SES AI Corporation (SES) Eyes Recurring Revenue on Partners with Hisun New Energy Materials Partnership

SES AI Corporation (NYSE:SES) is one of the best AI stocks to buy under $20. On October 14, the company signed a term sheet to establish a joint venture with Hisun New Energy Materials. The two are joining forces to supply electrolyte materials discovered by SES AI’s Molecular Universe.

SES AI Corporation (SES) Eyes Recurring Revenue on Partners with Hisun New Energy Materials Partnership

The company has already discovered several electrolyte materials, including a low-to-medium silicon anode Li-ion electrolyte for EV applications and a Li-Metal electrolyte for drones and eVTOL applications. It has also unveiled Lithium iron phosphate (LFP) Li-ion electrolyte for ESS applications.

The joint venture marks an important milestone in validating the discovered electrolytes. The focus shifts to producing them on a commercial scale. Additionally, the joint venture is expected to create a new recurring revenue source by supplying the discovered materials to customers globally.

We expect this JV to provide us with a new source of recurring revenue and allow us to maintain a capex-light approach by leveraging Hisun’s existing manufacturing capacity to accelerate commercial supply of these AI discoveries,” said Qichao Hu, Founder and CEO of SES AI.

SES AI Corporation (NYSE:SES) develops and manufactures high-performance, artificial intelligence (AI)-enhanced lithium-metal (Li-metal) and lithium-ion (Li-ion) rechargeable batteries. The company leverages AI to improve battery performance, safety, and lifespan across a range of applications, including electric vehicles (EVs), drones, robotics, and energy storage systems.

While we acknowledge the potential of SES AI Corporation (NYSE:SES) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SES and that has 100x upside potential, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.