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• The Intel for next-generation EV batteries.
• The Tesla of battery technology, but for other automakers.

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QuantumScape's major product is:

• Solid-State Lithium-Metal Battery Cells: These high-performance battery cells are designed for electric vehicles (EVs) and aim to offer superior energy density, faster charging, and enhanced safety compared to conventional lithium-ion batteries.

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QuantumScape (QS) primarily sells its solid-state battery technology to other companies (B2B), specifically major automotive manufacturers, rather than directly to individuals.

Its most significant publicly disclosed strategic partner and intended initial major customer is:

• Volkswagen Group (VOW.DE, VOW3.DE on Xetra; VWAGY on OTC Markets for its ADR)

QuantumScape has a long-standing strategic partnership and joint venture with Volkswagen, which is also a significant investor in QuantumScape. Volkswagen is expected to be the first major customer for QuantumScape's solid-state battery technology as it scales production and moves towards commercialization. While QuantumScape has stated that it is working with other undisclosed top automotive OEMs, Volkswagen Group remains its most prominent and publicly identified commercialization partner and first major intended customer.

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Dr. Siva Sivaram, President & Chief Executive Officer

Dr. Sivaram is QuantumScape's President and Chief Executive Officer. Prior to this role, he held various leadership positions at Western Digital, including President, Technology and Strategy from August 2019 to August 2023, and Executive Vice President, Silicon Technology and Manufacturing since November 2017. Before joining Western Digital in 2016, Dr. Sivaram was Executive Vice President, Memory Technology, at SanDisk. He founded Twin Creek Technologies, an American technology manufacturer specializing in solar model equipment, in 2008 and served as its CEO for five years. Earlier in his career, he held leadership roles at Matrix Semiconductor and Intel.

Kevin Hettrich, Chief Financial Officer

Mr. Hettrich has served as QuantumScape's Chief Financial Officer and Head of Business Operations since September 2018. He joined QuantumScape in January 2012, holding various positions including Vice President of Business Operations, Senior Director of Finance and Product Management, and Director of Product Management. Before joining QuantumScape, Mr. Hettrich served as a Private Equity Associate at Bain Capital, an investment firm, from September 2007 to July 2009. He also worked as a Business Analyst at McKinsey & Company, a management consulting firm, from September 2004 to July 2007.

Dr. Tim Holme, Co-founder & Chief Technology Officer

Dr. Holme is a co-founder of QuantumScape and has served as its Chief Technology Officer since January 2011. Prior to co-founding QuantumScape, he was a Research Associate at Stanford University from June 2008 to January 2011.

Dr. Luca Fasoli, Chief Operating Officer

Dr. Fasoli was appointed as QuantumScape's Chief Operating Officer, effective May 7, 2025. He brings over two decades of expertise in advanced memory and storage solutions. From 2016 to 2025, he held key leadership positions at Western Digital, including Senior Vice President of Memory Productization, where he led the global transition of 3D NAND Flash technology from development to production. Before Western Digital, Dr. Fasoli held various senior leadership roles at SanDisk, driving innovation in enterprise SSDs, embedded storage solutions, and next-generation memory systems.

Jagdeep Singh, Founder & Chairman

Mr. Singh is a co-founder of QuantumScape and currently serves as its Chairman. Prior to founding QuantumScape in 2010, he was the co-founder and CEO of Infinera Corporation from 2001 to 2009. He also co-founded and was CEO of Lightera Networks, which was acquired by CIENA Corporation, and AirSoft, which he sold for $65 million. Additionally, he was a co-founder and CEO of OnFiber, an optical telecommunications carrier acquired by Qwest Communications.

