Q1 2025 QuantumScape Corp Earnings Call

April 23, 2025

And welcome to quantum escaped the first quarter 2025 earnings conference call John Sega Quantum escaped Vice President of capital markets. You May begin your conference.

Thank you operator, good afternoon, and thank you to everyone for joining quantum's <unk> first quarter 2025 earnings call.

To supplement today's discussion. Please go to our IR website at IR Dot quantum escape dot com to view our shareholder letter.

Before we begin I want to call your attention to the safe Harbor provision for forward looking statements that is posted on our website as part of our quarterly update.

Forward looking statements generally relate to future events future technology progress or future financial or operating performance.

Our expectations and beliefs regarding these matters may not materialize.

Actual results in financial periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected.

Operator: You may begin your conference. Thank you, Operator. Good afternoon, and thank you to everyone for joining Quantumscape's first quarter 2025 earnings call.

There are risk factors that may cause actual results to differ materially from the content of our forward looking statements.

Thank you operator, good afternoon, and thank you to everyone for joining quantum's Capes first quarter 2025 earnings call.

Siva Sivaram: Next, a word on our progress towards our annual Our first key goal for the year is to bring the COBRA separator process into baseline production. This project is ahead of schedule. All the required separator processing equipment has already been installed and qualification is progressing well. we expect to bring COBRA into the baseline in Q2. Our second goal is to install higher volume cell assembly equipment. to match the higher throughput of COBRA. working as a joint team with on-site power co-engineers. We're enhancing the level of equipment automation, allowing us to increase the output and quality of QSC files.

That we cite in our shareholder letter Form 10-K, and other SEC filings, including uncertainties posed by the difficulty in predicting future outcomes.

Unknown Executive: To supplement today's discussion, please go to our IR website at ir.quantumscape.com to view our shareholder letters. Before we begin, I want to call your attention to the safe harbor provision for forward looking statements that is posted on our website as part of our quarterly update. Overlooking statements generally relate to future events, future technology progress, or future financial or operating performance. Our expectations and beliefs regarding these matters may not materialize. Actual results and financial periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected. There are risk factors that may cause actual results to differ materially from the content of our forward-looking statement for reasons that we cite in our shareholder letter, Form 10-K, and other SEC filings, including uncertainties posed by the difficulty in predicting future outcomes.

To supplement today's discussion. Please go to our IR website at IR Dot quantum escaped dot com to view our shareholder letter.

Kevin Hetrick: Joining us today will be quantum escapes CEO, Dr receiver <unk> and our CFO Kevin Hetrick.

Before we begin I want to call your attention to the safe Harbor provision for forward looking statements that is posted on our website as part of our quarterly update.

With that I'd like to turn the call over to CEVA.

Forward looking statements generally relate to future events future technology progress or future financial or operating performance.

Kevin Hetrick: Thank you John.

Speaker Change: I would like to begin by discussing our upcoming product lines.

Speaker Change: We continue to work closely with our prospective launch customers.

Our expectations and beliefs regarding these matters may not materialize actual results and financial periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected.

Speaker Change: As a reminder, this launch program is designed to be a low volume, but high visibility project.

Speaker Change: It is intended to serve as a real world vehicle demonstration highlighting the exceptional performance characteristics.

There are risk factors that may cause actual results to differ materially from the content of our forward looking statements for reasons that we cite in our shareholder letter Form 10-K, and other SEC filings, including uncertainties posed by the difficulty in predicting future outcomes.

Speaker Change: Technology platform as a step towards large scale commercialization.

Siva Sivaram: These equipment designs also represent an important piece of the technology platform that PowerCo will use in their large-scale projects. We have placed purchase orders for key pieces of equipment and will upgrade the baseline continuously as they arrive. Our third goal for 2025 is to begin shipping QSC-5B1 samples. and this goal remains on track. These COBRA-based samples will go into the launch program. which is intended to demonstrate the exceptional performance capabilities of the QSC5 platform in a real world application. B1 cells are the version that will supply the field testing phase of the launch program in 2020.

Speaker Change: The program is planned to unfold over multiple cases with field testing slated to begin in 2026.

CEVA: Joining us today will be quantum's, Gabe CEO, Dr receiver CEVA ROM and our CFO, Kevin Patrick with that I'd like to turn the call over to CEVA.

John Saager: Joining us today will be Quantumscape's CEO, Dr. Siva Sivaram, and our CFO, Kevin Hettrich.

