QuantumScape (QS) Baird Global Industrial Conference summary

Company overview and technology

• Focuses on solid-state lithium metal batteries, targeting improvements in energy density, charge time, life, safety, and cost.

• Achieved a milestone by powering a Ducati race bike with its QSE-5 cells at the Munich Auto Show.

• QSE-5 cell specs: 844 Wh/L, 301 Wh/kg, charges from 10% to 80% in 12.2 minutes.

• Eliminates the anode, reducing cost, weight, and improving safety by removing flammable materials.

• Developed proprietary ceramic separator technology, requiring advanced engineering and materials.

Manufacturing innovation and partnerships

• Transitioned from batch to continuous ceramic processing, achieving major speed improvements with Raptor and Cobra processes.

• Cobra process delivers a 25x speed improvement over Raptor, totaling 200x over industry standard.

• Partnerships with Murata and Corning leverage their ceramics expertise for separator production.

• Manufacturing model is capital-light, focusing on technology licensing and pilot line demonstration.

• Partners like VW PowerCo and ceramics suppliers are key to scaling production.

Licensing strategy and commercial agreements

• Shifted to a technology licensing model, with VW PowerCo as the anchor partner.

• VW license expanded from 80 to 85 GWh, with the last 5 GWh available for non-automotive use.

• Up to $261 million in pre-commercialization payments from VW, including $131 million for development and $130 million royalty prepayment.

• Licensing deals are non-exclusive, aiming to replicate the VW template with other OEMs.

• Revenue recognition for VW payments is initially as a liability, moving to equity upon extinguishment.