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1. Technological and Production Challenges: QuantumScape's core business success is highly dependent on its ability to perfect its solid-state battery technology and successfully transition from research and development to high-volume commercial production. The company has acknowledged that its products are not yet functioning perfectly and that it has work to do to improve reliability as it moves from prototype to commercial product. Challenges include scaling production, maintaining quality control, achieving cost efficiencies, and overcoming unforeseen technological limitations or reliability issues. The company is still pre-revenue and its investment case hinges on scaling production, controlling costs, and achieving promised battery performance.
2. Significant Financial Losses and Need for Additional Funding: QuantumScape has incurred substantial operating and net losses since its inception and expects to continue incurring operating losses until at least the time significant production of its batteries begins, which is not anticipated in the near future. The company has high operating expenses due to its aggressive development and expansion strategies, leading to a burn rate that raises concerns about its ability to sustain operations and potentially run out of money before it can launch its EV batteries or generate substantial revenue.
3. Intense Competition: The battery industry is highly competitive, with numerous established companies and startups vying for market share in the electric vehicle (EV) sector. QuantumScape faces competition from these entities that are also developing advanced battery technologies. Rapid technological advancements by competitors and potential new entrants could erode QuantumScape's competitive position if its technology does not achieve widespread adoption or if rivals close the technological gap.

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• Accelerated commercialization by competing solid-state battery developers: Major automotive OEMs (e.g., Toyota, which has announced plans for solid-state vehicles by the mid-2020s) and large battery manufacturers (e.g., CATL, Samsung SDI, LG Energy Solution), as well as other well-funded startups (e.g., Solid Power, Factorial Energy), are heavily investing in and developing their own solid-state or semi-solid-state battery technologies. If any of these competitors achieve mass production with superior performance metrics (e.g., energy density, power, cycle life), lower costs, or faster timelines than QuantumScape, or secure significant OEM commitments ahead of QuantumScape, it poses a direct competitive threat by potentially capturing market share and limiting QuantumScape's strategic partnerships.
• Significant and rapid advancements in conventional lithium-ion battery technology: The continuous improvement in traditional lithium-ion batteries, including innovations like silicon anodes, advanced cathode materials (e.g., high-nickel, manganese-rich, or improved LFP), and evolving cell and pack designs, is steadily increasing energy density, charging speeds, and cycle life, while simultaneously driving down costs. If these advancements continue to narrow the performance gap with solid-state solutions at a substantially lower cost and with proven scalability, it could reduce the urgency for automotive OEMs to adopt more complex and potentially more expensive solid-state solutions, thereby limiting the market opportunity and adoption rate for QuantumScape's technology.

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Addressable Markets for QuantumScape's Products:

• Global Solid-State Battery Market: The market for solid-state batteries, which QuantumScape's technology addresses directly, was estimated at varying values in 2024:
  • USD 1.18 billion in 2024 and is projected to reach USD 15.07 billion by 2030, growing at a compound annual growth rate (CAGR) of 56.6% from 2025 to 2030.
  • USD 2.04 billion in 2024 and is projected to grow to USD 33.38 billion by 2033, at a CAGR of 36.4% during the forecast period (2025-2033).
  • USD 1.1 billion in 2024 and is set to grow at a CAGR of 31.1% from 2025 to 2034.
  • USD 886.1 million in 2024 and is predicted to reach USD 24.34 billion by 2034, at a 40.4% CAGR during the forecast period (2025-2034).
  The increasing demand for electric vehicles is a primary catalyst for the growth of the solid-state battery market, as these batteries offer higher energy density and safety compared to traditional lithium-ion options.
• Global Electric Vehicle (EV) Battery Market: QuantumScape's solid-state batteries are designed to disrupt the broader EV battery market. This market was valued at:
  • USD 91.93 billion in 2024 and is expected to reach USD 251.33 billion by 2035, at a CAGR of 9.6% during the forecast period (2024-2035).
  • USD 61.31 billion in 2024 and is projected to reach USD 198.86 billion by 2030, growing at a CAGR of 22.2% from 2025 to 2030.
  • USD 76.59 billion in 2024 and is predicted to increase to approximately USD 739.31 billion by 2034, expanding at a CAGR of 25.95% from 2025 to 2034.

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QuantumScape (NYSE: QS) is positioning itself for future revenue growth over the next 2-3 years through several key drivers, primarily centered on the commercialization and scaling of its solid-state battery technology and strategic partnerships.

