Chip Moore: Got it. That’s very helpful, Kang. Appreciate that. And maybe my follow-up for Fremont, I guess, anything to keep in mind as the year progresses, tie in of the cathode line or any other equipment that you need to put in — any downtime or anything like that we should keep in mind?
Kang Sun: Yes, our cathode line will come in probably third quarter. That’s the only missing piece of the equipment at this time. The reason is we have €“ for — our cathode has very specific coding specification. So the suppliers want to make sure they can satisfy our specification.
Chip Moore: Got it. Okay. Congrats on all the progress this year. Thanks.
Operator: Thank you. And our next question comes from Jeff Gramp with Alliance Global Partners. Please state your question.
Jeffrey Grampp: Good afternoon. A question for you guys on the 500 watt-hour product that’s going to be commercially available this year. Just curious to dig in on the timing a little bit more. Is that going to be a back half of ’24, kind of in line with that cathode line? And just big picture, kind of the pipeline that you guys are seeing in terms of demand there?
Kang Sun: Yes. The cathode line will not affect the shipment of this product. We are planning to have this product shipped to customers this year.
Jeffrey Grampp: Okay. Thank you. And for my follow-up, on the R&D side of things, curious kind of main initiatives or goals maybe for 2024, if you had to maybe bucket those in terms of key objectives, whether those relate to things like density, cycle life, different form factors or just any other kind of big picture objectives you guys are thinking about as it relates to R&D in ’24? Thanks.
Kang Sun: Yeah. We have a very ambitious goal for ‘24. And you will see the energy improvement in energy density and power, particularly the balance of energy density and the power. We are working on additional safety features for our battery. So 2024, you will see some breakthrough performance delivered from Amprius.
Jeffrey Grampp: All right. Thanks for the time.
Operator: Thank you. [Operator Instructions] Our next question comes from Donovan Schafer with Northland Capital Markets. Please state your question.
Donovan Schafer: Hey, guys. Thanks for taking the questions. So just really quick for the first one. Sorry if I missed this, and I’m guessing with the cathode line not coming on until Q3. I just want to clarify. So is it correct to say that the run rate for the megawatt hour capacity in Fremont right now is, from that incremental equipment is essentially zero? It’s still just a 250 kilowatt hours of capacity at the moment or are you actually able to get some incremental capacity out of whatever has been put in place already?
Kang Sun: Well, the line start running, already producing anode. As I mentioned, we have been sourcing cathode from our manufacturing partners for years. So meeting this cathode line for next quarter is nothing to affect our output. So today, we already started producing the battery and anode but the full capacity will be reached sometime in Q4.
Donovan Schafer: And what would you say is kind of the run rate capacity right now? Is it 0.5 megawatt hour, 1 megawatt hour?
Kang Sun: Not there yet. I think we — remember, we just set up this line in December. Yes. But this line certainly help us to meet our revenue plan.
Donovan Schafer: Okay. And then for 2024, I know you don’t give like a revenue guidance or anything like that, but just in kind of a general sense or at a high level with the line coming on and the capacity increasing, should we at least expect to see a revenue increase in ’24 versus ’23 and maybe even something like a run rate based on the Q4 numbers?
Sandra Wallach: So that’s a great question. So we absolutely expect to see our revenue continue to ramp up through 2024. over 2023. As Kang mentioned, we’ve got two drivers of that. One is the capacity for Fremont, that will be coming online and starting to contribute to revenue soon and getting to what we think is capacity exiting 2024 in Q4. We also have the SiCore product, which is available today, and we’ve been sampling that under a market exploration. That’s, again, not capacity constrained, but it will continue to increase as customers get through their qualification and testing.
Donovan Schafer: Kang, did you have anything to add?
Kang Sun: Yeah. 2024, certainly is going to be an exciting year for us. And we have two product families. One of the product family, we actually have significant production capacity behind us.
Donovan Schafer: Okay. And then just one last question. If I can ask about — you mentioned long lead time items for the Colorado facility. And so, I know there will be a full cost kind of estimate that comes out later and that will be down the line. But can you give us any just kind of broad sense of what kind of investments or how much funds are needed to do that type of near-term procurements for long lead time items or other things that sort of can’t wait to get a full budget put together just in the next, I don’t know, whatever this year or something like that or first half of the year, just kind of what expenses are involved in that, just the rough terms?
Sandra Wallach: So the procurement of long lead time items around mechanical and electrical and plumbing work for things like the dehumidifier, the switch gear and the transformers, those, purchase orders and down payments were placed in Q3 with some additional payments in Q4. So that’s already been taken care of. Those are the long pole in the tent. And we’re focused on permitting and finalizing the design in order to be able to share a high confidence construction and build-out budget.
Donovan Schafer: Okay. Fantastic. Thanks, guys. I’ll take rest of my questions offline.
Operator: Thank you. And our next question comes from Amit Dayal with H.C. Wainright. Please state your question.
