments. in and Lighter leaders expand Systems multiyear the year the is efforts, that was end, increased for range, means deep Teledyne, Federal greater aviation charge new agreements

the our Also applications. vehicle October, for In will to as second develop the low entered Department that consortium and Ford, development develop highlight agreement advanced EV will with into This aircraft products. lightweight enabled Stellantis cooperation Energy. a FLIR we In Their BAE Systems flight batteries of powered cooperative July, technologies the X-year high-energy their I of cost they is agreement May, is of with commercialization the specifically battery GM multiyear for battery. and a storage States a in supply those the we batteries some between deal we States is advance United X-year to next-generation develop of development in unmanned a to applications. consortium funding program electrically United with Teledyne award now. electrified energy mission agreements electrochemical for launched system

officially in to the first that existing the and of we XXXX. efforts wins I quarter set a new Altogether, customers the expansion from of successful amount believe from leading flywheel in new the reference expansions cells We XX% our orders am announce delivered shipments. boost early and are pleased year-over-year effect, driving to fourth orders now a customers. to these positive

think to strategic put about we demand As achieve that cost primary several achieve meet and our moves to our is goals us career We sustainable expanding next the capacity years, in structure goals. ultimately focus on several made these paths XXXX our scale. for at

facility, via to strategic cash customer net in business combination million added base with that Acquisition we Through raised provide expenses our additional our a could equity the the for place and closely capital also in process, closed not the access them to of and public AeroVironment. on strategy. to which IV team up we put in to as to Kensington better to have September, million us Corp. markets. funding. we We asked Capital work of approximately committed a investor execute us with greater assess In Kensington $XX have partners recently, our alongside $XXX continued we than More allows

from U.S. of process, Department XXXX. two of cost-sharing to grants we After the October Energy a selected competitive receive were in

of for manufacturing. The DOE’s Manufacturing of grant solar our a deposition mass used we is evaluation $X Fremont shifting, basing cell for includes use first from cost-sharing silicon our million anodes. production process in process specifically Advanced presently a the Office This facility development the

of the Chain. and sharing the is The a Manufacturing $XX selected of Supply Energy grant second cost for from million DOE’s award negotiation Office demonstration

receive We batteries. expand the are set of Infrastructure companies Law for Bipartisan first the the Biden’s of among be from President awards the manufacturing domestic to funding to selected to of negotiation the

Fremont, end, our capacity recently meet for our California location. large-scale now machine our production anode Centrotherm, production in which we to doubling from lease anode expected this that October, in we installed is facility approximately first increase that XXXX. is silicon production received effectively X To the expanded our in output, in Fremont footprint To exiting to facility and megawatts greater

currently sampling in improve serve and who Our our with strategic processes which needs to and customers are new in high-volume qualification by the customers’ increasing aviation Fremont projects our planned and support will XXx, increase expansion capacity manufacturing backlog. is

me site news. month, foot as selection selection marks facility. Colorado Amprius. announced a Brighton, for in net takes of square important factory we The this the an XXX,XXX more scale our This location milestone the exciting the to Colorado gigawatt production of our for for our Earlier

provide of have terms of build-out a our create facility X over expanded existing proposal. up also Economic Development are align Commission, state Colorado gigawatt-hour, that phase Colorado, will Adams with the and XXX is initial incentive The the include to potential and the new which We of closely a of jobs. Brighton worked comprehensive the of mutually County City on to beneficial, to

capacity expansion capabilities of to a gigawatt-hour. for phases, potential subsequent has For XX the total manufacturing the up site

site with XXXX. Northwestern closer the will hosts existing electrical advantages some scale cost of our battery operational being cost is also other the which the for needed material and reduce lower we This expect will operational which of our Also, power goal in equipped gigawatt the a is over in distributors potential time-to-market body locations. a layout factory, long-term. our with over few Brighton build-out and already U.S., The to structural lithium-ion

made the operations the production transform the commitment Colorado and to Fab. be refine establish and Lab to will Amprius the will United the our our years. here the units: new coming our while batteries continue we we to To Lastly, us a transition, This Brighton mass Amprius from new scale Fremont our handle facility, Amprius cutting-edge products help made form to business we further in will products In designed decision two manufacturing and long-term of develop near-term, facility with to shape our in largest processes strategic to U.S. in our capabilities. States. production allows de-risk