Speaker Change: This quarter, we commenced shipping <unk> samples for module and system level integration and testing.

Siva Sivaram: With that, I'd like to turn the call over to Siva. Thank you, John. I would like to begin by discussing our upcoming product launch. We continue to work closely with our prospective launch As a reminder, this launch program is designed to be a low-volume but high-visibility project. It is intended to serve as a real world vehicle demonstration. highlighting the exceptional performance characteristics of our technology platform as a step towards large-scale commercialization. The program is planned to unfold over multiple phases, with field testing slated to begin in 2020. This quarter, we commenced shipping QSC-5 samples for module and systems level integration and testing.

CEVA: Thank you John.

CEVA: I would like to begin by discussing our upcoming product launch.

Speaker Change: Including design validation and calibration of the battery management system.

CEVA: We continue to work closely with our prospective launch customer.

Speaker Change: This is consistent with our development approach.

CEVA: As a reminder, this launch program is designed to be a low volume, but high visibility project.

Speaker Change: We focus on getting rapid customer feedback right.

Speaker Change: While making systematic and methodical improvements.

CEVA: It is intended to serve as a real world, where he can demonstration highlighting the exceptional performance characteristics.

Speaker Change: We are attacking to the shipment targets, we have established with our large customer.

Speaker Change: These shipments all powered by one adapter separated process.

Now that your platform as a step towards large scale commercialization.

Siva Sivaram: Our fourth annual goal is to expand our commercial engagement. On this front, we continue to intensify development activities with Powerco, the battery manufacturing company of the Volkswagen Group, as we work towards industrializing our technology for gigawatt-hour scale production. In Q1, we welcomed top leadership from the Volkswagen Group and PowerCo to personally review the progress made by the joint Powerco is the anchor customer in our growing technology ecosystem. to further expand this ecosystem. We are working with additional automotive OEM customers, as mentioned in our last earnings call. We are also building a global network of equipment vendors, material suppliers, contract manufacturers, and technology partners.

Speaker Change: Exceeding our key benchmarks, but yield and quality.

CEVA: The program is planned to unfold or multiple cases.

CEVA: With field testing slated to begin in 2026.

Factor is that would work horse for both customer shipments and development activities on our technology platform as we progress towards base lining our KOL brought process.

CEVA: This quarter, we commenced shipping <unk> samples for module and system level integration and testing.

Speaker Change: Cobra is a step change innovation in ceramics processing, which can enable an order of magnitude improvement and separated productivity relative to raptor.

Siva Sivaram: including design validation and calibration of the battery management system. This is consistent with our development approach. We focus on getting rapid customer feedback. while making systematic and methodical improvements. We are tracking to the shipment targets we have established with our launch These shipments are powered by our Raptor separator process. which is exceeding our key benchmarks for yield and quality.

CEVA: Including design validation and calibration of the battery management system.

CEVA: This is consistent with our development approach.

CEVA: We focused on getting rapid customer feedback right.

Speaker Change: Next a word on our progress towards our annual goals.

CEVA: While making systematic and methodical improvements.

Speaker Change: Our first key goal for the year is to bring the Cobra separated process in the baseline production.

CEVA: We are talking to the shipment targets, we have established with our largest customer.

Speaker Change: This project is ahead of schedule.

CEVA: These shipments are powered by our raptor separated process.

Speaker Change: All the required separate the processing equipment has already been installed and quantification is progressing well.

CEVA: It just exceeding our key benchmarks, but yield and quality.

Siva Sivaram: Leveraging the expertise of industry leaders across the valley. to that end. We have announced the first phase of an agreement to explore a collaboration with Murata Manufacturing for ceramics production. Marata has a deep expertise in high precision ceramic. which makes them an exceptional partner as we look to scale production of our proprietary ceramic separator. by combining our groundbreaking COBRA process. With Murata's proven capabilities and global manufacturing strength, we can accelerate the industrialization of our solid-state battery technology while maintaining our strong focus on innovation and technological advancement.

Siva Sivaram: Raptor is our workhorse for both customer shipments and development activities on our technology platform as we progress towards baselining our Cobra COBRA is a step change innovation in ceramics processing, which can enable an order of magnitude improvement in separator productivity relative to wrap. Next, a word on our progress towards our annual Our first key goal for the year is to bring the COBRA separator process into baseline production. This project is ahead of schedule. All the required separator processing equipment has already been installed and qualification is progressing well. We expect to bring COBRA into the baseline in Q2.

