10-Q: Amprius Technologies Soars on SiCore Sales, Narrows Loss

Amprius Technologies reported a significant surge in revenue and a substantial reduction in net loss for the second quarter and first half of 2025, driven by strong SiCore battery sales and new customer acquisition.

Summary

• Revenue for the three months ended June 30, 2025, increased by 350% to $15.067 million, up from $3.345 million in the same period last year.
• Revenue for the six months ended June 30, 2025, increased by 364% to $26.351 million, up from $5.681 million in the same period last year.
• Net loss for the three months ended June 30, 2025, decreased by 49% to $(6.370) million, compared to $(12.517) million in the prior year period.
• Net loss for the six months ended June 30, 2025, decreased by 30% to $(15.741) million, compared to $(22.403) million in the prior year period.
• Achieved a gross profit of $1.340 million for the three months ended June 30, 2025, a significant improvement from a gross loss of $(6.531) million in the comparable prior year period.
• Gross loss for the six months ended June 30, 2025, was reduced to $(1.021) million from $(10.976) million in the prior year period.
• Cash and cash equivalents stood at $54.189 million as of June 30, 2025.
• The accumulated deficit was $190.1 million as of June 30, 2025.
• Sold 5.8 million shares of common stock under the At Market Issuance Sales Agreement, generating approximately $18.7 million in gross proceeds during the six months ended June 30, 2025.
• Approximately $46.7 million remains available under the At Market Issuance Sales Agreement as of June 30, 2025.
• Expanded production at the Fremont, California facility, leading to deliveries of SiCore battery cells to multiple advanced drone and unmanned aerial vehicle (UAV) customers.
• Awarded a $10.5 million contract from the U.S. Government Defense Innovation Unit to support manufacturing expansion in Fremont.
• Total customer engagements grew to over 360, with shipments to 93 customers, including 43 new customers, during the three months ended June 30, 2025.

Sentiment

Score: 7

Explanation: The company demonstrates strong operational momentum with significant revenue growth and a substantial reduction in net losses, indicating increasing market acceptance and improved efficiency. Key strategic advancements like the Fremont expansion and new government contracts are positive. However, continued unprofitability, reliance on external capital for future large-scale expansion, and uncertainty regarding the Brighton facility temper the overall positive sentiment.

Positives

• Revenue increased by 350% in Q2 2025 and 364% in H1 2025, primarily driven by strong sales of SiCore batteries.
• Net loss significantly decreased by 49% in Q2 2025 and 30% in H1 2025, indicating improved operational efficiency.
• Achieved a gross profit of $1.340 million in Q2 2025, a substantial turnaround from a gross loss in the prior year, reflecting better cost management and higher sales volume.
• Strong customer acquisition with 43 new customers and shipments to 93 total customers in Q2 2025, demonstrating growing market acceptance.
• Expanded manufacturing capabilities at the Fremont facility, enabling direct deliveries of SiCore battery cells to customers.
• Secured a $10.5 million contract from the U.S. Government Defense Innovation Unit, providing significant funding for manufacturing expansion.
• Entered into a contract manufacturing agreement with a leading South Korean battery manufacturer, enhancing the ability to deliver high-performance SiCore cells at scale.
• Appointment of Tom Stepien as President is expected to drive commercial growth and market expansion, leveraging his extensive industry experience.

Negatives

• Continued to incur net losses, with an accumulated deficit reaching $190.1 million as of June 30, 2025.
• Still reported a gross loss of $(1.021) million for the six months ended June 30, 2025, despite significant improvement.
• Cash and cash equivalents slightly decreased from $55.155 million at December 31, 2024, to $54.189 million at June 30, 2025.
• Future profitability is dependent on obtaining adequate financing and successfully scaling production, which presents ongoing challenges.
• The scope and schedule for the GWh-scale manufacturing facility in Brighton, Colorado, are uncertain and dependent on funding, with the company exploring potential sublease options.
• Reliance on third-party manufacturers (Berzelius, China, South Korea) for SiCore batteries introduces risks related to pricing, supply chain disruptions, quality control, and intellectual property.
• Operates in a highly competitive market with established companies and new entrants that often possess greater resources.

