Shares of Li-Metal batteries manufacturer SES AI Corporation ( SES ) are trading higher in premarket on Thursday.

SES AI has signed contracts valued at up to $10 million with two prominent global OEM partners, marking a milestone in utilizing AI for the discovery of battery materials.

These agreements aim to develop electrolyte materials for Li-Metal and Li-ion batteries in automotive applications.

SES AI said that a portion of the revenue from these contracts will be recognized in the fourth quarter of 2024, with the rest expected to be acknowledged by mid-2025.

These latest agreements with OEM partners build on the company’s prior announcement of the first battery to use an electrolyte material discovered through its AI-based Molecular Universe project.

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“These new contracts with our automotive OEM partners are applying our AI-discovered electrolytes for Li-Metal B-sample developments and for the first time with mature Li-ion batteries already in commercial use,” said Founder and CEO Qichao Hu.

“We believe this new revenue stream and these contracts validate and accelerate the commercial use of AI for Science for battery material discovery in automotive applications.”

Price Action: SES shares are trading higher by 20% at $0.9975 in premarket at the last check Thursday.

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