QuantumScape (QS) DbAccess IAA Cars Conference summary

Technology and product innovation

• Introduced a next-generation solid-state, anode-free lithium metal battery with a unique ceramic separator, enabling high energy and power density, safety, and affordability without traditional compromises.

• Demonstrated the technology in a high-performance Ducati motorcycle, marking the first public use of their solid-state battery in a mobility vehicle.

• The ceramic separator, developed through the Cobra process, is central to scalability and safety, allowing for high-volume production and preventing dendrite growth.

• The platform is cathode-agnostic, enabling flexibility for different market segments and future technological improvements.

• Ongoing innovation is planned, with new breakthroughs expected every 18 months to enhance energy density, power, and other features.

Strategic partnerships and business model

• Maintains a close, iterative partnership with Volkswagen Group and PowerCo, including technology co-development and joint industrialization efforts.

• Signed a $133 million contract with VW PowerCo, including engineering payments and royalty licensing, with up to 85 GWh of production capacity planned.

• Adopted a capital-light, licensing-focused business model, leveraging manufacturing partners like Murata for ceramic production and focusing on high-margin licensing income.

• Plans to replicate the VW partnership model with additional OEMs, aiming for substantial cash inflows from collaboration and royalty streams.

• Ended last quarter with approximately $800 million in liquidity, supporting long-term execution and reducing reliance on capital markets.

Market outlook and competitive landscape

• Sees secular, long-term growth in electric vehicle demand, with initial focus on premium vehicles and plans to expand to mass market as scale increases.

• Estimates the North America and Europe automotive battery market will grow from 380 GWh in 2025 to 6x that over 5–10 years.

• Differentiates from competitors by offering a technology that requires only standard pressure, is safer, and is more scalable than other solid-state solutions.

• Maintains a strong intellectual property moat and emphasizes systematic, transparent execution to stay ahead of larger, well-funded competitors.

• Focus remains on automotive, but other markets like defense and data centers are being considered for future expansion.