located technology in Amprius on advanced development. process focus product Fremont, Lab, manufacturing battery and the the will

focus anode in lead of company’s batteries. Amprius transition, To Business this While silicon on Fab. Amprius to fabrication President. a large Fab the will interim, will role Division serve Lab currently as Amprius support take as the President Jon Bornstein scale Acting In the Unit new I of located Brighton will the COO,

final Sandra. I I have over before one to update the call turn

have we team the of the built. One which proud I am most areas is

North last the our President last the months, our leadership we Andrew In team efforts facility Huie, recently at Facilities as capacity, for will the Over to critical still. I Infrastructure, to Panasonic joined factory who execute am are production working growth that efforts us on up of development Energy and spearheading of experience our and in to development well of served regulatory place, September. facility on added positioned scale my most have believe planning, lead our we new several Director Fab, President we of Huie With with be strategy. Acting focusing America. compliance. role XX management roles over years and Amprius brings Andrew Vice our

financial Sandra will Wallach, turn over With Sandra? CFO, for our complete, the results overview full I that our the now to year. review call to

Sandra Wallach

minutes updates. Thank some like now you, Kang. few spend covering to a I would key

reminder, be in found a our letter. financials can our As detailed shareholder

we Kang success. the that commercial believe and we in we place and technology As shown have have manufacturability consistent proprietary mentioned,

commercial since We shipping XXXX. products have been

So, meet moving our commercializing, scaling is capacity not focus the today growing in is production markets. these instead to on demand but on our fast

its points in you and data position results, potential. our capacity scale growth financials, development reinforced our both company of strength to especially customer the well that capabilities Fremont when revenue We that efforts with in as and results, believe our our particularly In our the achieve scale. will investments profitability those gigawatt-hour we paired see

more new revenue including million XX of $X.X batteries X shipped We in are within eVTOL two we closed customers, new to pending. completed for customers, are quantity aviation backlog global $X.X suppliers and out with and sector. FLIR AeroVironment we the commercial revenue. with set was and for Airbus’ Also, leading Product future delivered program battery X XXXX. for Teledyne X XXXX shipments of deliveries calendar million a HAPS Within flight tests to pack sets manufacturers still over which that

under multiple cells of million timing the other of delivery Development services revenue contracts. $X.X by totaled and both driven deliverables the

also We the million. $X was sharing recognized which grant first portion million DOE cost the $X.X of revenue,

GAAP margin was profit XXX%. our negative XXXX, gross For

over products period variations and displays on of the mix margin services. period based gross Our

expense operating QX $XX.X million increased operating GAAP our company to G&A in were expenses XXXX QX and moving with Now expenses our management, for cost. to higher public due

net loss Our $XX.X of million per or GAAP $X.XX was share. XXXX loss a

million Our common of shares were XXXX outstanding with the outstanding year. stock at $XX.X for million $XX.X average December shares XX, weighted

our of $X.X XXXX XX, full was XX compensation XXXX, Share-based in primarily location. December Fremont, based As for there time were million. employees California

capacity expand scale driven by by connection plus combination customer manufacturing pipe capital from exited exercise Turning with to costs the in cash in XXXX the $XX.X drivers as million options. proceeds in in in from investment, business of expenditures, opportunities which a for our the net to key current our represents no received net $XX.X investment net facility activities as cash up, operating balance activity sheet, support activities, cash of The in million used were December accelerate our $XX.X $XX.X debt, of stock and our we provided with footprint increase and proceeds and and million issuance warrants our million qualifications of financing XX, well XXXX. and million $X.X to year the

Moving limited until new we XXXX to to X-megawatt coming expect exit be our online. outlook, manufacturing the to continue with by capacity we capacity

several which year. latter obligations have revenue expect that towards revenue, ongoing within the with weighed programs Regarding recognition performance complete expect we the to we that of services heavily development increased more part we means XXXX,

continue rate XXXX higher exiting will at company public our the expect We expenses. additional noting G&A costs that

Brighton, capital operating will other continue business strategically scaling up our new adding our expenses We to announced to we the in X-megawatt that forward we And we, be lean build critical allocating and the on to majority mass capacity to gigawatt-hour manufacturing. while expect higher in construct capital and units expenditures announced the scale of as design our Fremont, going facility. Colorado, California, out we parallel continue newly

is pattern Colorado of dependent timing outside Our of the for approval the spending on control, including factors for rezoning our several site.