Risks

• Batteries may fail to perform as expected, leading to recalls, design changes, and adverse effects on sales and brand.
• Reliance on third parties for manufacturing (Berzelius, global contract manufacturers) poses risks of price increases, inability to establish commercial terms, production delays, quality control issues, and loss of intellectual property control.
• Challenges in developing new high-volume manufacturing lines, including reliability, maintenance, and capital intensity.
• Failure to meet manufacturing cost targets could limit market opportunities.
• Reliance on complex equipment for operations carries risks of malfunctions, production interruptions, and increased costs.
• Establishment of a volume manufacturing facility (Brighton, CO) is subject to construction, permitting, delays, cost overruns, supply chain constraints, and operating in a new geographic area.
• Inability to retain and attract key employees, particularly technical talent.
• Risk of expending limited resources on less profitable products.
• Delays and technical obstacles in developing new battery products and cell formats.
• Hazardous components in batteries pose safety risks (e.g., fire, thermal runaway), leading to potential accidents, product recalls, and product liability claims.
• Inability to accurately estimate future supply and demand for batteries, leading to inefficiencies, additional costs, or delays.
• Difficulty in establishing supply relationships for necessary materials or components, or paying higher than anticipated prices.
• Intense competition in the battery market from companies with significantly greater resources.
• Future sales depend on the growth of battery-powered applications, which may develop slower than expected.
• Developments in alternative technologies (e.g., fuel cells) could adversely affect demand.
• Unsuccessful development agreements and strategic alliances could negatively impact the business.
• Customers reducing or not purchasing batteries manufactured outside the U.S. could decline revenue.
• Need for additional capital to support business growth, which may not be available on commercially reasonable terms or at all.
• History of financial losses and expectation of continuing significant expenses and losses.
• Obligation to develop and maintain proper and effective internal control over financial reporting, with past material weaknesses identified.
• Failure to receive and maintain government contracts or changes in public sector policies.
• Inability to protect intellectual property rights.
• Need to defend against intellectual property infringement claims.
• Exposure to litigation, environmental, and other legal compliance risks.
• Subject to anti-corruption, anti-bribery, and anti-money laundering laws.
• Governmental export and import controls could impair international competition or lead to liability.
• U.S. foreign investment regulations (CFIUS) may limit certain investors or impose conditions.
• Recent and potential tariffs (e.g., on Chinese imports, UFLPA) could increase product costs or restrict supply.
• Reliance on foreign suppliers (China, South Korea) subjects the company to foreign laws, regulations, and geopolitical risks.
• Inability to comply with NYSE continued listing standards (previously non-compliant, but regained).
• Sales of substantial amounts of common stock in the public markets, or the perception that such sales could occur, could cause the market price of common stock to drop significantly.
• Warrants may expire worthless due to exercise price being above market price.
• Company may redeem unexpired public warrants prior to their exercise at a time that is disadvantageous to the warrant holders.
• Warrant terms may be amended adversely to holders with the approval by the holders of at least 50% of the then outstanding warrants.
• Exercise of warrants would increase the number of shares eligible for future resale in the public market and result in dilution to stockholders.
• Issuance of additional shares of common stock under an employee incentive plan or preferred stock could dilute the interest of stockholders and present other risks.

Future Outlook

The company expects to incur additional losses in the future as it scales its business and increases operating expenditures, particularly in research and development. It plans to continue investing in expanding manufacturing capabilities and capacity at its Fremont, California facility, including electrode manufacturing, with support from a $10.5 million U.S. government contract. The scope and schedule for the planned GWh-scale manufacturing facility in Brighton, Colorado, will be determined based on funding availability and industry dynamics, with the company exploring potential sublease options for the facility. Research and development efforts will focus on improving battery life, further enhancing energy density, and developing larger cell form factors to meet evolving market requirements.

Management Comments

• Our disruptive silicon anode technology is intended to enable batteries with higher energy density, higher power density and fast charging capabilities over a wide range of operating temperatures and safety.
• We believe our proprietary technology has the potential for broad application in electric transportation.
• Our total customer engagements since inception grew to over 360 with shipments to 93 customers during the three months ended June 30, 2025, with 43 new customers.
• As of June 30, 2025, we had access, through Berzelius and our manufacturing supply agreements with our global contract manufacturers, to annual production of up to 1.8 GWh of SiCore batteries in pouch, cylindrical and prismatic formats.
• Initial production [from South Korea agreement] is expected to include a balanced SiCore cell engineered to deliver high-energy and high-power performance for an advanced drone.
• We have expanded production at our pilot line in Fremont, California to expedite the SiCore qualification process with our customers.
• As customers move through the qualification process and request high volume orders, we are able to deliver through our existing contract manufacturers.
• We intend to continue to add to our manufacturing capacity in our Fremont, California facility with support from the U.S. Government Defense Innovation Unit through a $10.5 million contract awarded in July 2025.
• We have completed the retrofit of our anode fabrication machine and are optimizing our manufacturing protocol to maximize output of our SiMaxx 500 Wh/kg battery platform.
• Tom Stepien was appointed President of Amprius and oversees our commercial growth and market expansion to meet the accelerating demand for our high-performance silicon battery technology.
• Mr. Stepien brings over 35 years of experience across customer-focused, innovation-driven technology companies. He is focused on expanding strategic partnerships, strengthening customer relationships, and opening new growth opportunities in high-impact markets.
• We expect to incur additional losses in the future as we scale our business and increase our operating expenditures, including our research and development spend.
• We may raise additional funds in order to meet our future operating and capital expenditure requirements, and we may be unable to raise additional funds or enter into such other agreements when needed on favorable terms or at all.
• If sufficient funding is not raised, we may need to reduce our spending activities, which may negatively affect our ability to achieve our operating goals.
• The scope and schedule of the construction of this facility [Brighton, CO] will be determined based on, among other factors, the availability and timing of funding.
• We are currently monitoring the larger industry dynamics and have engaged a leading global commercial real estate company to explore the potential sublease of all or a portion of this facility [Brighton, CO].

