Ses Ai Corporation · NYSE:SES
Ses Ai — SES Holdings — SPAC Merger (July 2021)
62 slides from Ses Ai's SPAC merger presentation, Jul 13, 2021
Slide 1: Hybrid Li-Metal Batteries Investor Presentation
JUL Y 2021 S E S Hybrid Li - Metal Batteries INVESTOR PRESENTATION
Slide 2: Disclaimer
DISCLAIMER SE S GENERAL This presentation is provided for informational purposes only and has been prepared to assist interested parties in making their own evaluation with respect to a potential business combination between SES Holdings Pte. Ltd. (“SES” or the “Company”) and Ivanhoe Capital Acquisi
Slide 3: Disclaimer (Continued)
DISCLAIMER (CONTINUED) SE S PARTICIPANTS IN THE SOLICITATIONS Ivanhoe, SES and their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from Ivanhoe’s shareholders in connection with the proposed business combination. You can find information
Slide 4: Transaction Overview
T R ANSA C T IO N O V E R V I E W SE S Empowering the Market Leader in Next - Generation Lithium Metal Batteries Transaction Structure • SES Holdings Pte Ltd. (“SES”) to combine with a wholly - owned subsidiary of Ivanhoe Capital Acquisition Corp. (“Ivanhoe”), a publicly - listed Special Purpose Acq
Slide 5: Backed by Experienced Investors & Operators
BACKED BY EXPERIENCED INVESTORS & OPERATORS EXISTING INVESTORS IVANHOE CAPITAL ACQUISITION CORP. Brings strong relationships and significant credibility with key potential customers Offers deep experience and access relevant to sourcing critical raw materials Shareholder - aligned promote structure
Slide 6: Investment Highlights
DIFFERENTIATED BATTERY TECHNOLOGY Leading Energy Density with Proven Safety Characteristics, Supported by a Strong IP Portfolio DESIGNED FOR MANUFACTURING AT SCALE Industry - Leading Manufacturing Maturity Among Li - Metal Cells Today HIGH BARRIERS TO ENTRY Nearly a Decade of R&D and Capital Investm
Slide 7: Ivanhoe Has Conducted Extensive Technical Due Diligence
IVANHOE HAS CONDUCTED EXTENSIVE TECHNICAL DUE DILIGENCE… SE S MARK NEWMAN Advisor to Ivanhoe BILLY WU Advisor to Ivanhoe …O U R P R O C E S S C O N C L U DE D T H A T S E S' S AP P R O A C H T O LIT H I U M M E T AL BATTERIES IS THE MOST COMPETITIVE AMONGST ALTERNATIVES Diligence Effort Led by Ivanh
Slide 8: Leadership Team
SEs LEADERSHIP TEAM DR. QICHAO HU ROHIT MAKHARIA JING NEALIS Founder and CEO President and COO CFO
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Slide 10: We Create Hybrid Li-Metal Batteries
We Create Hybrid Li - Metal Batteries That Offer: The Leading Energy Density of Next Gen Li - Metal The Manufacturability of Traditional Li - ion Independently - Tested Performance 10
Slide 11: Why Hybrid Li-Metal?
