Why this battery company is pivoting to AI | MIT Technology Review

You need to enable JavaScript to view this site.

Skip to ContentMIT Technology ReviewFeaturedTopicsNewslettersEventsAudioMIT Technology ReviewFeaturedTopicsNewslettersEventsAudioClimate change and energyWhy this battery company is pivoting to AISES AI is hoping for a new life after more than a decade in the battery manufacturing business.
By Casey Crownhartarchive pageMarch 25, 2026Courtesy of SES AI Qichao Hu doesn’t mince words about how he sees the state of the battery industry. “Almost every Western battery company has either died or is going to die. It’s kind of the reality,” he says. Hu is the CEO of SES AI, a Massachusetts-based battery company. It once had aims of making huge amounts of advanced lithium metal batteries for major industries like electric vehicles—but now the company is placing its bets on AI materials discovery. Hu sees the pivot as an essential one. “It’s just not possible for a Western company to build a sustainable business,” he says. The company is still making some batteries, but only for smaller markets like drones rather than those that would require higher volumes, like EVs. The new focus is the company’s battery materials discovery platform—which it can either license to other battery companies or use to develop materials to sell.  Some leading US EV battery companies have folded in recent months, and others, like SES AI, are making dramatic changes in strategy. This shift in who’s building batteries and where they’re doing it could shape the future geopolitics of energy. 
The work that would eventually evolve into SES AI began at MIT, where Hu completed his graduate research. His battery work was aimed at applications in oil and gas exploration. The industry uses sensors that go deep underground, where temperatures can top 120 °C (about 250 °F). The team hoped to develop a battery that could withstand those high temperatures and last longer on a single charge.  The chosen technology was a solid polymer lithium metal battery. These cells use lithium metal for their anode and a polymer for their electrolyte (the material that ions move through in a battery cell). Together, these components can increase the energy density of a cell significantly, relative to the lithium-ion batteries that are common in personal devices and EVs today. (Lithium-ion batteries generally use a graphite material for their anode and a liquid for the electrolyte.)
That solid-state battery technology became the foundation of Solid Energy, a startup Hu founded that spun out from MIT in 2012 and raised its first private investment in 2013. Related StoryWhat’s next for EV batteries in 2026Read next The team eventually realized that underground oil exploration was a small market, so after several years of operation they began to focus on electric vehicles, which were starting to come into the mainstream. After the team tweaked the chemistry to work better at lower temperatures, the company built its first pilot facility in Massachusetts and eventually another facility in Shanghai. By 2021, the battery industry was booming, Hu recalls, and EVs were the hottest industry to be in. There was a ton of interest in next-generation battery technology from major automakers at the time, and Solid Energy started developing technology with GM, Hyundai, and Honda. Larger vehicles, like SUVs and trucks, seemed like a good fit for next-generation batteries, Hu says. Massive vehicles like the ones Americans like to drive would need lighter batteries so they could have a reasonable range without being prohibitively heavy. The company also shifted its chemistry focus, and in 2022 it announced a battery with a silicon anode rather than a lithium metal one. That shift could help make the battery easier to manufacture. Since then, growth in the EV market has slowed, at least in the US, partly because of major pullbacks in funding from the Trump administration. EV tax credits for drivers, a key piece of support pushing Americans toward electric options, ended in late 2025. With the market for large electric cars in trouble, Hu says, “now we have to look at every market.”   The AI materials discovery platform on which it’s pinning many of its hopes is called Molecular Universe. The company seeks not only to provide its software to other battery companies but also to identify new battery materials and either license them or sell them to those companies. COURTESY OF SES AI The platform has already identified six new electrolyte materials, according to the company. Hu says one is an additive that could help improve the lifetime of batteries with silicon anodes. 