CEVA: Doctor if that would work horse for both customer shipments and development activities on our technology platform as we progress towards based lending our Cobra process.

Speaker Change: We expect to bring Cobra into the baseline in Q2.

Speaker Change: Our second goal is to install a higher volume cell assembly equipment.

Speaker Change: To match the higher throughput of Cobra.

CEVA: Cobra is a step change innovation in ceramics processing.

Speaker Change: Working as a joint team with onsite political engineers.

CEVA: Can enable an order of magnitude improvement and separated productivity relative to raptor.

Speaker Change: Enhancing the level of equipment automation, allowing us to increase the output and quality of <unk> samples.

CEVA: Next award on our progress towards our annual goal.

Speaker Change: These equipment designs also represent an important piece of the technology platform that our core values and they have large scale production.

CEVA: Our first key goal for the year is to bring the Cobra separate that process in the baseline production.

CEVA: This project is I heard up schedule at all.

Speaker Change: We have placed purchase orders for key pieces of equipment and will upgrade the baseline continuously as they are right.

CEVA: All of the required separate the processing equipment has already been installed and qualification is progressing well.

Speaker Change: Our third goal for 2025 is to begin shipping <unk> samples.

CEVA: We expect to bring Cobra into the baseline in Q2.

Siva Sivaram: Last, I want to pull back and look at the big picture. This quarter, we released our strategic blueprint. This is our playbook for commercializing our next generation battery technology at a global scale. and we encourage all shareholders to view it. Here, we'd like to highlight a few important aspects of this blueprint. As a technology company, we believe our business model is resilient to changes in global trade. by partnering with customers around the world and licensing our technology for their own production. we can achieve a global impact. while limiting our exposure to the risks presented by policy.

Speaker Change: And this goal remains on track.

CEVA: Our second goal is to install a higher volume cell assembly equipment demand.

Siva Sivaram: Our second goal is to install higher volume cell assembly equipment. to match the higher throughput of COBRA. working as a joint team with on-site PowerCo engineers. We're enhancing the level of equipment automation, allowing us to increase the output and quality of QSC files. These equipment designs also represent an important piece of the technology platform that PowerCo will use in their large-scale projects. We have placed purchase orders for key pieces of equipment and will upgrade the baseline continuously as they arrive. Our third goal for 2025 is to begin shipping QSC-5B1 samples. and this goal remains on track.

Speaker Change: These Cobra based samples will go into the launch program.

CEVA: Matched the highest throughput of Cobra.

Speaker Change: It is intended to demonstrate the exceptional performance capabilities of the <unk> platform in a real world application.

CEVA: Working as a joint team with onsite political engineers.

CEVA: We are enhancing the level of equipment automation, allowing us to increase the output and quality of USD five samples.

Speaker Change: B one's health or the version that will supply the field testing phase of the launch program in 2026.

CEVA: These equipment designs also represent an important piece of the technology platform that our core values and they are large scale production.

Speaker Change: Our fourth annual goal is to expand our commercial engagements.

Speaker Change: On this front, we continue to intensify development activities with political.

CEVA: We have plans to purchase orders for key pieces of equipment and will upgrade the baseline continuously as they are right.

Speaker Change: The battery manufacturing company of the Volkswagen Group as.

Speaker Change: As we work towards industrializing, our technology four gigawatt hour scale production.

CEVA: Our third goal for 2025 is to begin shipping <unk> five b one samples.

Speaker Change: In Q1, we welcomed top leadership from the Volkswagen group and political.

Siva Sivaram: Second, we will continue to create value by pushing the technology front. We have a development roadmap of future innovation in battery technology that builds on our solid-state lithium metal platform. And these innovations are designed to unlock higher performance, drive wider adoption, and increase our value as a company.

CEVA: And this goal remains on track.

Speaker Change: Personally the view of the progress made by the joint.

Siva Sivaram: These COBRA-based samples will go into the launch program, which is intended to demonstrate the exceptional performance capabilities of the QSC-5 platform in a real-world application. B1 cells are the version that will supply the field testing phase of the launch program in 2020. Our fourth annual goal is to expand our commercial engagement. On this front, we continue to intensify development activities with Powerco, the battery manufacturing company of the Volkswagen Group, as we work towards industrializing our technology for gigawatt-hour scale production. In Q1, we welcomed top leadership from the Volkswagen Group and PowerCo to personally review the progress made by the joint Powerco is the anchor customer in our growing technology ecosystem.

CEVA: These Cobra based samples will go into the launch program.