WHY HYBRID LI - METAL? SE S Conventional Li - ion A no de Separator Ca t h o d e ض Energy Density M anu fact u r ab i l it y SES Hybrid Li - Metal ض ض Energy Density M anu fact u r ab i l it y All - Solid - State Li - Metal Solid - State Separator Never Demonstrated at Scale Solid - State Cathode Ne
Slide 12: Superior Technology, Safety and Manufacturability
12 Superior Technology, Safety and Manufacturability DENSER Projected 400 Wh/kg and 1,000 Wh/L, leading to significantly longer driving range SAFER Proprietary electrolyte and AI algorithm greatly enhance safety CHEAPER Designed to be manufacturable at scale using existing infrastructure and process
Slide 13: Our Team
OUR TEAM SE S DR. QICHAO HU Founder Chief Executive Officer JOANNE BAN Chief Legal Officer Chief Corporate Officer ROHIT MAKHARIA President Chief Operating Officer YONGKYU SON Chief Technology Officer RICHARD CHANG VP of Business Development JING NEALIS Chief Financial Officer DR. HONG GAN Chief Sci
Slide 14: Our Footprint
OUR FOOTPRINT SE S Localized “Build Where We Sell” Strategy Positions SES to Realize Scale in Multiple High - Growth Markets Boston S e o u l S h ang h ai S i n gap o r e • Chemistry, materials, algorithm R&D • Pilot plant • Collaboration with GM BOSTON • Legal • Finance • Holding HQ SINGAPORE • Sup
Slide 15: Years of R&D, Facilities, Capital Raised
9 Years of Research and Development 2 B at t e r y Prototyping Facilities in US and China $ 270 MM Capital Raised to Date Global OEM #3
Slide 16: Global Leadership in Hybrid Li-Metal Battery Production
GL O BA L LEAD ER S H I P IN HYBRID LI - METAL BATTERY PRODUCTION
Slide 17: Our Partnership with GM
SE S O U R PA RTN E RS H I P W I T H G M + Strong History and Relationship with One of World’s Most Forward Thinking EV OEMs General Motors Is a Believer in an EV Future… …And a Close Partner of SES 2015 – 2019 $10MM equity investment from GM Close technical and R&D collaboration April 2021 Addition
Slide 18: Our Partnership with Hyundai
SE S O U R PA RTN E RS H I P W I T H H Y U NDAI + Partnership With a Well - Positioned Global Leader in the Future of EVs Hyundai Is Committed to an Electric Future… …And Are Believers in SES’s Technology 18 December 2020 Pre - A JDA June 2021 $50MM commitment to PIPE May 2021 $50MM equity investmen
Slide 19: The Opportunity
THE OPPORTUNITY SES 19
Slide 20: Energy Transition Is Now a Clear Focus
Climate change has become a defining factor in companies’ long - term prospects. Awareness is rapidly changing, and I believe that we are on the edge of a fundamental reshaping of finance – Larry Fink (BlackRock Chairman and CEO) January 2020 “ “ Climate action can be the foundation for a new era of
Slide 21: Batteries Will Be a Key Enabler of Electrification at Scale
February 16, 2021 “ “ October 3, 2020 “ “ January 22, 2021 “ “ …BAT T E R I E S W IL L B E A KE Y E NABL E R OF ELECTRIFICATION AT SCALE 21 SE S
Slide 22: Global Electrification Commitments Are Precipitating Imminent Change
GLOBAL ELECTRIFICATION COMMITMENTS ARE PRECIPITATING IMMINENT CHANGE SE S Target to sell 100% zero - emission vehicles by 2035 Canada Proposed ban on selling new petrol, diesel or hybrid cars by 2035 United Kingdom Norway EVs accounted for 58% of all car sales in March 2019 with regulations targetin
Slide 23: The Passenger EV Battery TAM Is Massive
SE S T H E P ASSE NGE R E V BAT T E R Y T A M I S M ASSI V E Commercial EVs, Drones and Other Applications Further Expand the Opportunity $350Bn $ 165 B n $19Bn 2020 2030 2040 Battery Size: 45 kWh / EV 51 kWh / EV 56 kWh / EV Passenger EVs: 2.7M EVs 38MM EVs 90MM EVs Battery Pack Cost: $150 / kWh $8
Slide 24: Winning Technologies Are Smaller and Lighter
0 50 100 150 200 250 300 350 400 450 500 0 200 400 1, 0 0 0 1, 2 0 0 Wh/k g 600 Wh/L L i g h t er 800 S m a lle r L e ad Ac id NiCd NiMh L i - i o n (C) L i - i o n ( S i - C) Li - Metal 1850s 1890s 1980s 1990s Winning Tec h n o l o g i e s A r e Significantly Smaller and Li g h t e r T h a n Their
Slide 25: What Does the Market Need in a Battery?
W H A T DO E S T H E M AR KE T NE E D I N A BAT T E R Y ? SE S Energy Density Cost L i f eti m e Fast Charging Safety 25
Slide 26: Li-Metal Is the Battery of the Future
L i - i on L i - M e t al Energy Density Cos t 260 Wh/kg, 730 Wh/L Illustrative BEV range: ~350 miles Most widely manufactured battery technology today Projected 400 Wh/kg, 1,000 Wh/L, Illustrative BEV range: ~540 miles Significantly cheaper long - term Fast Charging 15 minutes typical fast charge t
Slide 27: How Do We Get There?