One of the challenges with silicon anodes is that they tend to swell a lot during use, which can cause physical damage and prevent efficient charging and discharging. To address the problem, the industry typically uses a material called fluoroethylene carbonate (FEC), which can help form an elastic film on the anode so the battery can still charge effectively. That additive can degrade at high temperatures, though, producing gases that can harm a battery’s lifetime. The SES platform identified a compound that works like FEC but doesn’t release those gases. The company’s long history and deep battery knowledge could help make its platform a useful tool, Hu says. He sees the actual model as less crucial than SES’s domain expertise and data from years of making and testing batteries.  “By not actually making the physical battery, we’re actually able to scale and then generate revenue faster,” he says.  But some experts are skeptical about the near-term prospects for AI materials discovery to revive the industry. “New materials development, as much as we thought that was what people wanted (and, frankly, it should be what the cell makers want)—I don't know that that seems to be the real linchpin of the battery industry’s progress,” says Kara Rodby, a technical principal at Volta Energy Technologies, a venture capital firm that focuses on the energy storage industry. Investors are pulling back, and a slowdown in public support is making things difficult for some parts of the battery industry, she adds: “I don’t know that the ability to discover any new material is going to unlock anything new for the battery industry at this point in time.” by Casey CrownhartShareShare story on linkedinShare story on facebookShare story on emailPopularA “QuitGPT” campaign is urging people to cancel their ChatGPT subscriptionsMichelle KimMoltbook was peak AI theaterWill Douglas HeavenHow Pokémon Go is giving delivery robots an inch-perfect view of the worldWill Douglas HeavenMeet the Vitalists: the hardcore longevity enthusiasts who believe death is “wrong”Jessica HamzelouDeep DiveClimate change and energyWhat’s next for EV batteries in 2026Expect to see new chemistries hitting the roads, a shifting policy landscape, and a renewed focus on cost and performance.
By Casey Crownhartarchive pageThis startup claims it can stop lightning and prevent catastrophic wildfiresBut researchers aren’t as confident as the company.
By James Templearchive pageThis company claims a battery breakthrough. Now they need to prove it.Let’s talk about Donut Lab’s solid-state batteries.
By Casey Crownhartarchive pageMicrobes could extract the metal needed for cleantechAmid rising demand, miners are turning to biotech firms to help them squeeze more metal out of aging mines.
By Matt Bloisarchive pageStay connectedIllustration by Rose WongGet the latest updates fromMIT Technology ReviewDiscover special offers, top stories,
upcoming events, and more.Enter your emailPrivacy PolicyThank you for submitting your email!Explore more newslettersIt looks like something went wrong.
We’re having trouble saving your preferences.
Try refreshing this page and updating them one
more time. If you continue to get this message,
reach out to us at
customer-service@technologyreview.com with a list of newsletters you’d like to receive.The latest iteration of a legacyFounded at the Massachusetts Institute of Technology in 1899, MIT Technology Review is a world-renowned, independent media company whose insight, analysis, reviews, interviews and live events explain the newest technologies and their commercial, social and political impact.READ ABOUT OUR HISTORYAdvertise with MIT Technology ReviewElevate your brand to the forefront of conversation around emerging technologies that are radically transforming business. From event sponsorships to custom content to visually arresting video storytelling, advertising with MIT Technology Review creates opportunities for your brand to resonate with an unmatched audience of technology and business elite.ADVERTISE WITH US© 2026 MIT Technology ReviewAboutAbout usCareersCustom contentAdvertise with usInternational EditionsRepublishingMIT Alumni NewsHelpHelp & FAQMy subscriptionEditorial guidelinesPrivacy policyTerms of ServiceWrite for usContact uslinkedin opens in a new windowinstagram opens in a new windowreddit opens in a new windowfacebook opens in a new windowrss opens in a new window

SES AI, founded by Qichao Hu, is undergoing a significant strategic pivot away from direct battery manufacturing towards a focus on AI-driven materials discovery. Hu, who earned his graduate research at MIT, initially aimed to produce advanced lithium metal batteries for sectors like electric vehicles, recognizing the challenges faced by Western battery companies, specifically the high rate of failure within the industry. The company’s early work, stemming from its origins at MIT, centered on solid-polymer lithium metal batteries designed for demanding environments like oil and gas exploration, where temperatures can reach 120°C (250°F).

The company’s trajectory shifted as markets evolved, moving from targeted applications—such as EV development with GM, Hyundai, and Honda—to a broader focus on increasing battery production volumes. A conscious decision in 2022 involved transitioning to a silicon anode battery chemistry, intended to simplify manufacturing, though market conditions following the end of US EV tax credits impacted this strategy. Hu acknowledges the need to adapt to evolving market dynamics, stating “now we have to look at every market.”

Central to SES AI's current strategy is the Molecular Universe platform, an AI-powered system designed for identifying and licensing novel battery materials. This platform has already yielded six identified electrolyte materials, including an additive aimed at improving the longevity of batteries utilizing silicon anodes—addressing a key challenge associated with this anode chemistry. The company’s ability to avoid the physical battery manufacturing process is intended to accelerate revenue generation and scalability.

However, the approach faces skepticism from some industry experts, such as Kara Rodby of Volta Energy Technologies, who questions whether materials discovery will be the truly transformative force within the battery industry, citing investor pullback and policy changes as inhibiting factors. Rodby notes that the core value of the platform lies in SES AI's established battery domain expertise and accompanying data, rather than the software itself. Hu emphasizes that the platform's strength is generated by their years of practical battery experience and testing data, arguing that the actual model is secondary to the accumulated knowledge. SES AI's hope is to license its platform to other battery companies or to commercially develop materials identified through it. The company’s roots in MIT research and its initial focus on high-temperature applications provide a strong foundation for this new venture.