Amprius (AMPX) Q2 2025: SICOR Shipments Up 450%, Unlocking Positive Gross Margin Inflection

2025-08-07 | By EarningsIQ Research

Amprius delivered a pivotal Q2, as SICOR, its high-performance silicon anode battery, drove a 450% YoY shipment surge and enabled the company’s first positive gross margin. With demand accelerating across drones and light electric vehicles, Amprius is leveraging contract manufacturing to scale globally while maintaining capital discipline. Policy tailwinds and diversified customer wins signal a shift from qualification to revenue ramp, setting up sequential growth into the second half.

Summary

• SICOR-Driven Margin Turn: Proprietary silicon anode batteries delivered a positive gross margin inflection, validating the business model.
• Global Demand Diversifies: International customers and drone sector adoption broadened the revenue base beyond the U.S. market.
• Production Scale Leverage: Contract manufacturing expansion positions Amprius for sequential revenue growth and operational flexibility.

Performance Analysis

Amprius’ Q2 performance marks a structural transition from technology validation to commercial scaling. Revenue soared to $15.1 million, a 350% year-over-year increase, with over 90% of Q2 revenue sourced from the aviation sector, primarily drones. The company shipped batteries to 93 customers, 43 of which were new, and increased its international revenue mix to 86%, up from 60% a year ago. Notably, SICOR, Amprius’ proprietary silicon anode platform, was the main engine of growth, accounting for the majority of shipments and margin improvement.

Gross margin turned positive at 9%, a sharp reversal from negative 195% in the prior year quarter, as SICOR’s cost structure and premium pricing offset higher operating expenses. Operating expenses rose 12% sequentially to $8.2 million, reflecting targeted investments in sales and R&D, but the company maintained a lean headcount of 97 full-time employees. Cash burn moderated, and Amprius exited the quarter with $54.2 million in cash and no debt, further supported by an at-market sales agreement with $46.7 million capacity remaining.

• Customer Pipeline Depth: Over 320 customers are in various stages of qualification, with a growing share moving into production orders.
• Contract Manufacturing Model: The South Korea partnership and ongoing supplier diversification provide geographic resilience and scalable capacity.
• Policy and Defense Catalysts: Recent U.S. government directives and a $10.5 million Defense Innovation Unit contract are accelerating domestic production and compliance.

With SICOR shipments scaling and a diversified, global customer base, Amprius is positioned for sequential revenue growth and continued margin expansion as it moves deeper into the commercialization phase.

Executive Commentary

Strategic Positioning

1. SICOR Platform as a Competitive Moat

SICOR, Amprius’ silicon anode battery platform, is delivering record-setting energy density and rapid charge rates, with 450 Wh/kg and 10C power capability. This performance edge is translating into tangible customer wins, especially in mission-critical drone applications where endurance and payload are decisive.

2. Contract Manufacturing Model Fuels Scale

Rather than building capital-intensive factories, Amprius is leveraging contract manufacturing in South Korea and China, enabling rapid capacity expansion with minimal incremental capital. This model provides geographic flexibility, supports NDAA-compliant (U.S. government approved) supply, and de-risks capacity investments amid evolving policy and demand.

3. Policy and Defense Tailwinds Accelerate Adoption

U.S. executive orders and Department of Defense directives are fast-tracking drone adoption and domestic sourcing, directly benefiting Amprius. The $10.5 million Defense Innovation Unit contract will expand U.S. pilot line capacity and electrode manufacturing, positioning the company as a strategic supplier for military and critical infrastructure applications.

4. Customer Diversification and Global Reach

Revenue is increasingly diversified, with 86% from outside the U.S. and a growing mix of commercial and defense customers. Participation in Amazon’s Climate Tech Accelerator and new partnerships in Europe and Asia are expanding end-market opportunities beyond aviation, into industrial and light electric vehicle (LEV) sectors.

5. Capital Efficiency and Financial Discipline

Amprius maintains a lean cost structure and robust liquidity, balancing R&D investments with capital-light scaling. The company is deferring large U.S. factory investments until demand visibility, government incentives, and tariffs align, preserving flexibility and cash runway.

