Alec Valera

Alec Valera asked about the expected cadence of testing and production for smartphones, eyewear, PCs, and drones over the next few years, as well as the corresponding capacity needs.

Answer

Raj Talluri, President and CEO, outlined the typical testing cycle involving bench-level, product-level, and system-level testing, noting that custom cell development can extend timelines. He explained that less stringent requirements or standard technologies (like smart eyewear and drones) can have much shorter cycles. Alec Valera then asked about other markets, besides drones, that can accommodate battery swelling and seem attractive for future penetration. Raj Talluri identified industrial markets with ample space, such as forklifts, as similar to drones in their ability to accommodate swelling, making them potentially attractive for future expansion.

Alec Valera asked for insight into the cadence of testing and production for smartphones, eyewear, PCs, and drones over the next few years, along with associated capacity needs. He also inquired about other markets, besides drones, that can tolerate battery swelling and present attractive future penetration opportunities.

Answer

President and CEO Dr. Raj Talluri explained the typical qualification cycle involves bench-level testing, product-level testing, custom size development, and system-level testing, which can take 1-1.5 years for a new customer. He noted that timelines are shorter for less stringent requirements or standard technology, such as smart eyewear, and for applications with shorter cycle life needs like drones. Regarding swelling-tolerant markets, Dr. Talluri identified industrial markets with large space, such as forklifts, where battery packs can be designed to accommodate some expansion, making them more forgiving than small consumer electronics.