Qichao Hu: Yes, yes. So very good point. And then, for example, on the anode side, and then I was just at a conference with Applied Materials. So Applied Materials, live and these U.S.-based lithium anode companies are building up plants in the U.S. Some of them are in North Carolina, some are in other states as part of the IRA initiative. And then going forward, we definitely plan to purchase and qualify from U.S.-based vendors. And then also in terms of lithium salt, we are working with a few partners to potentially set up facilities also in the U.S. So we can produce this salt for our high concentration solvent installed electrolyte. And so the anode and the salt are two really key parameters to us. And then also several of our capital vendors are already setting up plans.
For example, in Canada, North America to supply the cathode. And then once we are towards the later stage of B-sample, then we will sit down with our EV OEMs and potential eVTOL OEMs to discuss where in North America to set up a plant for the battery cells.
Shawn Severson: Great. Thanks for that, Qichao. Congratulations on the progress.
Qichao Hu: Yes. Thank you, Shawn.
Operator: Our next question comes from Jeff Grampp from Alliance Global Partners. Jeff, your line is now open. Please go ahead.
Jeff Grampp: Good morning. A question on the transition to B-samples with the auto OEMs. Is there a way to assess how far behind? It sounds like you have kind of one kind of a front-runner that you’re very close with. Is there a way to assess kind of how far out the other two are relative to the first one? And is having one, assuming you get across the finish line, getting one to B-sample, does that kind of give you guys an ability to nudge the others since there’s some third-party validation? Or is that not really relevant as you guys have — as you guys see OEM seeing it?
Qichao Hu: Yes. Good question. So actually, the spec’s transition from A to B for all the thee OEMs and actually all OEMs around the world are quite similar the performance and the safety. So working on transition to B with one of them because the testing and the type of studies and testing that we’ve done is the most extensive. And I would say the other two probably in terms of the gap, probably can be measured in months, just different OEMs. In the past, a year to two years during the A-sample development process, we had different timelines because we had different focus then for facilities, for a line setup, but the progress is different. But then I would say the overall platform, the core technical progress that we make for safety and performance, that’s very transferable.
And different OEMs may have different internal processes for getting to the next phase. But I’ll say, also they’re measured in months. But — that’s more on the contract level. But in terms of core technical progress, we made progress with one OEM, and then we get to B-sample. And that progress can be transferable to the other OEMs.
Jeff Grampp: Great. That’s very helpful. And for my follow-up, more of a macro question for you guys. But obviously, there’s been some articles in the industry talk about some slowing EV sales and some building of inventories. I think a lot of that relates to cost as well as maybe some range anxiety, which are obviously things you guys can address pretty impactfully. So I’m wondering if you guys are maybe seeing any different level of urgency from your JDA partners to move a solution like years forward? Or is it pretty similar from what you guys have seen historically?
Qichao Hu: Yes. So the OEMs have sort of modified their focus, remember from range anxiety to maybe safety to maybe cost. But then in terms of technology platform, the OEMs have not really changed their commitment because, for example, lithium metal, it came in one range. But then it can also mean lower cost because a longer-range battery, if you keep the range the same, then the battery is actually smaller. So you pack — the packaging can be actually cheaper. So lithium metal can actually be designed so that it can mean longer range or lower cost to fit the OEM’s target.
