QuantumScape (QS) Morgan Stanley's 14th Annual Laguna Conference summary

Commercialization progress and product development

• Launched the QSE-5 solid-state lithium-metal battery cell, offering 844 Wh/L and 301 Wh/kg, with rapid charging from 10% to 80% in 12.2 minutes and strong safety performance compared to lithium-ion cells.

• Achieved 90% uptime on the new Eagle Line automated pilot line, with a goal to double output by year-end 2026 to meet growing customer demand.

• Business model focuses on capital-light licensing and development agreements with top-tier OEMs, aiming for technology transfer and higher-margin licensing revenues.

• Amended the collaboration agreement with VW PowerCo, reducing billings from $131M to $75M due to lower costs and the cancellation of the MotoE race program, reallocating resources to automotive and next-gen products.

• Expanded customer base to include four of the top 10 global OEMs, with geographic coverage across North America, Europe, and Asia.

Expansion into new verticals

• Added data center and Advanced Solutions (aerospace, defense, robotics, consumer electronics, medical devices) as new customer verticals beyond automotive.

• Data center applications target in-rack battery backup units for GPUs, offering compact, powerful, and safe solutions with potential for faster qualification and commercialization than automotive.

• Advanced Solutions vertical shipped samples to a U.S. defense prime, emphasizing energy density, safety, and elimination of graphite, which reduces reliance on Chinese supply chains.

• Early-stage discussions underway with data center architects and ODMs, with expectations for low single-digit billion-dollar opportunities by 2030.

• Qualification timelines in new verticals are expected to be faster than automotive due to less stringent lifetime requirements and faster-moving customers.

Manufacturing and operational learnings

• High-volume automated production has accelerated learning cycles, enabling rapid identification and resolution of yield and process issues.

• Equipment development is complex, requiring iterative, methodical work to adapt both conventional and proprietary tools for scale.

• Positive feedback from partners and ecosystem validates the technology platform, which integrates cell design, equipment, processes, materials, and supply chain.

• Internal focus on increasing uptime, yield, and process maturity to maximize output from existing equipment.

• Strategic partner selection and IP protection are prioritized, especially in defense and non-China supply chains.