Executive Summary / Key Takeaways

• Technological Leadership Driving Growth: Amprius Technologies (AMPX) is a pioneer in silicon anode lithium-ion batteries, offering unmatched energy and power density (up to 500 Wh/kg validated) that enables superior performance in demanding applications like aviation and light electric vehicles, a critical differentiator against conventional batteries and a foundation for future growth.
• Accelerating Revenue and Emerging Profitability: The company reported a significant 350% year-over-year revenue increase to $15.1 million in Q2 2025, driven by its SiCore product line. Crucially, AMPX achieved a positive gross margin of 9% for the first time, signaling a pivotal shift towards profitability as its capital-light contract manufacturing model scales.
• Strategic Manufacturing and Customer Diversification: AMPX leverages a capital-light model with 1.8 GWh of contract manufacturing capacity, complemented by a growing U.S. pilot line (supported by a $10.5 million DoD contract) and a new South Korean partnership. This global diversification mitigates geopolitical risks and expands market reach, evidenced by 86% of Q2 2025 revenue from outside the U.S.
• Robust Customer Pipeline and Market Opportunity: With over 360 customer engagements and significant wins like a $15 million UAS order and a potential 2 GWh LEV LOI, AMPX is converting qualifications into volume orders. The rapidly expanding drone market ($213 billion by 2032) and LEV sector ($136 billion by 2029) present substantial addressable markets for its high-performance batteries.
• Lean Operations and Strong Liquidity: AMPX maintains a strong balance sheet with $54.2 million in cash and no debt as of June 30, 2025, supported by an available $46.7 million ATM facility. A lean operating expense structure and minimal CapEx plans for 2025 underscore a disciplined approach to capital management, providing a long runway for continued execution.

The Dawn of Silicon: Amprius's Ascent in Electric Mobility

Amprius Technologies, Inc. (NYSE:AMPX) stands at the forefront of a transformative shift in electric mobility, pioneering high-performance silicon anode lithium-ion batteries. Founded in 2008 in Fremont, California, the company has spent over a decade in research and development, culminating in commercial battery production since 2018. This journey laid the groundwork for its current strategic focus: delivering disruptive battery technology that redefines energy and power density across aviation, electric vehicles (EVs), and light electric vehicles (LEVs).

The broader industry landscape is characterized by an insatiable demand for more efficient and powerful energy storage solutions. The global drone market alone is projected to surge from $18 billion in 2023 to $213 billion by 2032, with the battery component representing a $4.5 billion to $5 billion opportunity. Similarly, the electric aircraft and eVTOL market could reach $50 billion by 2030, while the light electric vehicle sector is expected to grow to $136 billion by 2029. These trends underscore a massive addressable market for AMPX's differentiated technology, setting the stage for its strategic initiatives and recent financial performance.

Technological Edge: The Silicon Anode Advantage

Amprius's core competitive advantage lies in its proprietary silicon anode technology, which fundamentally outperforms conventional graphite lithium-ion batteries. The company boasts the most complete commercially available portfolio of silicon anode material systems, including silicon monoxide, silicon carbon, and silicon nanowire. This technological leadership translates into tangible, quantifiable benefits for its customers and a significant competitive moat for investors.

AMPX's batteries deliver up to 450 Wh/kg and 1,150 Wh/L, with a validated 500 Wh/kg and 1,300 Wh/L platform in development. These metrics represent a 73% higher energy density than typical 260 Wh/kg conventional batteries. Such performance enables critical applications like AALTO Airbus's Zephyr high-altitude pseudo-satellite (HAPS) aircraft to achieve world-record 67-day uninterrupted flights, showcasing the ability to provide dependable overnight power. Furthermore, AMPX's cells offer 10C power capability and an extreme fast-charge rate of 0% to 80% state of charge in approximately 6 minutes, coupled with a wide operating temperature range of -30°C to 55°C and safety features that pass U.S. military nail penetration tests. For investors, this means AMPX's batteries are not merely incremental improvements but enable entirely new applications or significantly enhance existing ones, driving higher value and potentially premium pricing.

The company's product portfolio is built around two main platforms: SiCore and SiMaxx. SiCore, launched in January 2024, is designed for scalability, leveraging standard lithium-ion processing equipment and contract manufacturing. Its SA102 cell has reached 450 Wh/kg and is already winning strong customer praise in the drone market. SiMaxx, manufactured at AMPX's Fremont facility, targets the ultra-high energy density segment with its 500 Wh/kg platform, supporting key development agreements with long-term customers like Airbus (AIR) and AeroVironment (AVAV) for the xTechPrime U.S. Army grant program, which recently saw 517 Wh/kg cells delivered. AMPX's R&D efforts are focused on continuous improvement, including enhancing battery life, further increasing energy density (e.g., exploring conversion cathodes), and developing larger cell form factors to penetrate broader EV applications. These initiatives aim to widen the performance gap with competitors and secure long-term market leadership.

