SES AI shares surged 5.49% following strategic collaboration to boost South Korea battery manufacturing for drones and UAM.

SES AI's shares surged 5.4945% in pre-market trading on Dec. 19, 2025, following a strategic collaboration to boost battery manufacturing capacity in South Korea for drone and urban air mobility (UAM) applications.

The partnership with Top Material, a South Korean advanced materials and engineering firm, will leverage SES AI’s AI-enhanced lithium-metal and lithium-ion battery technologies at its Chungju factory. Established in 2021 with government support, the facility has previously produced the world’s first 100Ah lithium-metal battery for automotive use and a 30Ah variant for UAM. The collaboration aims to create a secure, cost-efficient supply chain compliant with U.S. NDAA requirements, positioning SES AI as a potential supplier for defense and commercial drone markets.

Terms of the non-binding agreement, expected to formalize in Q1 2026, highlight SES AI’s focus on scaling production to meet growing demand for drones and advanced mobility. CEO Qichao Hu emphasized Top Material’s role in supporting capacity expansion, while Top Material’s CEO highlighted the partnership’s potential to challenge global markets. The move underscores SES AI’s strategy to integrate AI-driven innovation across battery development, manufacturing, and supply chain logistics, aligning with its long-term vision for electric transportation technologies.

The collaboration also emphasizes SES AI’s commitment to innovation and sustainable production methods, with a target of achieving 100% recyclability for its battery modules. This aligns with broader industry trends and regulatory pressures for greener energy storage solutions in aviation and logistics sectors.

With these advancements, SES AI is well-positioned to capitalize on the rapid growth of the drone and UAM markets, particularly in the defense and commercial logistics sectors. Investors and industry analysts are closely watching the formalization of the agreement in early 2026 for signs of broader adoption and potential scaling of production capabilities.