Speaker Change: Political is that anchor customer and our growing technology ecosystem.

CEVA: It is intended to demonstrate the exceptional performance capabilities of the <unk> platform in a real world application.

Speaker Change: To further expand this ecosystem, we are working with additional automotive OEM customers.

CEVA: <unk> health or the version that will supply the field testing phase of the launch program in 2026.

Speaker Change: As mentioned in our last earnings call.

Speaker Change: We're also building a global network of equipment vendors.

CEVA: Our fourth annual goal is to expand our commercial engagements.

Siva Sivaram: Finally... We are building an ecosystem of partners to help rapidly bring our technology to the world. Technological revolutions can only happen when companies around the world see the opportunity and work together to make it a reality. Our framework agreement with Murata Manufacturing represents another important step in this direction. When looking at the global perspective, it is clear that the electric powertrain is set to dominate the automotive industry. and automakers are looking to solid state battery technology to remain competitive. We believe our technology when combined with our strong balance sheet and consistent record of execution. sets us apart as a clear leader in solid-state banking.

Speaker Change: <unk> sat players contract manufacturers and technology partners.

CEVA: On this front, we continue to intensify development activities with political the battery manufacturing company of the Volkswagen Group.

Speaker Change: Leveraging the expertise of industry leaders across the value chain.

Speaker Change: Cause that game.

CEVA: As we work towards industrializing, our technology four gigawatt hour scale production.

Speaker Change: We've announced the first phase of an agreement to explore a collaboration with Morocco manufacturing.

CEVA: In Q1, we welcomed top leadership from the Volkswagen group and political.

Speaker Change: Ceramics prediction.

Speaker Change: But at that has a deep expertise in high precision ceramics.

CEVA: Personally the view of the progress made by the joint team.

Speaker Change: Which makes them an exceptional partner as we look to scale production offer a proprietary ceramic separate.

CEVA: Political is that anchor customer and our growing technology ecosystem.

Siva Sivaram: to further expand this ecosystem. We are working with additional automotive OEM customers, as mentioned in our last earnings call. We're also building a global network of equipment vendors, material suppliers, contract manufacturers, and technology partners. leveraging the expertise of industry leaders across the valley.

CEVA: To further expand this ecosystem, we had working with additional automotive OEM customers as mentioned in our last earnings call.

Speaker Change: By combining our groundbreaking Cobra process.

Speaker Change: Marotta has proven capabilities and global manufacturing strength.

CEVA: We're also building a global network equipment vendors material suppliers contract manufacturers and technology partners.

Speaker Change: We can accelerate the industrialization of our solid state battery technology, while maintaining our strong focus on innovation and technological advancement.

Siva Sivaram: And we are well positioned to expand our advantage and generate exceptional shareholder value over the long term. Thank you for your support, and we are excited to report on our continued progress over the coming quarter.

Leveraging the expertise of industry leaders across the value chain.

Last.

Speaker Change: I wanted to pull back and look at the Big picture.

Siva Sivaram: to that end.

Cause that game.

Speaker Change: This quarter, we released our strategic blueprint.

Siva Sivaram: We have announced the first phase of an agreement to explore a collaboration with Murata Manufacturing. for ceramics production. Murata has a deep expertise in high precision ceramic. which makes them an exceptional partner as we look to scale production of our proprietary ceramic separator. by combining our groundbreaking COBRA process. With Murata's proven capabilities and global manufacturing strength, we can accelerate the industrialization of our solid-state battery technology while maintaining our strong focus on innovation and technological advances.

CEVA: We have announced the first phase of an agreement to explore a collaboration with Morocco manufacturing per se.

Speaker Change: This is our playbook for commercializing our next generation battery technology at a global scale and.

Kevin Hettrich: With that Let me turn things over to Kevin for a word on our financial outcomes. Thank you, Siva. Capital expenditures in the first quarter of 2025 were $5.8 million. Q1 CapEx primarily supported facilities and equipment purchases as we prepare for higher volume QSC-5 B1 sample production using the COBRA separator process. We expect CapEx spend to be well above Q125 levels through the remainder of 2025 as we order, install and qualify higher throughput equipment to support our targeted launch program and engage prospective customers.

CEVA: <unk> production.

CEVA: Without that has a deep expertise in high precision ceramics.

Speaker Change: And we encourage all shareholders to view it.

Speaker Change: Here, we'd like to highlight a few important aspects of this blueprint.

CEVA: Which makes them an exceptional partner as we look to scale production offer proprietary ceramic separate.

