SES AI Signs Term Sheet to Establish Joint Venture to Commercially Supply Materials Discovered by Molecular Universe

New milestone reached for commercial validation of material discoveries made by Molecular Universe covering energy storage (ESS), data center, drones, robotics, EV, and eVTOL applications

SES AI Corporation ("SES AI", the "Company," "we" or "us") (NYSE:SES), a global leader in the development and manufacturing of AI-enhanced high-performance Li-Metal and Li-ion batteries, today announced that it has signed a term sheet to establish a joint venture with Hisun New Energy Materials Ltd. Co. ("Hisun"), a Texas-based electrolyte contract manufacturer, to commercially supply electrolyte materials discovered by SES AI's Molecular Universe. The joint venture, which will be 90% owned by SES AI, is subject to the execution of a binding definitive agreement, which is expected to be executed by the end of this month.

In just six months after the original launch of Molecular Universe, SES AI and its enterprise customers have used Molecular Universe to discover several novel electrolyte materials including:

• Low-to-medium content silicon anode Li-ion electrolyte for EV applications,
• High content silicon anode Li-ion electrolyte for drones and robotics applications,
• Li-Metal electrolyte for drones and eVTOL applications, and
• Lithium iron phosphate (LFP) Li-ion electrolyte for ESS applications.

The proposed joint venture marks a major milestone in the validation of these newly discovered electrolytes, as the JV intends to produce and supply them on a commercial scale. In addition to the Molecular Universe's existing SaaS model that includes software subscriptions and development services, the JV is expected to represent a new recurring revenue source for the Company by supplying discovered materials to customers globally.

"We have already demonstrated how quickly Molecular Universe can accelerate material discovery for battery makers. As announced with our latest version, MU-1, our plan is to use the Molecular Universe as a building block to grow our electrolyte materials and our battery cell supply strategies. We expect this JV to provide us with a new source of recurring revenue and allow us to maintain a capex-light approach by leveraging Hisun's existing manufacturing capacity to accelerate commercial supply of these AI discoveries," said Qichao Hu, Founder and CEO of SES AI.

About SES AI:

SES AI Corp. (NYSE:SES) is powering the future of global electric transportation on land and in the air with the world's most advanced Li-Metal batteries. SES AI is the first battery company in the world to accelerate its pace of innovation by utilizing superintelligent AI across the spectrum of its business, from research and development; materials sourcing; cell design; engineering and manufacturing; to battery health and safety monitoring. Founded in 2012, SES AI is an Li-Metal battery developer and manufacturer headquartered in Boston and with operations in Singapore, Shanghai, and Seoul. Learn more at SES.AI.

SES AI may use its website as a distribution channel of material company information. Financial and other important information regarding SES AI is routinely posted on and accessible through the Company's website at www.ses.ai. Accordingly, investors should monitor this channel, in addition to following SES AI's press releases, Securities and Exchange Commission filings and public conference calls and webcasts.

About Hisun:

Headquartered in Houston, Texas, Hisun New Energy Materials is a leading electrolyte contract manufacturer with over 150,000 tons in annual global capacity. Hisun focuses on new energy battery materials, with its main products including electrolyte for lithium/sodium ion batteries and silicon carbon anode materials. Hisun has secured land outside of Houston for a US-based electrolyte manufacturing facility. Learn more at www.thehisun.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, about us and our industry that involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as "will," "goal," "prioritize," "plan," "target," "expect," "focus," "look forward," "opportunity," "believe," "estimate," "continue," "anticipate," "project" and "pursue" or the negative of these terms or similar expressions. These statements are based on the beliefs and assumptions of the management of the Company. You should not place undue reliance on these forward-looking statements. Although the Company believes that its plans, intentions and expectations reflected in or suggested by these forward-looking statements are reasonable, it cannot provide assurance that it will achieve or realize these plans, intentions or expectations. Should one or more of a number of known and unknown risks and uncertainties materialize, or should any of our assumptions prove incorrect, our actual results or performance may be materially different from those expressed or implied by these forward-looking statements. Some factors that could cause actual results to differ include, but are not limited to, among other things, the entry into definitive documentation regarding the joint venture, which is currently under negotiation based on the understanding set forth in the non-binding term sheet; the risk that the market for electrolyte discovered by Molecular Universe may not reach the level of demand that we expect; the ability of Molecular Universe to continue discovering new materials which suit customer needs; the ability of the joint venture to achieve the intended benefits of its strategic objectives; difficulties or delays in obtaining any required regulatory approvals; competition from other electrolyte manufacturers; the potential that manufacturing costs may exceed our expectations; our use of artificial intelligence and machine learning may result in legal and regulatory risk; our ability to attract, train and retain highly skilled employees and key personnel; risks related to our intellectual property; business, regulatory, political, operational, financial and economic risks related to our business operations; and the other risks described in "Part I, Item 1A. Risk Factors" in our annual report on Form 10-K for the fiscal year ended December 31, 2024 filed with the Securities and Exchange Commission ("SEC") on February 28, 2025 and other documents filed from time to time with the SEC. There may be additional risks that we presently know and/or believe are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect our expectations, plans or forecasts of future events and views only as of the date of this press release. We anticipate that subsequent events and developments will cause its assessments to change. However, while we may elect to update these forward-looking statements at some point in the future, we specifically disclaim any obligation to do so. These forward-looking statements should not be relied upon as representing our assessment as of any date subsequent to the date of this press release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20251014634801/en/

For the media:

[email protected]

For investors:

[email protected]