Why SES AI Stock Surged Today
Key Points
SES AI plans to aggressively expand battery capacity in Korea.
Its target market is drone buyers from the U.S. and Europe.
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Shares of SES AI (NYSE: SES) jumped 13.7% in early Thursday trading after the developer of artificial intelligence (AI)-enhanced lithium-ion batteries announced a big collaboration in Korea.
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A massive drone deal
Lithium-metal and lithium-ion batteries are not new, but SES AI uses AI to discover new battery materials to build safer and stronger batteries for target markets such as electric vehicles (EVs), urban air mobility (UAM), drones, battery storage systems, and robotics.
Thursday morning, SES AI announced that it will collaborate with Korea-based Top Material to boost battery manufacturing capacity in Korea for drones and UAM.
SES AI already has a factory in Chungju, South Korea, primarily focused on producing batteries for the automotive industry. The company now plans to triple its capacity at the plant to nearly one million battery cells to meet the rising demand for drones from the U.S. and Europe. Its collaboration with Top Material, a battery cell manufacturer, is a step in that direction.
Importantly, the collaboration will build a battery supply chain that complies with NDAA (National Defense Authorization Act) requirements, making iSES AI a potentially important supplier of batteries for commercial and defense drones.
A day earlier, SES AI also unveiled a new version of its AI software, Molecular Universe, that companies are using to research and discover new battery materials that address the ongoing challenges in the battery market. SES AI expects to reveal more details at the 5th annual Battery World event to be held on Dec. 29, 2025.
Keep an eye on SES AI stock
SES AI's renewed focus on drones could be a key differentiator. The company is already generating revenues and moving toward a subscription-based revenue model for its AI software.
Shares of SES AI had surged over 60% in the year through mid-October but have since given up all of those gains, and some. Investor interest in the stock is likely to rebound as the company pitches Molecular Universe as the top "AI platform for energy transition" and monetizes it.
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Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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