QuantumScape (QS) investor relations material

Technology overview and innovation

• Focus on commercializing solid-state lithium-metal batteries, offering improvements in weight, volume, charge time, safety, and lifespan compared to conventional lithium-ion batteries.

• Developed a thin ceramic separator as core IP, enabling the elimination of the anode and associated costs.

• Achieved significant process improvements, including a 200x increase in separator production speed through Raptor and Cobra processes.

• Announced the QSC-5 product in 2024, with high energy density and rapid charging capabilities.

• Demonstrated technology in a Ducati race bike at the Munich Auto Show, marking a milestone in real-world application.

Commercialization and partnerships

• Entered automotive A-sample stage in 2022–2023, advancing multilayer cell development and continuous ceramic processing.

• Established a collaboration and licensing agreement with Volkswagen, including up to $131 million in milestone payments and a license for up to 85 GWh of production.

• Received first collaboration payment from Volkswagen in Q3 2023; cumulative partner payments reached $30 million over the last three quarters.

• Working with four of the top 10 global automotive OEMs, with varying stages of development and evaluation agreements.

• Inaugurated the Eagle Line, a highly automated pilot line, to support commercialization and customer sampling.

Market opportunities and product advantages

• Solid-state lithium-metal batteries offer higher energy density, faster charging, improved safety, and longer life, enabling new automotive and non-automotive applications.

• Platform is cathode-agnostic, allowing customization for cost or performance based on customer needs.

• Targeting cost parity or advantage over lithium-ion cells, with the goal to undercut costs by eliminating the anode and related processing.

• Initial market entry expected in high-performance, luxury segments, with broader applications as technology matures.

• Commercialization of automotive applications targeted before the end of the decade.