Speaker Change: First.

CEVA: By combining our groundbreaking Cobra process with Murata has proven capabilities and global manufacturing strength.

Speaker Change: As a technology company, we believe our business model is resilient to.

Speaker Change: The changes in global trade regimes.

Speaker Change: By partnering with customers around the world.

CEVA: We can accelerate the industrialization of our solid state battery technology.

Speaker Change: In licensing our technology for their own production.

CEVA: While maintaining our strong focus on innovation and technological advancement.

Speaker Change: We can achieve a global impact.

Speaker Change: While limiting our exposure to the risks presented by policy changes.

CEVA: Okay.

CEVA: Last I.

Siva Sivaram: Last, I want to pull back and look at the big picture. This quarter we released our strategic blueprint. This is our playbook for commercializing our next generation battery technology at a global scale. and we encourage all shareholders to view it. Here, we'd like to highlight a few important aspects of this blueprint. As a technology company, we believe our business model is resilient to changes in global trade regulations. by partnering with customers around the world and licensing our technology for their own production. we can achieve a global impact. while limiting our exposure to the risks presented by policy.

CEVA: I wanted to pull back and look at the Big picture.

Speaker Change: Second.

Kevin Hettrich: We reiterate our full year guidance for CapEx to be between $45 million and $75 million. GAAP operating expenses and GAAP net loss in Q1 were $123.6 million and $114.4 million, respectively. We forecast EPS to remain roughly flat throughout the year, as increased spending to support higher output levels and the impact of current tariff policy, we expect to be broadly offset by improvements in operational efficiency, such as the planned transition from our Raptor to our Cobra separator process and cost-saving initiatives. Adjusted EBITDA loss was $64.6 million in Q1, in line with expectations. A table reconciling gap net loss and adjusted EBITDA is available in our shareholder letter.

Speaker Change: We will continue to create value by pushing the technology frontier.

CEVA: This quarter, we released our strategic blueprint.

CEVA: This is our playbook for commercializing our next generation battery technology at a global scale.

Speaker Change: We have a development roadmap, our future innovation and battery technology that builds on our solid state lithium metal platform and these innovation are there.

CEVA: And we encourage all shareholders to view it.

Speaker Change: Designed to unlock higher performance drive wider adoption and increase our value as a company.

Here, we'd like to highlight a few important aspects of this blueprint.

CEVA: First.

As a technology company, we believe our business model is resilient to.

Speaker Change: Finally.

Speaker Change: We are building an ecosystem of partners.

CEVA: The changes in global trade regimes.

Speaker Change: Rapidly bring our technology to the world.

CEVA: By partnering with customers around the world.

Speaker Change: Technological evolutions can only happen when companies around the world see the opportunity and work together to make it a reality.

CEVA: In licensing our technology for their own production it can achieve a global impact.

Speaker Change: Our framework agreement with Murata manufacturing represents another important step in this direction.

CEVA: While limiting our exposure to the risks presented by policy changes.

CEVA: Second.

Speaker Change: When looking at the global perspective, it is clear that the electric powertrain is set to dominate doctor wanted to industry and auto makers are looking to solid state battery technology to remain competitive.

CEVA: We will continue to create value by pushing the technology front yet.

Kevin Hettrich: We reiterate our full year guidance for adjusted EBITDA loss to be between $250 million and $280 million. We ended Q1 with $860.3 million in liquidity and maintain our guidance that our cash runway extends into the second half of 2028. Any additional funds from customer inflows? or Capital Markets Activity would further extend this cash run. Thanks, Kevin.

CEVA: We have a development roadmap, our future innovation and battery technology that builds on our solid state lithium metal platform and these innovations are designed to unlock higher performance drive wider adoption and increase our value as a company.

Speaker Change: We believe our technology edge.

Speaker Change: When combined with our strong balance sheet and consistent record of execution.

Speaker Change: Sets us apart as the clear leader in talented batteries.

CEVA: Finally.

Siva Sivaram: Finally We are building an ecosystem of partners to help rapidly bring our technology to the world. Technological revolution can only happen when companies around the world see the opportunity and work together to make it a reality. Our framework agreement with Murata Manufacturing represents another important step in this direction.

CEVA: We're building an ecosystem of partners.

Speaker Change: And we are well positioned to expand our advantage and generating exceptional shareholder value over the long term.

CEVA: Rapidly bring our technology to the world.

CEVA: Technological evolutions can only happen when companies around the world see the opportunity and work together to make it a reality.

