SES AI Narrows Q2 Loss Amidst Continued R&D, No Revenue Yet

TL;DR

SES AI is still burning cash with no revenue, so don't expect a profit anytime soon, but the reduced loss is a small win for this speculative battery play.

AI Summary

SES AI Corp reported no revenue for the three and six months ended June 30, 2025, consistent with the prior year periods, as the company remains in the research and development phase for its hybrid lithium-metal battery technology. The net loss for the three months ended June 30, 2025, was $36.2 million, a decrease from a net loss of $40.8 million in the same period of 2024. For the six months ended June 30, 2025, the net loss was $73.4 million, compared to $80.2 million for the six months ended June 30, 2024. This improvement in net loss is primarily due to a decrease in operating expenses and a gain on derivative liabilities. Research and development expenses decreased to $28.5 million for the three months ended June 30, 2025, from $32.1 million in the prior year, reflecting a more focused approach. The company continues to invest heavily in its battery technology, aiming for commercialization, but faces significant risks related to technological hurdles and market adoption. Strategic outlook remains focused on advancing its A-sample and B-sample development with key automotive partners.

Why It Matters

For investors, SES AI's continued lack of revenue and substantial net losses highlight its pre-commercialization stage, making it a high-risk, high-reward play dependent on future technological breakthroughs and market acceptance. Employees face job security tied directly to the company's ability to secure further funding and achieve commercial viability in a highly competitive battery market dominated by established players like CATL and LG Energy Solution. Customers, primarily automotive OEMs, are keenly watching for the successful development and scaling of SES AI's hybrid lithium-metal batteries, which promise higher energy density but carry inherent safety and manufacturing challenges. The broader market for electric vehicle batteries could see a significant disruption if SES AI's technology proves scalable and safe, potentially shifting the competitive landscape.

Risk Assessment

Risk Level: high — The risk level is high because SES AI Corp reported no revenue for the three and six months ended June 30, 2025, and incurred net losses of $36.2 million and $73.4 million, respectively. This indicates the company is entirely dependent on its cash reserves and future financing to fund operations, with no clear path to profitability in the near term, as it remains in the research and development phase.

Analyst Insight

Investors should maintain a cautious stance, recognizing SES AI as a highly speculative investment. Monitor progress on A-sample and B-sample development milestones and cash burn rates closely, as these will be critical indicators of future viability and potential for commercialization.

Financial Highlights

revenue

$0

net Income

-$36.2M

revenue Growth

0.0%

Key Numbers

• $0 — Revenue (No revenue reported for Q2 2025 or H1 2025, consistent with prior periods, indicating pre-commercialization stage.)
• $36.2M — Net Loss (Q2 2025) (Represents a decrease from $40.8 million in Q2 2024, showing a narrowing of losses.)
• $73.4M — Net Loss (H1 2025) (Represents a decrease from $80.2 million in H1 2024, indicating improved financial efficiency.)
• $28.5M — R&D Expenses (Q2 2025) (A decrease from $32.1 million in Q2 2024, reflecting focused R&D efforts.)

Key Players & Entities

• SES AI Corp (company) — filer of the 10-Q
• Ivanhoe Capital Acquisition Corp. (company) — former name of SES AI Corp
• CATL (company) — competitor in the battery market
• LG Energy Solution (company) — competitor in the battery market
• $36.2 million (dollar_amount) — net loss for Q2 2025
• $40.8 million (dollar_amount) — net loss for Q2 2024
• $73.4 million (dollar_amount) — net loss for H1 2025
• $80.2 million (dollar_amount) — net loss for H1 2024
• $28.5 million (dollar_amount) — R&D expenses for Q2 2025
• $32.1 million (dollar_amount) — R&D expenses for Q2 2024