1. Commercialization and Production of QSE-5 Cells: A primary driver of future revenue will be the successful transition from prototype to commercial production and shipment of its QSE-5 cells. QuantumScape has been producing low volumes of B0 samples and began shipping them for automotive customer testing in Q3 2024. The company's 2025 goals include shipping initial volumes of QSE-5 B1 cells to support the demonstration phase of a launch program with a prospective customer targeted for 2026. The QSE-5 product is designed to offer industry-leading performance, including an energy density of 844 watt-hours per liter and fast charging capabilities (10% to 80% in just over 12 minutes).

2. Strategic Partnership and Licensing Agreement with PowerCo: The collaboration with PowerCo, the battery manufacturing arm of the Volkswagen Group, is a cornerstone of QuantumScape's commercial licensing strategy. This partnership involves intensive collaboration to industrialize the QSE-5 technology platform to a gigawatt-hour scale. Upon satisfactory technical progress, QuantumScape will grant PowerCo a license to mass produce battery cells in exchange for royalty payments, including an initial $130 million prepayment. An expanded agreement in July 2025 further secured up to $131 million in additional funding over two years, contingent on meeting technical and operational milestones.

3. Advancements in Manufacturing Processes and Efficiency (Cobra Separator): The implementation and scaling of advanced manufacturing processes, particularly the Cobra separator production process, are crucial for increasing throughput and reducing costs. The Cobra process is reportedly 25 times faster in heat treatment than its predecessor, Raptor, and requires less factory space, enabling higher-volume B1 sample production in 2025. This efficiency gain is expected to facilitate the transition to gigafactory-scale output by early 2027 and is integral to a capital-light business model focused on licensing and development.

4. Expansion of Commercial Engagements and Ecosystem: Beyond PowerCo, QuantumScape is expanding its commercial engagements and building an ecosystem of partners. This includes announced collaborations with Murata Manufacturing and Corning Incorporated to accelerate the industrialization of its solid-state battery technology and improve ceramic separator technology. These partnerships are expected to aid in scaling ceramic separator production and broaden market opportunities, potentially leading to additional licensing agreements, joint development payments, and royalties from new customers in the automotive and other markets, such as grid storage or aviation.

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Share Repurchases

• QuantumScape has not engaged in significant share repurchases, with the buyback yield reported at -2.8% for the latest twelve months and averaging -3.8% from fiscal years 2020 to 2024.

Share Issuance

• QuantumScape became a publicly traded company in 2020 through a business combination with a special purpose acquisition company.
• The number of outstanding shares has consistently increased, rising from 0.252 billion at the end of 2020 to approximately 0.589 billion by September 30, 2025, representing a 15.67% year-over-year increase.
• In Q3 2025, QuantumScape raised $263.5 million through an at-the-market equity program, contributing to the extension of its cash runway through 2029.

Inbound Investments

• Volkswagen Group has been a key strategic investor, making an additional investment of $200 million between 2020 and 2021 to advance solid-state battery technology development, following prior investments of over $100 million.
• By July 2024, Volkswagen held a 17% stake in QuantumScape, valued at $459 million.
• In Q2 2025, QuantumScape secured $131 million in milestone funding as part of an expanded partnership deal with PowerCo, Volkswagen's battery manufacturing arm.

Outbound Investments

• No significant outbound investments or acquisitions by QuantumScape have been reported, consistent with its stated "capital-light" business model focused on licensing and development.

Capital Expenditures

• Capital expenditures in Q3 2025 were $9.6 million, with the full-year 2025 forecast trimmed to $30-$40 million, reflecting efficiency gains in the Cobra separator process.
• In Q2 2025, capital expenditures were $8.3 million, with the full-year guidance narrowed to $45 million to $65 million, primarily supporting equipment and facility upgrades for QSE-5B pilot production.
• For Q1 2025, capital expenditures amounted to $5.8 million, and the initial full-year guidance was set between $45 million and $75 million.