Key Considerations

Q2 marks Amprius’ inflection from R&D-driven story to commercial execution, with SICOR’s performance and contract manufacturing scale unlocking a new phase of growth. The company’s ability to balance premium pricing, cost discipline, and rapid customer onboarding is central to its near-term trajectory.

Key Considerations:

• Premium Product, Premium Pricing: SICOR’s energy density and performance allow Amprius to command higher prices, especially in defense and industrial drone markets where battery cost is a small portion of total system value.
• Supply Chain Flexibility: The South Korean manufacturing partnership is already ramping, providing customers with non-China sourcing and supporting regional supply chain requirements.
• Operating Leverage Emergence: Lean headcount and contract manufacturing enable margin expansion as volume scales, with operating expenses expected to remain steady in the near term.
• Shorter LEV Design Cycles: Light electric vehicle customers in Europe and Asia offer near-term revenue upside due to rapid qualification and design-in cycles.
• Policy-Driven Demand Visibility: U.S. government incentives, defense contracts, and regulatory shifts are accelerating both customer adoption and the need for domestic production.

Risks

Execution risk remains as Amprius transitions from pilot to scaled production, with possible operational bottlenecks or quality control challenges as contract manufacturing ramps. Customer concentration and lumpy order cycles, especially in defense and LEV segments, could drive quarterly volatility. Policy and tariff changes, as well as evolving global supply chain dynamics, may impact cost structure and market access, particularly if U.S.-China relations shift.

Forward Outlook

For Q3 2025, Amprius expects:

• Sequential revenue growth as additional customers move from qualification to production orders
• Gross margin to remain positive, with some variability based on product and customer mix

For full-year 2025, management maintained its focus on scaling SICOR shipments, expanding contract manufacturing, and leveraging policy tailwinds:

• CapEx will be targeted at Fremont pilot line expansion, partially funded by the $10.5 million DIU contract

Management highlighted strong customer engagement, ongoing qualification conversions, and a robust cash runway as drivers of continued growth momentum.

• Pipeline depth and design win velocity are key watchpoints
• Operating expenses expected to remain steady, supporting margin leverage as volumes scale

Takeaways

Amprius’ Q2 results validate its technology and business model, with SICOR shipments driving both revenue and margin inflection. Contract manufacturing and policy tailwinds position the company for global scale, while disciplined capital allocation preserves flexibility and runway.

• SICOR Platform Unlocks Margin: Positive gross margin and premium pricing confirm commercial viability and competitive differentiation.
• Manufacturing Scale and Diversification: South Korea partnership and ongoing supplier expansion reduce geopolitical and supply chain risk.
• Policy and Defense Catalysts: U.S. government actions are accelerating demand and providing funding for domestic manufacturing expansion.
• Watch for Sequential Revenue Growth: Conversion of customer qualifications and ramping contract manufacturing will drive near-term results.

Conclusion

Amprius’ Q2 marks a structural turning point, as SICOR’s commercial traction and margin profile validate the company’s technology and contract manufacturing model. With strong demand signals, policy catalysts, and disciplined execution, Amprius is positioned to scale as a differentiated battery supplier for aviation, LEV, and beyond.

Industry Read-Through

Amprius’ results provide a clear read-through for the broader battery and electrification landscape: High-performance, application-specific batteries are commanding premium pricing, especially in sectors where endurance and payload are critical. Contract manufacturing is emerging as a capital-efficient alternative to greenfield factories, offering speed and flexibility as policy and supply chain risks mount. Policy-driven demand, especially in defense and critical infrastructure, is accelerating adoption cycles and creating new entry points for innovative suppliers, signaling that the battery market is shifting from commodity to differentiated solutions. Peers focused solely on automotive or legacy chemistries risk margin compression and slower adoption, while those with proven, capital-light models and policy alignment are best positioned for the next growth phase.

AMPX Energy Batteries Electrification Contract Manufacturing Defense SICOR Gross Margin