QuantumScape (QS) Investor Update summary

Technology platform and business model

• Developed a next-generation anode-free solid-state lithium metal battery with higher energy and power density, fast charging (<15 min for 10-80% SOC), improved safety, and longer cycle life.

• Transitioned to a technology licensing model, building a global ecosystem of partners for manufacturing and commercialization, including major automotive OEMs, consumer electronics, and stationary storage sectors.

• Monetization strategy includes short-term technology adaptation payments and long-term royalties from high-volume production, with recurring revenue scaling with customer production.

PowerCo partnership and financial impact

• Expanded collaboration with PowerCo, including a $130 million royalty prepayment and up to $131 million in milestone licensing payments, with a joint scale-up team and non-exclusive rights to QSE-5 platform and future technologies.

• Licensing agreement expanded from 80 GWh to 85 GWh, allowing PowerCo to sell beyond Volkswagen and access future technology.

• Initial milestones achieved, with $10 million to be invoiced in Q3, extending cash runway into 2029.

• Two distinct cash flow streams: industrialization activity and high-volume manufacturing royalties.

Customer and ecosystem expansion

• Signed a joint development agreement with a second major automotive OEM, demonstrating scalability of the licensing model.

• Entered a contract with Murata Manufacturing to accelerate technology transfer to volume manufacturing.

• Selective in customer partnerships, focusing on those committed to volume production and close collaboration.

• Partner ecosystem includes major global automotive OEMs, consumer electronics, and stationary storage sectors.