as additional specific projections So information more provide we we share. will have to

we and the anode Also, from cell production access as credits to have tax that the U.S. Reduction we at expect continue Act support levels. we will Inflation strong

selection tailwinds will state that our in In scale addition, partnerships We packages believe we have is we Colorado through gigawatt to incentive massive our meet market. local received in facility, as over $XX our scale our result relating million built which and significant economics the to our enhance process. of accelerate these further

With additional our the and strength sheet believe have on both of our balance we incentives, we in loans non-dilutive and warrants through such funding our multiple to generate equity execute sources grants, as vehicles enough equity and cash will facility committed as to plan. strategic such

conclude financial will call the I to discussion that, pass Kang. and With the back

Kang Sun

points to like would a before I few Sandra. closing. key Thanks, re-emphasize

First, in technology today, that leading performance position the aviation we have unmatched market our in reflective real and applications. of world are

energy the XXX government. work watt-hour density important test kilo our successfully we charging specific passed battery and Over key demonstrated fast XXX future to enhanced performance from U.S. per the extreme with past the we have year, capability, to

scale Second, support in in based demand line with we are Fremont, chain to building out serve throughout to will California U.S. the Exiting our large-scale process resiliency. further supply the up pilot coming facility. U.S. manufacturing we our and XXXX the X-megawatt parameters tremendous and

gigawatt our Brighton, with scale Energy. program for of moving States also build first United Colorado XXX-megawatt the demonstration are facility now to and out swiftly Department prepare We in the

operating of build XXXX. chip exiting Third, which at expansion of are hundreds a to our customers we efforts, pipeline of to continuing a scale meet planned blue has megawatts

strategy of Amprius to and XXXX, we look As unchanged. rest focus at our remains the

us portfolio in that growth and positions market opportunity ahead post to industries, to performance with tremendous have it expand aviation with stronger the time. batteries charge other taking and faster product We the

to leading technological sector. We sustainable Through advancement to build strategic and the the sector, and on now building continuing are the become in our capital have capacity we mobility public through a lead early provider partnerships. are and commercial private the

continued operator back team it execute turn place we the Amprius have you With I the mission. will to Thank Technologies. to that, Finally, support for our Q&A. in for of your

Operator

you. is [Operator first from Rusch today Colin Oppenheimer. from question Our Thank coming Instructions]

Your line live. is now

Colin Rusch

guys the tools see much Show. week this to you either Really tools the that in progress. point? you talk and and evaluating negative glad as with that so you Thanks started the megawatt award guys can surprises installation you all seeing the this Battery congratulations at Kang, any from get are on installing positive or are them, about that

Kang Sun

this powered we work We supplier source adjusted. deposition two we to At point, to thing the with this also already we to try – source, in Fremont, need get don’t the tool. Centrotherm because tune the the this

expect in We particular will early be in – be this will this summer sometime fully operation. fall, later – fully growth will summer [indiscernible] tool tool

Colin Rusch

the has because And can in tremendous. of gaining chain by about to guys more you some obviously, you little that’s there advantages the well seems some supply of Okay, as terms location as But choosing Colorado this in selection terms then that site potentially location? be of opportunities, are building talk hiring bit advantages. efficiencies a

Kang Sun

Yes, course Montana, the the the other most our obvious in we see Texas, state, compared now that close selling manufactured today one in Selling where of of is to Georgia, state Colorado. looked we source. Colorado is to

Now, the most this is visible chain probably supply advantage.

power thing disruptions. I manufacturer, that Colorado’s weather, to it’s the the is mostly to they Colorado, afford the cannot In think very for that we the important a have power addition as us, battery drier, most important for is us, sufficient have

guarantee power supply, current adequate of X. Phase our the power So that the supply for they already almost

Colin Rusch

to you a validation new orders about the so really what super are can in product. the guys party, one just demonstrate? helpful. on or customers then some the that now on And performance, on able And for? your start And that’s final see guess, talk with looking validation that just I Okay, before with third issue terms to introduction you of for you given a you’ve been capacity product, is the it right incremental a

