Amprius Technologies (NYSE:AMPX) stock closed higher by 86% today following its successful transition from a special purpose acquisition company (SPAC) last week. Amprius focuses on using patented silicon nanowire anodes to improve the density of its lithium-ion batteries. Using its patented technology, the company produces batteries that provide “up to 100% improvement” over traditional lithium-ion batteries.
In addition to its tech, Amprius has existing contracts with several high-profile customers, such as the U.S. Army and Airbus (OTCMKTS:EADSY). The company is active in the aerospace, electric vehicles (EVs) and wearables industries and initiated commercial production back in 2018.
CEO Dr. Kang Sun added the following about the company’s SPAC deal:
“This transaction provides Amprius with capital to use in scaling production capabilities to meet the significant demand for our transformational silicon nanowire anode technology.”
Amprius’ successful de-SPAC provided it with $87 million in gross proceeds. The company will use the funds to advance the construction of its gigawatt hour-scale manufacturing facility.
AMPX Stock Soars Higher on Battery Hopes
Since July, Amprius has completed purchase agreements with two companies.
First, on July 14, Amprius announced a three-year component purchase agreement with Teledyne FLIR, a leading player in unmanned aerial systems (UAS) and defense solutions. Using Amprius’ battery cells, Teledyne will be able to extend the power and range of its UAS and cut down charging times. The cells will offer “nearly double the energy density in the same volumetric space with the ability to maintain balanced high energy at high power.” By 2025, the total battery market for UAS is expected to expand to $38 billion. Amprius believes it is well-positioned to take advantage of this market.
Last month, Amprius also signed a purchase agreement with Centrotherm. The company will purchase photovoltaic cell production equipment from Centrotherm to help manufacture its silicon nanowire anode. Furthermore, the purchase consists of “proven equipment” that has been used to make commodity solar cells.
That all said, the price action of AMPX stock has been anything but stable. Shares carry a 52-week high of $26.01 and a 52-week low of $5.64. Apparently, investors are unsure of how to value the company. As a new publicly traded company, AMPX currently has zero analyst coverage as well.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.