SES AI and Top Material Plan Major Boost to Korean Cell Manufacturing Capacity to Capture Growing Drone and UAM Market
SES AI Corporation (NYSE: SES), a leader in the development of AI-enhanced high-performance lithium-metal (Li-Metal) and lithium-ion (Li-ion) batteries, has announced plans to substantially increase its cell manufacturing capacity in Korea. This strategic expansion, undertaken in collaboration with Top Material (KOSDAQ: 360070), is centered on the company’s facility in Chungju, Korea, and is designed to address the rapidly growing demand from customers in the drone and urban air mobility (UAM) markets.
The announcement, made during a business update at the recent Battery World event, underscores SES AI’s pivot toward scaling production to capitalize on specialized, high-performance battery applications beyond traditional electric vehicles (EVs).
Strategic Collaboration Targets High-Growth UAM Sector
The decision to boost capacity in Chungju is a direct response to the increasing requirements of both existing and potential drone customers. The UAM sector, which includes electric vertical takeoff and landing (eVTOL) aircraft and advanced drones, requires batteries that offer extremely high energy density and safety—areas where SES AI’s Li-Metal technology is positioned to excel.
The partnership with Top Material is crucial to this expansion. Top Material, listed on KOSDAQ, is recognized for its expertise in advanced materials solutions, end-to-end gigafactory engineering systems for rechargeable batteries, and manufacturing of next-generation cathode materials in Korea. By leveraging Top Material’s local manufacturing and engineering prowess, SES AI aims to accelerate the deployment of its advanced cell technology.
The collaboration between SES AI and Top Material is designed to create a robust and efficient manufacturing pipeline capable of meeting the stringent quality and volume requirements of the aerospace and advanced drone industries. This move solidifies SES AI's commitment to the Asian market and its supply chain resilience.
Leveraging Korean Manufacturing Expertise
The Chungju facility serves as a key manufacturing hub for SES AI in Asia. Increasing capacity here allows the company to benefit from Korea’s established ecosystem for battery technology and manufacturing excellence. The focus on cell manufacturing capacity expansion is a necessary step for SES AI as it transitions its advanced battery chemistries from development to mass production for commercial applications.
- SES AI’s Role: Focuses on the development and manufacturing of AI-enhanced high-performance Li-Metal and Li-ion batteries.
- Top Material’s Role: Provides advanced materials solutions, gigafactory engineering expertise, and manufactures critical cathode materials.
The joint effort is expected to streamline the production process for high-performance cells specifically tailored for drone applications, which often require lighter weight and longer flight times than standard consumer electronics batteries.
Market Implications for Battery Technology
While much of the battery industry’s focus remains on the automotive sector, this capacity expansion highlights the growing financial materiality of the specialized drone and UAM markets. These sectors demand batteries with superior performance characteristics, often pushing the limits of current Li-ion technology, making advanced chemistries like Li-Metal increasingly attractive.
For SES AI (NYSE: SES), successfully scaling manufacturing capacity is critical for converting technology leadership into market share. The partnership with a local expert like Top Material (KOSDAQ: 360070) mitigates risks associated with large-scale manufacturing ramp-up and ensures access to high-quality materials and engineering support necessary for gigafactory operations.
The expansion plans signal confidence in the near-term commercial viability of advanced battery cells for non-automotive mobility solutions, positioning SES AI to become a key supplier in the rapidly evolving aerial mobility landscape.