Kang Sun

of have a with issue of lot lot a customers We inquiries. capacity

players, extension the the We government, priority. challenge enough That’s That’s our from don’t even demand. their have from for a one satisfy inquiries capacity industrial but why us. we to have is capacity

currently The demand of we the on customer, second segment. are aviation course, from focusing

already are XXX needed batteries. generation battery the really segment, when for today, [indiscernible]. to far the energy, high the announced per can Airbus provide we so aviation a And kilo. has we only So That’s make high the one power product watt-hour Xnd

same So the other we some today, challenge. power, company seen okay. have [indiscernible] demand, probably the power have we deliver. the have power. At and okay, high can capacity time, only energy can get – we Amprius I high not customer energy energy the and battery

Colin Rusch

so thanks guys. Okay, much,

Operator

Thank coming from Our [Operator [indiscernible] B. from question next is you. Chris Instructions] Riley.

Your now is line live.

Unidentified Analyst

timing, Colorado Hey, capital and we here. the be plans Colorado? overall whenever, just get out questions that you for assuming next expected facility, rezoning needs think the then year. weeks, next Any should my about appear process? how guys. the over that going through of end to on the months you’re the pretty update the in about that solidified touch called there Thanks process you taking anything given clarity care there on couple through in Maybe of the And letter you

Kang Sun

Yes, okay.

are the with And on authorities. more question, timing then Sandra we issue, can elaborate So, currently so then financing? regulatory the the you working and timing

discussion the project. can I delivered think never source of time. I production line up. went be well. our currently the believe we And time-consuming on have most line of and this this production Construction part land is the

and XX late We about then to production fall. building construction It get line have suite this start months thought. to have us our are planning summer took retrofit early

Unidentified Analyst

then through And end Got on of the update any capital the year. next expectations it.

probably of think given site I a point costs selection – all Given pretty got your idea good this expected we’ve and at that? the

Sandra Wallach

Yes, so great question. that’s a

and gigawatt. $XXX million without $XXX grant equipment the $XXX million so, offsets. the and government somewhere production million estimating million. our total cost in That’s are total million XXX to another still NTIs, And So possibly in between on $XXX we’re per capital construction needs

Unidentified Analyst

it. Got

it Okay, then talk sector some to you could that’s to from new cases continuing non-aerospace then within on defense customers little kind kind segments helpful. testing, add curious around broader the just maybe type and use guys and more breakdown you demand out side, there, any seems And dies seeing a us of some you about that like the of USABC, other talk really demand about aerospace, are maybe give within of if are there of you’re aside in could customers the either customer types there? or bit

Kang Sun

course, of our we battery electrical At battery production been customer format, non-aviation with primarily the larger space, aviation the it’s we of time. working have a with years we are have battery in So customers. customers engaging few same most – line because and last time, don’t vehicle

can only evaluation this call we technical So the I at stage phase. phase exchange see would

grant, stage interaction twice asked until still I As mean, OEMs the USABC cells, time OEM, have at vehicle, – a format, us at XXX technical technically the extended or but exchange electrical cost this high this we EV we also a will amp-hour [indiscernible] low amp-hour, to we density XXX with a energy larger stage. stay the proceed format EV have other at

Unidentified Analyst

Yes, sense. that makes

segment customers helpful aerospace or any the there? kind within use just any of ways out of – you can types maybe would the be So other cases

Kang Sun

Right.

we format For in battery. segment. of lighter industrial us capacity the Those right see adequate and Defense have in size have customers, need applications. of for just you the have We the are other customers today, the a battery batteries we to

I applications, effort XX [indiscernible] there. to months, will those For get our we is think XX this

much better challenge we issue the mentioned, Once we and get will generation in mentioning repeatedly in Our fluctuation revenue customers. capacity. – the our is capacity serve we ease resolved, have of as

Unidentified Analyst

I hop Thanks, queue. into guys. sense. will Makes

Operator

I’d have floor or to question-and-answer the for further to any Thank back Instructions] of Dr. We you. Sun end like over comments. the [Operator session closing reached turn the

Kang Sun

to thank support. shareholders Thanks again our everyone like employees, I’d continued for and today. for us their joining partners

company more be updating Relations As will Operator? the to Investor We of our look presenting we updates forward a in progress you call. about you our call Amprius and our learn website. on on section the next reminder, may

Operator

does That webcast. you. Thank conclude today’s and teleconference

time your a and may wonderful your today. participation have at for this You thank We day. disconnect you lines

Amprius (AMPX) 23 Mar 232022 Q4 Earnings call transcript