John Saeger: We'll begin today's Q&A portion with a few questions we've received from investors or that I believe investors would be interested in. Siva, first question for you. Can you update our investors on our automotive customer engagement during the quarter and explain how that affects our existing customers?

Speaker Change: Thank you for your support and we are excited to report on our continued progress over the coming quarter.

CEVA: Our framework agreement with Murata manufacturing.

CEVA: Another important step in this direction.

Speaker Change: With that.

Kevin Hetrick: Let me turn things over to Kevin for a word on our financial outlook.

Siva Sivaram: When looking at the global perspective, it is clear that the electric powertrain is set to dominate the automotive industry. and automakers are looking to solid-state battery technology to remain competitive. We believe our technology when combined with our strong balance sheet and consistent record of execution. sets us apart as a clear leader in solid-state banking. And we are well positioned to expand our advantage and generate exceptional shareholder value over the long term.

CEVA: When looking at the global perspective, it is clear that the electric powertrain is set to dominate the automotive industry and auto makers are looking to solid state battery technology to remain competitive.

Siva Sivaram: John, let me start with our existing customer. The product launch that we are planning is going very well. The teams are working hand in glove. And we are shipping the volumes that the customer needs for module and systems level testing. That means our customer will be packing these cells into larger modules, connecting them electrically into a battery management system, the BMS, and calibrate that BMS according to a specific performance profile of our cells and the requirements of the application. Of course. to ship in these volumes. We have to pass the UN 38.3 safety test. We have now passed these tests, which is another important milestone in our commercialization roadmap.

Kevin Hetrick: Thank you Sarah capital expenditures in the first quarter of 2025 or $5 8 million <unk>.

Kevin Hetrick: Q1, Capex, primarily supported facilities and equipment purchases as we prepare for higher volume <unk> sample production using the Cobra separator process.

CEVA: We believe our technology edge, when combined with our strong balance sheet and consistent record of execution.

Kevin Hetrick: We expect capex spend to be well above Q1, 'twenty five levels through the remainder of 2025, as we order install and qualify higher throughput equipment to support our targeted launch program and engage prospective customers. We reiterate our full year guidance for capex to be between $45 million and $75 million.

CEVA: Sets us apart as the clear leader in solid state batteries.

CEVA: And we are well positioned to expand our advantage and generating exceptional shareholder value over the long term.

Siva Sivaram: Thank you for your support. And we are excited to report on our continued progress over the coming quarter.

CEVA: Thank you for your support and we are excited to report on our continued progress over the coming quarter.

Kevin Hetrick: GAAP operating expenses and GAAP net loss in Q1 were $123 6 million and $114 4 million respectively.

CEVA: With that.

Kevin Hettrich: Let me turn things over to Kevin for a word on our financial Thank you, Siva. Capital expenditures in the first quarter of 2025 were $5.8 million. P1 CapEx primarily supported facilities and equipment purchases as we prepare for higher volume QSC-5 B1 sample production using the COBRA separator process. We expect CapEx spend to be well above Q1 2025 levels through the remainder of 2025 as we order, install, and qualify higher throughput equipment to support our targeted launch program and engage prospective customers.

Kevin: Let me turn things over to Kevin for a word on our financial outlook.

Siva Sivaram: This is a well-planned launch. And we'll have exciting details to share as we progress.

Kevin Hetrick: We forecast EPS to remain roughly flat throughout the year as increased spending to support higher output levels and the impact of current tariff policy, we expect to be broadly offset by improvements in operational efficiency.

Kevin: Thank you Sarah capital expenditures in the first quarter of 2025 or $5 8 million.

Siva Sivaram: Now, coming to our additional automotive ways. The response from our customers to the licensing business model has been overwhelmingly positive. We continue to be in active discussions with our prospective customers. We have developed an engagement model with PowerCo as the first customer. that allows us to collaborate with our customers to design bespoke solutions. that fit their roadmap. Each relationship is unique, and these are long term engagements. And these customers are in our facilities working with us.

Kevin: Q1, Capex, primarily supported facilities and equipment purchases as we prepare for higher volumes USD five P. One sample production using the cobra separate or process.

Kevin Hetrick: Such as the planned transition from our Raptor to our Cobra separator process and cost saving initiatives.

Kevin: We expect capex spend to be well above Q1, 'twenty five levels through the remainder of 2025, as we order install and qualify higher throughput equipment to support our targeted launch program and engage prospective customers. We reiterate our full year guidance for capex to be between $45 million and $75 million.