Industry Context

The company operates in the rapidly evolving and highly competitive lithium-ion battery market, specifically targeting mobility applications in aviation, electric vehicles (EVs), and light electric vehicles (LEVs). It positions itself with a disruptive silicon anode technology, claiming superior energy density, power density, fast charging, and safety compared to conventional graphite lithium-ion batteries. The company believes it is the only known manufacturer using a 100% silicon anode free of inactive additives and a leader in high-performance batteries for aviation and LEV applications. The EV battery industry is noted for having a limited number of commercially available batteries meeting minimum performance specifications, creating a fast-growing and competitive landscape for market share.

Comparison to Industry Standards

• The company believes it is the only known manufacturer using a 100% silicon anode that is free of any inactive additives.
• The company believes it is the leading company in the market that has a high-performance battery capable of meeting the requirements of aviation and LEV applications.
• Batteries and their performance specifications have been tested and validated by long-term partners such as AALTO Airbus, AeroVironment, BAE Systems, Kraus Hamdani Aerospace, Teledyne FLIR, and the U.S. Army.
• NA The filing does not provide specific comparable companies, projects, or results for direct benchmarking against global industry standards beyond the company's self-assessment of its market position and technology.

Management Changes

Corporate Governance

Legal Proceedings

• No current material litigation or legal proceedings are expected to have a material adverse effect on the business, financial position, results of operations, or cash flows.

Related Party Transactions

• The Chief Executive Officer serves as a member of the board of directors of Berzelius (a former affiliated company) and its holding company.
• The company entered into an Exclusive Supply Agreement with Berzelius in November 2023, granting exclusive rights to purchase its proprietary silicon anode materials in the United States, Canada, and Mexico.
• The company has purchased, and may continue to purchase, SiCore batteries and raw materials for battery production and R&D activities from Berzelius.
• As of June 30, 2025, there were no purchase commitments with Berzelius.

Stakeholder Impact

• Shareholders face potential dilution from future equity raises, but benefit from significant revenue growth and reduced losses, which could positively impact share price.
• Employees may see increased opportunities due to headcount growth and continued investment in R&D and manufacturing, with stock-based compensation as part of remuneration.
• Customers are expected to benefit from increased product availability (SiCore), ongoing product development (SiMaxx optimization, larger form factors), and expanded manufacturing capacity aimed at meeting growing demand.
• Suppliers, particularly third-party manufacturers like Berzelius and global contract manufacturers, will continue to be critical partners, with potential for increased orders as the company scales production.
• Creditors may view the improved financial performance (reduced losses, gross profit) positively, but the company's continued reliance on external capital and accumulated deficit indicate ongoing financial risk.

Next Steps

• Continue to expand the global network of contract manufacturing partnerships to meet increased demand for SiCore batteries.
• Continue to add to manufacturing capacity in the Fremont, California facility, including electrode manufacturing, with support from the U.S. Government Defense Innovation Unit.
• Optimize the manufacturing protocol for the SiMaxx 500 Wh/kg battery platform.
• Determine the scope and schedule for the GWh-scale manufacturing facility in Brighton, Colorado, based on funding availability and industry dynamics.
• Explore the potential sublease of all or a portion of the Brighton, Colorado facility.
• Continue investing in research and development to improve battery life, further enhance energy density, and develop larger cell form factors.
• Potentially engage with electric vehicle (EV) manufacturers to incorporate batteries into their products.

Key Dates

Recommendation

While Amprius Technologies demonstrates impressive revenue growth and a significant reduction in net losses, indicating strong operational progress and market demand for its products, it remains unprofitable with a substantial accumulated deficit. The uncertainty surrounding the Brighton facility's development and continued reliance on external funding for future scaling present notable risks. The current financial position suggests a positive trajectory, but it is still an early-stage company in a highly competitive and capital-intensive industry. A 'Hold' recommendation reflects the positive operational momentum while acknowledging the inherent risks and the need for further progress towards sustained profitability and independent funding.

Keywords

Lithium-ion batteries, Silicon anode, Energy density, Electric vehicles, Aviation, Drones, UAS, HAPS, SiCore, SiMaxx, Battery manufacturing, SEC filing, 10-Q, Financial results, Q2 2025, Capital raise, Supply chain, Corporate governance