Strategic Execution: Capital-Light Manufacturing and Global Reach

AMPX's strategy for scaling production is as innovative as its technology. The company employs a "capital-light contract manufacturing model," which provides access to substantial production capacity without the heavy capital expenditures typically associated with battery factory construction. As of June 30, 2025, AMPX has access to up to 1.8 GWh of SiCore battery production capacity through its global contract manufacturing partners, primarily in China and, more recently, South Korea. This approach allows AMPX to rapidly scale production to meet demand, maintain cost-competitiveness, and allocate capital to R&D and customer acquisition.

The company's manufacturing footprint is strategically diversifying. In May 2025, AMPX announced a new contract manufacturing agreement with a leading battery manufacturer in South Korea, with initial production of high-performance SiCore cells for advanced drones expected to commence in August 2025. This move enhances geographic diversification and addresses specific supply chain requirements from customers. Domestically, AMPX is expanding its Fremont, California pilot line to expedite SiCore qualification for customers and to add electrode manufacturing capabilities. This expansion is supported by a $10.5 million contract awarded in July 2025 from the U.S. Government Defense Innovation Unit (DIU), covering over 50% of the build-out for a 10 MWh/year pilot line. This initiative is crucial for producing NDAA-compliant batteries, particularly for the burgeoning U.S. defense drone market, where policy actions are accelerating adoption.

While pre-construction planning for a GWh-scale manufacturing facility in Brighton, Colorado, is complete, AMPX has strategically put full construction on hold. The company is monitoring industry dynamics, including demand, supply, battery cost structure, government incentives, and funding availability, and is exploring subleasing options. This pragmatic decision underscores AMPX's commitment to capital efficiency and leveraging its existing contract manufacturing network to meet foreseeable demand.

Financial Performance: A Turning Point

Amprius's strategic execution is now translating into significant financial momentum. For the second quarter ended June 30, 2025, the company reported total revenue of $15.1 million, a remarkable 350% increase from $3.3 million in Q2 2024 and a 34% sequential increase from Q1 2025. Product revenue, primarily driven by SiCore shipments, surged by 335% year-over-year to $14.5 million. This strong growth propelled AMPX to achieve a positive gross margin of 9% for the first time, a substantial improvement from negative 21% in Q1 2025 and negative 195% in Q2 2024. Management attributes this directly to the SiCore product line's inherent positive gross margin contribution and higher sales volume.

Operating expenses remained lean at $8.2 million in Q2 2025, increasing by 27% year-over-year due to strategic investments in sales and R&D, but demonstrating operating leverage relative to revenue growth. The company's net loss significantly narrowed to $6.4 million, or $0.05 per share, a 49% reduction from $12.5 million in Q2 2024. This financial trajectory indicates a pivotal shift towards sustainable profitability.

AMPX's liquidity position is robust, with $54.2 million in cash and cash equivalents and no debt as of June 30, 2025. Management believes this cash, combined with expected revenue, is sufficient to fund obligations for at least the next twelve months. The company also has approximately $46.7 million remaining under its $100 million At-the-Market (ATM) sales agreement, providing additional financial flexibility. The operating cash burn rate is managed at approximately $7.5 million to $9 million per quarter, excluding transaction-related costs. This disciplined financial management, coupled with a capital-light manufacturing strategy, positions AMPX for sustained growth without immediate, large-scale capital raises.

Competitive Landscape: A Niche of Performance

Amprius operates in an intensely competitive battery market, facing both established giants and innovative startups. Its primary direct competitors include electric vehicle manufacturers like Tesla, Inc. and solid-state battery developers such as QuantumScape Corporation and Solid Power, Inc. .

AMPX differentiates itself through its unmatched performance leadership in silicon anode technology. While Tesla benefits from immense scale, vertical integration, and significantly stronger revenue growth and profitability margins (TSLA's TTM Gross Profit Margin is 18% compared to AMPX's -20.02%, and TSLA's TTM P/S is 13.28 compared to AMPX's 20.00), AMPX targets high-performance niches where its superior energy and power density are critical. Tesla's (TSLA) focus on cost leadership and broad market penetration contrasts with AMPX's strategy of commanding a premium for its disruptive technology in specialized applications.