Kevin Hetrick: Adjusted EBITDA loss was $64 6 million in Q1 in line with expectations.

Kevin Hetrick: A table reconciling GAAP net loss and adjusted EBITDA is available in our shareholder letter.

Kevin Hettrich: We reiterate our full year guidance for CapEx to be between $45 million and $75 million. GAAP operating expenses and GAAP net loss in Q1 were $123.6 million and $114.4 million, respectively. We forecast EPS to remain roughly flat throughout the year as increased spending to support higher output levels and the impact of current tariff policy, we expect to be broadly offset by improvements in operational efficiency, such as the plan transition from our Raptor to our Cobra separator process and cost saving initiatives. Adjusted EBITDA loss was $64.6 million in Q1, in line with expectations. A table reconciling gap net loss and adjusted EBITDA is available in our shareholder letter.

Kevin Hetrick: We reiterate our full year guidance for adjusted EBITDA loss to be between $250 million and $280 million.

Kevin: GAAP operating expenses and GAAP net loss in Q1 were $123 6 million and $114 4 million respectively.

Kevin Hetrick: We ended Q1 with 863 million in liquidity and maintain our guidance that our cash runway extends into the second half of 2028.

Siva Sivaram: in stark contrast to public Our conversations with our customers have a sense of urgency and enthusiasm. The world needs a better battery and our customers see the step change improvement of our technology. We can offer a no-compromise solution that beats internal combustion engines on pure driver experience.

Kevin: We forecast EPS to remain roughly flat throughout the year.

Kevin: As increased spending to support higher output levels and the impact of current tariff policy, we expect to be broadly offset by improvements in operational efficiency such as the planned transition from our raptor to our Cobra separator process and cost saving initiatives.

Kevin Hetrick: Any additional funds from customer inflows.

Kevin Hetrick: Or capital markets activity would further extend this cash runway.

Kevin Hetrick: Thanks, Kevin will begin today's Q&A portion with a few questions. We've received from investors or that I believe investors would be interested in.

John Saeger: Thanks, Siva. Today, QF and Murata Manufacturing announced the framework agreement for ceramics production using our Cobra technology.

Kevin: Adjusted EBITDA loss was $64 6 million in Q1 in line with expectations.

Speaker Change: Kiva first question for you can you update our investors on our automotive customer engagements during the quarter and explain how that affects our existing customer.

Kevin: A table reconciling GAAP net loss and adjusted EBITDA is available in our shareholder letter.

Siva Sivaram: Could you please elaborate on their role in a licensing model and how this fits into our overall strategic blueprint? Absolutely. Our engagement with partners like Murata is fully aligned with our strategy as a technology license The vision is to develop our proprietary solid state battery technology platform. and then partners. with world class manufacturers to bring it to scale. The first major step in that journey was our agreement with Powerco, which is targeting 40 to 80 gigawatt hours of production capacity. to give you a sense of scale. Even 40 gigawatt hour translates into hundreds of millions of square meters of separator capacity.

John: John Let me start with our existing customer.

Kevin: We reiterate our full year guidance for adjusted EBITDA loss to be between $250 million and $280 million.

John: The product lines that we are planning is going very well.

John: The teams are working hand in glove.

Kevin: We ended Q1 with 860, <unk> 3 million in liquidity and maintain our guidance that our cash runway extends into the second half of 2028.

John: And we are shipping the volumes that the customer needs for module and system level testing.

John: That means our customers will be backing these cells into larger modules connecting them electrically into a battery management system, the BMS and.

Kevin: Any additional funds from customer inflows.

John: And calibrating that Vms according to the specific performance profile of ourselves and the requirements of the application.

Kevin: Or capital markets activity would further extend this cash runway.

Kevin: Thanks, Kevin will begin today's Q&A portion with a few questions. We've received from investors or that I believe investors would be interested in.

Unknown Executive: We'll begin today's Q&A portion with a few questions we've received from investors or that I believe investors would be interested in.

John: Of course.

John: To ship in these volumes.

John: To pass the $138 three safety tests.

Siva Sivaram: Siva, first question for you, can you update our investors on our automotive customer engagement during the quarter and explain how that affects our existing customers? John, let me start with our existing customer. The product launch that we are planning is going very well. The teams are working hand in glove. and we are shipping the volumes that the customer needs for module and systems level testing. That means our customer will be packing these cells into larger modules, connecting them electrically into a battery management system, the BMS, and calibrate that BMS according to a specific performance profile of our cells and the requirements of the application.