S E S HOW DO WE GET THERE? 1. Technology 2. Manufacturability 27
Slide 28: Technology
TECHNOLOGY 1. 28
Slide 29: Development of an OEM-Ready Battery
D EVE L O P M EN T O F A N O E M - R E A D Y B A TT E RY SE S Power: 300 mAh 3 Ah 6 Ah 9 Ah 50 Ah 100 Ah Layers: 3/4 layers 30/31 layers 30/31 layers 30/31 layers 20+ layers 30+ layers 29 Research 2013 – 2016 Development & Engineering 2016 – Present Pr e - P r o du ct io n 2022 P r o du ct io n 2023
Slide 30: Our Demonstrated Performance
OUR DEMONSTRATED PERFORMANCE SE S Measured (4 Ah): 370 Wh/kg, 700 Wh/L ض Projected (100 Ah A - sample): >400 Wh/kg, >1,000 Wh/L --- M an uf a ctu r - ability Demonstrated multi - layer cells can be built using Li - ion - like assembly process ض 3/4 Layer Up to 779 cycles (70% capacity retention) In
Slide 31: Dendrite Formation Is a Key Cause of Cycle Life Decay and Safety Risks
Dendrite Formation Is a Key Cause of Cycle Life Decay and Safety Risks SES Hybrid Li - Metal Battery Design and Software Helps to: x Slow Down Dendrite Growth x Detect Safety Issues Early 98μm 58μm
Slide 32: SES Hybrid Li-Metal Battery Technology
SES HYBRID LI - METAL BATTERY TECHNOLOGY SE S …Combined in a Proprietary Cell Design for Optimized Performance and Safety Solvent - in - Salt Liquid Electrolyte Formula • Low - volatility and self - extinguishing Composite Anode Coating • Mechanical barrier to enhance safety Wide Format Li - Metal A
Slide 33: Safety Enhanced Using Machine Learning Algorithm
SAFETY FURTHER ENHANCED USING OUR MACHINE LEARNING ALGORITHM S E S 33
Slide 34: Our Intellectual Property
111 patents (1) 25 trade secrets, know - how in each of the core areas of the ecosystem OUR INTELLECTUAL PROPERTY SE S Holistic IP Portfolio With Robust IP Capture Program Cells/Packs/Modules • Anode - Free • Anode - Light • High Energy Density • Packs / Modules (Expandable & Constrained) Recycling
Slide 35: Manufacturability
MANUFACTURABILITY 2 . 35
Slide 36: Over Fifteen Thousand Multi-Layer Cells Produced
As of March 2021, SES has produced over fifteen thousand multi - layer Hybrid Li - Metal cells using our Li - ion - like production line 36
Slide 37: SES Hybrid Li-Metal Is the Most Practical Approach
SES HYBRID LI - METAL IS THE MOST PRACTICAL APPROACH TO LI - METAL SE S All - Solid - State Li - Metal Solid - State Separator Never Demonstrated at Scale Lithium Metal Anode Enables Step - Function Increase in Energy Density SES Hybrid Li - Metal Design Allows for a Practical Approach to Separator
Slide 38: Energy Density vs Manufacturability
Energy Density (Wh/ k g) Manufacturability 300 250 400 Liquid Li - Metal Hybrid Li - Metal Solid State Li - Metal All Solid State Li - Metal 350 Liquid Li - Metal Graphite With Silicon Li - ion
Slide 39: A Cost-Effective Approach to Li-Metal Technology
SE S A COST - EFFECTIVE APPROACH TO LI - METAL TECHNOLOGY SES Hybrid Li - Metal Technology Provides Greater Certainty of Realizing Significant Cost Savings Li - ion Pr o d u c er s’ Cell Cost Li - Metal Pr o d u c er s’ Cell Cost Energy Density I mp r o v e m e n t s 39 Unproven M anu fact u r ing P
Slide 40: SES Is Positioned to Become a Leading Next-Gen Battery Provider
SES IS POSITIONED TO BECOME A LEADING NEXT - GEN BATTERY PROVIDER SE S The Next Generation of Battery Leaders Will Require… Leading Li - Metal Technology A Path to Manufacturing at Scale 40