FAQ

Risk Factors

• Technological Hurdles in Battery Development [high — operational]: SES AI Corp is in the research and development phase for its hybrid lithium-metal battery technology. The company faces significant risks related to technological hurdles in achieving commercialization, as evidenced by the continued absence of revenue and substantial net losses. Success hinges on overcoming these technical challenges to meet A-sample and B-sample development milestones with automotive partners.
• Market Adoption of New Battery Technology [high — market]: The company's future revenue generation is dependent on the successful market adoption of its novel battery technology. This includes acceptance by key automotive partners and the broader electric vehicle market. The lack of current revenue indicates that market penetration is yet to be achieved, posing a risk to future commercial success.
• Sustained Net Losses and Burn Rate [medium — financial]: SES AI Corp reported a net loss of $36.2 million for Q2 2025 and $73.4 million for H1 2025. While these losses have narrowed compared to the prior year periods ($40.8 million for Q2 2024 and $80.2 million for H1 2024), the company continues to incur significant operating expenses, primarily in R&D, which was $28.5 million in Q2 2025. This sustained high burn rate requires ongoing capital to fund operations until commercialization.
• Dependence on Key Automotive Partnerships [medium — operational]: The company's strategic outlook is focused on advancing A-sample and B-sample development with key automotive partners. This reliance on a limited number of partners for product development and future commercialization represents an operational risk. Any delays or issues with these partnerships could significantly impact the company's progress and timeline.

Industry Context

The electric vehicle battery market is highly competitive, with established players and emerging technologies vying for market share. Key trends include the drive for higher energy density, faster charging capabilities, and improved safety. Companies like SES AI Corp are focused on next-generation battery chemistries, such as solid-state and advanced lithium-metal, to differentiate themselves and capture future demand.

Regulatory Implications

While SES AI Corp's current focus is R&D, future commercialization of battery technology may involve compliance with evolving safety and environmental regulations for battery manufacturing and disposal. The company must also adhere to financial reporting regulations as a publicly traded entity.

What Investors Should Do

1. Monitor progress on A-sample and B-sample development with key automotive partners.
2. Assess the company's cash burn rate and future funding needs.
3. Evaluate the competitive landscape and market adoption potential for hybrid lithium-metal batteries.

Key Dates

• 2025-06-30: End of Second Quarter and First Half 2025 Reporting Period — The period for which SES AI Corp reported no revenue and a net loss of $36.2 million for the quarter and $73.4 million for the half, showing a decrease in losses compared to the prior year.
• 2025-08-06: 10-Q Filing Date — The date SES AI Corp filed its quarterly report, providing detailed financial and operational information for the period ending June 30, 2025.

Glossary

Hybrid Lithium-Metal Battery

An advanced battery technology that combines lithium metal anodes with other battery components, aiming for higher energy density and performance compared to conventional lithium-ion batteries. (This is the core technology SES AI Corp is developing, and its successful commercialization is critical for the company's future revenue and profitability.)

A-sample and B-sample development

Stages in the automotive product development process. A-samples are typically early prototypes for initial testing, while B-samples are more refined versions used for further validation and integration testing. (These milestones indicate the company's progress in developing its battery technology to meet automotive industry standards and partner requirements.)

Derivative Liabilities

Financial contracts whose value is derived from an underlying asset, group of assets, or benchmark. Changes in the value of these liabilities can impact net income. (A gain on derivative liabilities contributed to the improved net loss in the current period, highlighting a non-operational factor affecting financial results.)

Year-Over-Year Comparison

SES AI Corp reported no revenue for the three and six months ended June 30, 2025, consistent with the prior year. However, the net loss has narrowed, with Q2 2025 losses at $36.2 million (down from $40.8 million in Q2 2024) and H1 2025 losses at $73.4 million (down from $80.2 million in H1 2024). This improvement is attributed to decreased operating expenses, notably R&D expenses which fell to $28.5 million in Q2 2025 from $32.1 million in Q2 2024, and a gain on derivative liabilities. No new significant risks were explicitly detailed in the summary, but the inherent risks of technological development and market adoption remain.

Filing Details

This Form 10-Q (Form 10-Q) was filed with the SEC on August 6, 2025 regarding SES AI Corp (SES-WT).

View full filing on EDGAR

View Full Filing

View this 10-Q filing on SEC EDGAR