Risk Factors Update Summary

• Developing new high-volume manufacturing lines to meet cell quality, yield, and capacity requirements. This could impact scaling production.
• Added risk related to environmental laws on wastewater, expanding beyond air emissions. This change might result in increased compliance costs.
• Committing between $75.0 million and $100.0 million to achieve up to 500 MWh per year of manufacturing capacity. This significant investment is crucial for growth.
• Mentioned the Uyghur Forced Labor Prevention Act effective June 2022, impacting imports. This could lead to supply chain disruptions.
• Entering into a lease agreement for premises of approximately 774,000 square feet to establish a GWh-scale manufacturing facility. This expansion is essential for future operations.
• Highlighted risks associated with sourcing battery materials primarily from China, potential supply constraints. This may impact product manufacturing.
• Disclosed provisions in bylaws and Delaware law that could deter undesirable acquisitions. This could affect corporate governance.
• Noted the potential dilution from sales of common stock to BRPC II under the Sales Agreement. This may impact shareholder value.
• Discussed the issuance of additional shares of common stock and preferred stock, potentially diluting existing shareholders.