Against solid-state battery developers like QuantumScape and Solid Power , AMPX's silicon nanowire batteries offer the advantage of faster production cycles and better adaptability to existing lithium-ion manufacturing processes. QuantumScape (QS) and Solid Power (SLDP), while promising higher energy density and safety in the long term, are still in earlier stages of commercialization, reflected in their zero or negative gross margins and reliance on R&D investments. AMPX's established commercial shipments and positive gross margin for its SiCore product demonstrate a more immediate market impact and operational execution. AMPX's unique cell chemistry and comprehensive silicon anode portfolio provide a technological lead that, for many customers, makes it the only solution capable of meeting their stringent technical and economic needs. This allows AMPX to command a price premium, a strategy aimed at building scale before moving down the cost curve.

Indirect competitors include hydrogen fuel cell providers and traditional battery manufacturers. While these alternatives could offer different trade-offs in cost or implementation, AMPX's focus on energy density and rapid charging for specific mobility applications provides a distinct value proposition. The company's global contract manufacturing network further insulates it from geopolitical and tariff risks, a strategic response to the concentration of global battery supply in Asia.

Outlook: Sustained Momentum and Strategic Expansion

Management is optimistic about Amprius's future, anticipating sustained growth through 2025 and beyond. The company expects sequential revenue improvements, driven by the conversion of its extensive customer pipeline from qualification to volume purchase orders. The positive gross margin achieved in Q2 2025 is projected to continue growing, albeit with some quarterly lumpiness, as SiCore sales increasingly dominate the revenue mix. Operating expenses are expected to remain lean, with strategic investments focused on R&D to further enhance battery performance and expand the product roadmap, and in sales to deepen customer engagement.

Key initiatives for the remainder of 2025 include:

• Product Innovation: Continued introduction of new high-performance batteries, including further advancements in the SiCore platform and the commercial availability of the 500 Wh/kg SiMaxx product.
• Customer Conversion: Accelerating the qualification process for existing customers to translate engagements into mass production orders, particularly in the rapidly growing drone and LEV markets.
• Manufacturing Diversification: Ramping up production at the new South Korean contract manufacturing facility and expanding electrode manufacturing capabilities at the Fremont pilot line with U.S. government support, ensuring a diversified and NDAA-compliant supply chain.
• Strategic Partnerships: Leveraging new leadership, including President Tom Stepien, to expand strategic partnerships and penetrate high-impact markets like Amazon's Devices Climate Tech Accelerator program.

AMPX's ability to deliver on its $15 million UAS purchase order in H2 2025 and recognize revenue from the $20 million LEV contracts by mid-2025 will be critical indicators of its execution. The potential 2 GWh LOI with a Fortune Global 500 OEM for LEVs and the 1 million cells/year SiMaxx pouch cell development contract highlight the significant long-term opportunities that AMPX is actively pursuing.

Risks and Challenges

Despite the compelling growth narrative, Amprius faces several pertinent risks. The reliance on third-party contract manufacturers, particularly in China, exposes the company to potential supply chain disruptions, quality control issues, and geopolitical tensions. While diversification efforts are underway, these risks could impact production timelines and costs. The inherent safety risks associated with high energy density lithium-ion batteries, including the potential for thermal runaway, could lead to product recalls and significant liabilities, despite rigorous testing and safety features.

Scaling high-volume manufacturing, even through a capital-light model, presents engineering challenges and uncertainties in achieving target quality and yield rates. Furthermore, the highly competitive battery market, with well-capitalized incumbents and new entrants, could pressure pricing and market share. While AMPX's technology is differentiated, competitors may develop alternative solutions or improve existing technologies faster. Finally, as an early-stage company with a history of net losses (TTM Net Income of -$44.67 million), AMPX's ability to achieve sustained profitability and manage its cash burn rate remains a critical factor for investors.

Conclusion

Amprius Technologies is at a pivotal juncture, transforming its technological prowess into tangible financial performance. The company's silicon anode batteries, offering unparalleled energy and power density, are not just incremental improvements but foundational enablers for the next generation of electric mobility across aviation and light electric vehicles. The recent achievement of positive gross margins, driven by the scalable SiCore product and a capital-light manufacturing strategy, marks a significant validation of its business model.

AMPX's strategic focus on diversifying its manufacturing footprint, securing high-volume customer contracts, and continuous technological innovation positions it for sustainable growth. While competitive pressures and operational risks persist, the company's disciplined capital management, robust customer pipeline, and leadership in a rapidly expanding market underscore a compelling investment thesis. For discerning investors, Amprius represents an opportunity to participate in the electrification revolution, backed by a differentiated technology and a clear path to scaling profitability.