Slide 41: Commercialization Path and Manufacturing Scale-Up
Research & De v e l op m en t Technology Development: Li - Metal Systems Pilot: 1 GWh (2024) JV Cell Plant: 10 GWh (2025) Ramping to 30 GWh (2028) OEM Cell Plant: 30 GWh (2026) Ramping to 70 GWh (2028) Commercializatio n Joint Development Agreements G
Slide 42: ESG: Part of Our DNA
E S G : PA R T O F O U R D N A SE S High energy density batteries are key to electric vehicle adoption. SES is positioned to play a crucial role in reducing CO 2 emissions for a greener future DECARBONIZATION SES is developing a comprehensive lithium metal recycling program RESPONSIBLE RECYCLING As
Slide 43: Financials
FINANCIALS SES 43
Slide 44: Our Capacity Projections
OUR CAPACITY PROJECTIONS SE S Total Capacity by Facility GWh 44 5% Market Share (3) Global Battery Leadership 1MM+ EVs Annually (2) 1 10 20 1 30 1 30 1 30 50 70 -- -- 1 11 51 81 101 2022E 2023E Notes: 1. Capacity shown on a 100% consolidated basis; SES will own 50% of the facility 2. Assumes 100 kWh
Slide 45: Our Revenue Projections
OUR REVENUE PROJECTIONS SE S Revenue US$Bn, unless otherwise noted Highly Attractive Growth Profile Leading to Significant Scale by 2028 520% 545% 78% 24% YoY Revenue Growth (%): 0 . 1 0 . 8 1.4 0.1 1.3 0.1 2 . 3 4 . 2 5 . 6 -- -- $0 . 1 $0 . 5 $3 . 2 $5 . 7 $7 . 0 2 0 2 2 E 2 0 2 3 E 2 0 2 7 E 2 0
Slide 46: Our Profitability
OUR PROFITABILITY SE S Gross Profit US$Bn, unless otherwise noted Best - in - Class Gross and EBITDA Margins Reflecting Technology and Cost Advantages EBITDA US$Bn, unless otherwise noted -- -- ($0.0) $ 0 . 1 $ 0 . 7 $ 1 . 8 $ 2 . 2 202 2 E 202 3 E 202 4 E 202 5 E 202 6 E 202 7 E 202 8 E 12% Gross M
Slide 47: Our Free Cash Flow
O U R FR E E C AS H F LO W SE S Free Cash Flow (After Project Financing) US$Bn, unless otherwise noted ( $0 . 1) Pilot + Expansion I FCF (After Project Financing): ( $0 . 1) ( $0 . 2) ( $0 . 2) ( $0 . 0) $0 . 3 $0 . 3 ( $0 . 1) 47 ( $0 . 1) ( $0 . 2) ( $0 . 2) $0 . 7 $0 . 9 2 0 2 2 E 2 0 2 3 E 2 0 2
Slide 48: Our Factory Economics
OUR FACTORY ECONOMICS SE S • Total expected capex required: $1.8Bn – 50% funded by SES, and 50% funded by JV partner – 70% funded with project - level debt financing, 30% funded with equity – SES to fund 100% of capex related to key cell material sales to JV Expansion 1, 30 GWh U S$ B n P r e - P r
Slide 49: Benchmarking Ourselves to Energy Transition Peers
B E N C H M AR KIN G O U R S E L VE S T O O U R NE W E NE R G Y P EE R S SE S Revenue Growth (%) Source: Management Estimates, QuantumScape Analyst Presentation (dated October 15, 2020), ChargePoint Investor Presentation (dated September 23, 2020), Stem Investor Presentation (dated December 1, 2020)
Slide 50: Attractive Valuation Relative to Peers
A TTRA C T I V E V A L U A T I O N R E L A T I V E T O P E E RS SE S EV / Revenue (x) Energy Transition Peers 50 2025E 2025E 2025E 0 . 5 x 2 . 7 x 0 . 4 x 1 . 3 x 2027E 2028E 1.0x 0.5x 2027E 2028E 5 . 9 x 5 . 3 x 5 . 6 x 4 . 1 x 2025E At Time of Deal Source: Management Estimates, QuantumScape Analys
Slide 51: Significant Upside Potential
