QuantumScape (QS) investor relations material

Technology and product overview

• Solid-state lithium-metal batteries offer advantages in size, weight, charging speed, safety, and cost at scale, enabled by a unique ceramic separator and elimination of the anode host material.

• The QSE-5 cell, announced in 2024, delivers 800 Wh/L, over 300 Wh/kg, and charges from 10%-80% in about 12 minutes, targeting electric vehicles.

• The technology platform is protected by over 300 patents and trade secrets, with significant barriers to replication.

• The company’s capital-light model leverages licensing and partnerships, avoiding large-scale CapEx.

• The ceramic separator and anode-free design provide energy density, safety, and supply chain advantages, including reduced reliance on graphite.

Commercialization, partnerships, and business model

• Long-term collaboration with Volkswagen includes a licensing agreement up to 85 GWh, with a $130 million prepay tied to technical milestones.

• Honda is a newly named partner, validating the technology through hands-on testing and entering a multi-year R&D agreement.

• Two additional top 10 OEMs are engaged, with a focus on geographic diversity and a large addressable market.

• The business model emphasizes high-margin licensing and near-term cash flow from development, sampling, and demos.

• Partnerships with Corning and Murata support gigawatt-hour scale separator production, leveraging their expertise for cost reduction.

Manufacturing and scaling

• The Eagle Line, a highly automated pilot line, is central to scaling, enabling higher sampling volumes and process industrialization.

• Key manufacturing metrics include uptime (>90%), yield, and throughput, with a goal to double Eagle Line output over the year.

• Process innovations like the Raptor and Cobra ceramic tools have achieved order-of-magnitude improvements in separator production speed.

• The blueprint for scaling is demonstrated to partners through transparent pilot line operations and collaboration with leading equipment suppliers.

• The process eliminates the anode and simplifies cell formation, reducing cost and complexity compared to conventional lithium-ion plants.