QuantumScape QSE-5 B Sample has shipped to automotive customer for testing and validation. QSE-5 is a solid state battery with the following characteristics:
844 Wh/L volumetric density, at 100% SoC
- Tesla Model S Plaid 2021 with 18650 cell gets about 700 Wh/L
- Tesla Model Y 2022 with 4680 cell gets about 630 Wh/L
- Tesla Model 3 2017 with 2170 ~710 Wh/L
301 Wh/kg mass density
It is flat, 84.5mm x 65.mm x4.6mm
Mass 71.8g
Voltage: 3.84 V
Operating Pressure < 3.4 atm
Cell Energy C/5, 25 C: 21.6 Wh
Charges from 10% to 80% under 15 minutes at 45 C
- Tesla Model S Plaid 2021 18650 takes 30 mins
- Tesla Model Y 2022 4680 takes 26 mins
- Tesla Model 3 2017 2170 takes 26 mins
Lower temperature performance up to -30C
At room temperature 25C, can discharge up to 10C rate.
Pass safety test below Hazard Level 4.
Raptor, their first production process will transition to Cobra, the next higher volume process will be in place 2025. The heat treatment equipment for Cobra will be ready by 2024.
In July 2024, QuantumScape signed agreement with PowerCo to allow give them license to manufacture solid state battery. The non-exclusive license allows PowerCo up to 40 gigawatt hours each year. There is option to expand to 80 GWh. That capacity can power one million vehicles. The collaboration combines the strength of both companies to speed up the development. PowerCo will contribute skilled employees. If technical progress is met, QuantumScape will grant license to PowerCo and QuantumScape will receive royalty. There’s a $130M prepayment. This has also released $134M from prior PowerCo agreement. QuantumScape believe they have cash runway into 2028. In Q3, Capex was $17.9M. GAAP expense is $130.2M and net loss is -$119.7M. The losses are quite large but would be expected since they currently have nothing for sale. They ended Q3 with $841M liquidity. For full year, they guide adjusted EBITDA loss between $280M to $300M. It is higher than prior guidance due to higher legal fees. The higher legal fees are not expected to for 2025. They also announced Jagdeep Singh cofounder will be retiring from the board at end of 2024. According to MarketScreener, Jagdeep Singh is 56 years old at this time. This is a relatively young age for retirement especially from a company one cofounded. This is a negative signal for the company since there is so much more work ahead for the company. He attended Stanford and Berkeley. His educational background is computer science and he has an MBA.
In the Q3 strategic outlook letter, QuantumScape acknowledges that QSE-5 B sample shipping only marks the beginning a long journey toward full scale production. At high volume, the defect rate needs to be few cells per million or lower. It will take a lot more work to get there. The risk is the company can go bankrupt if getting to commercial high volume takes longer than their available cash runway. If it succeeds before running out of cash and also ahead of competition, company valuation goes higher as it starts to have meaningful revenue growth. The smart money that is risk averse waits until there is less uncertainty.
Source: https://s29.q4cdn.com/884415011/files/doc_financials/2024/q3/QS-Shareholder-Letter-Q3-2024.pdf
https://s29.q4cdn.com/884415011/files/doc_presentation/2024/10/v2/QS-IR-Presentation-October-24.pdf
https://www.linkedin.com/pulse/our-next-phase-jagdeep-singh-2w9gc
https://www.marketscreener.com/quote/stock/QUANTUMSCAPE-CORPORATION-110986220/company-governance