SIGNIF I C AN T U P SID E P O T E NT IAL S E S Public Li - Metal Battery Peer Valuation Discounted Enterprise Value Transaction Enterprise Value US$Bn 51 Based on QuantumScape EV / 2028E Revenue multiple as of July 9, 2021 Peer EV / 2025E Revenue multiple range (excluding QuantumScape) Assumes $10 p
Slide 52: Transaction Summary
T R ANSA C T IO N SU MM AR Y SE S Notes: 1. Assumes no redemptions from the public shareholders of Ivanhoe and excludes earn - out of 30.0MM shares 2. Values shown assuming $10.00 per Ivanhoe share; does not include impact of out - of - the - money warrants 3. As of March 31, 2021 4. PIPE shares iss
Slide 53: SES: Best Positioned in the Next-Gen Battery Arena
SES: BASED ON EXTENSIVE DILIGENCE, IVANHOE BELIEVES SES IS THE BEST POSITIONED IN THE NEXT-GEN BATTERY ARENA AND MATCHES IVANHOE INVESTMENT CRITERIA Investment Criteria (©) SES Beyond Li-ion™ Enables the paradigm shift towards the electrification of industry and society JV Positioned to capitalize o
Slide 54: Appendix
APPENDIX SES 54
Slide 55: Cell Cycle Life (Cycles)
3 / 4 LAY E R S C E L L C Y C L E LIF E ( 90 0 C Y C L E S ) SE S 0 .0 55 50 . 0 100 .0 150 .0 200 .0 250 .0 300 .0 0 100 200 300 400 500 Cycle Number 600 700 800 900 1000 Discharge Capacity (mAh) Cycle vs Discharge Capacity (Ch: 4.3V/0.2C, Dch: 3V/1.0C, Rest: 10 min., Temperature: 25º C)
Slide 56: Ah Cell Cycle Life (Cycles)
4 A H CEL L C Y C L E L I F E ( 55 0 C Y C L E S ) SE S 4 .5 4 .0 3 .5 3 .0 2 .5 2 .0 1 .5 1 .0 0 .5 0 .0 56 0 100 200 300 400 500 600 700 Disharge Capacity (Ah) Cycle Number Cycle vs Discharge Capacity (Ch: 4.3V/0.2C, Dch: 3V/1.0C, Rest: 10 min., Temperature: 25º C)
Slide 57: Ah Cell Charge C-Rate Capability
4 A H CEL L CH A R G E C - R AT E C AP ABILIT Y ( 2 5 º C ) SE S 4 .3 0 4 .1 5 4 .0 0 3 .8 5 3 .7 0 3 .5 5 3 .4 0 3 .2 5 3 .1 0 2 .9 5 2 .8 0 2 .6 5 2 .5 0 0 .0 0 .2 0 .4 0 .6 0 .8 1 .0 1 .2 1 .4 1 .6 1 .8 2 .0 2 .2 2 .4 2 .6 2 .8 3 .0 3 .2 3 .4 3 .6 3 .8 4 .0 4 .2 4 .4 Capacity (mAh) c c Voltage (V
Slide 58: Electrolyte Composition
ELECTROLYTE COMPOSITION SE S High Concentration Solvent almost fully coordinated No free solvent Low Concentration Most solvent molecules are uncoordinated SES electrolyte uses a high concentration solvent - in - salt approach. A conventional liquid electrolyte is low concentration, where the salt i
Slide 59: SES vs. Li-Metal Peers
S E S V S . LI - M E TA L P E E RS SE S 59 3 rd party validated x X X Room Temperature Energy Density Cell type 4Ah (25+ layer) at 25ºC (Wh/kg) 1 layer and 4 layer 2Ah (10 layer) and 2 layer at 29ºC (Wh/kg) Low power C/20 >375* n/a 330 Low power C/10 375 n/a ~264 Medium power 1C 339 n/a ~33 High pow
Slide 60: Risk Factors
R I S K FA C TORS SE S 60 Key Risks Relating to SES Holdings Pte. Ltd. (“SES”) Certain factors may have a material adverse effect on our business, financial condition, and results of operations. The risks and uncertainties described below are not the only ones we face. Additional risks and uncertain
Slide 61: Risk Factors (Continued)
RISK FACTORS (CONTINUED) SE S 61 Risks Relating to Intellectual Property • We rely heavily on our intellectual property portfolio. If we are unable to protect our intellectual property rights, our business and competitive position would be harmed. • We may need to defend ourselves against intellectu
Slide 62: Beyond Li-ion
G)seEs Beyond Li-ion