Speaker Change: Shiva first question for you can you update our investors on our automotive customer engagements during the quarter and explain how that affects our existing customer John.

John: We have now passed these tests, which is another important milestone in our commercialization roadmap.

Siva Sivaram: manufacturing at such high volume and with the necessary quality. requires collaboration with highly capable partners.

Kevin: John Let me start with our existing customer.

John: This is a well planned launch.

Kevin: The product lines that we are planning is going very well.

John: And we will have exciting details to share as we progress.

Kevin: The teams are working hand in glove.

Okay.

John: Now coming to our additional automotive Oems.

Siva Sivaram: That's where Murat occurs. They are a global leader with decades of experience in high precision. And we are excited about the opportunity to leverage their by combining our groundbreaking COBRA-separated production process. with Murata's proven capabilities in global manufacturing string. We can accelerate the industrialization of our solid state battery technology while maintaining our strong focus on innovation and technological advancements. As we continue to grow, we expect to bring in additional partners across different parts of the supply chain.

Kevin: And we are shipping the volumes that the customer needs for module and system level testing.

John: The response from our customers to the licensing business model has been overwhelmingly positive.

Kevin: That means our customers will be backing these cells into larger modules connecting them electrically into a battery management system, the BMS and calibrate that Vms. According to the specific performance profile of ourselves.

John: We continue to be in active discussions with other prospective customers.

John: And engagement model with political at the first customers that allows us to collaborate with our customers to design bespoke solutions that fit their roadmaps.

Kevin: The requirements of the application.

Siva Sivaram: Of course. to ship in these volumes. We have to pass the UN 38.3 safety test.

Kevin: Of course.

Kevin: Chip in these volumes.

John: Each relationship is unique.

Kevin: We have to pass the U S 38.3 safety tests.

John: These are long term engagement.

Siva Sivaram: We have now passed these tests, which is another important milestone in our commercialization roadmap. This is a well-planned launch. And we'll have exciting details to share as we progress.

John: And these customers are in our facilities working with us.

Kevin: We have now passed these tests, which is another important milestone in our commercialization roadmap.

John: In Stark contrast to public sentiment.

Kevin: This is a well planned launch.

John: Our conversations with our customers have a sense of urgency and enthusiasm.

Siva Sivaram: Our approach is intentional and modular. We are nurturing a broader ecosystem of collaborators who can help us scale while protecting our This model draws from my experience in semiconductors, where disaggregation of the supply chain enabled innovation. Instead of vertical integration, each player focuses on what they do best. Fabulous design companies innovate, foundries manufacture, and everybody wins by operating at This approach doesn't just support IP creation. It also strengthens IP protection by separating know-how across specialized partners with well-aligned we are applying that same logic.

And we have exciting details to share as we progress.

Siva Sivaram: Now coming to our additional automotive OE. The response from our customers to the licensing business model has been overwhelmingly positive. We continue to be in active discussions with our prospective customers.

Kevin: Now coming to our additional automotive Oems.

John: The world needs, a better battery and our customers see the step change improvement of our technology.

Kevin: The response from our customers to the licensing business model has been overwhelmingly positive.

John: We can offer and no compromise solution that beats internal combustion engines on pure driving experience.

Kevin: We continue to be in active discussions with other prospective customers wherever they are.

Steve: Thanks, Steve.

Siva Sivaram: We have developed an engagement model with PowerCo as the first customer that allows us to collaborate with our customers to design bespoke solutions. that fit their roadmap. Each relationship is unique, and these are long-term engagements. And these customers are in our facilities working with us.

Kevin: And engagement model with political as the first customer that allows us to collaborate with our customers to a design bespoke solutions that fit their roadmaps.

Steve: <unk> <unk> and Murata manufacturing announced the framework agreement for ceramics production using our corporate technology could you. Please elaborate on their role in our licensing model and how this fits into our overall strategic blueprint.

Kevin: Each relationship is unique.

Steve: Absolutely.

Kevin: And these are long term engagements.

Steve: Our engagement with partners take marotta.

Kevin: And these customers are in our facilities working with us.

Steve: Is fully aligned with our strategy as a technology licensing company.

Kevin: In Stark contrast to public sentiment I.

Steve: The vision is to develop our proprietary solid state battery technology platform.

Kevin: Our conversations with our customers have a sense of urgency and enthusiasm.

Steve: And then partner.

Kevin Hettrich: Kevin, turning to you now. You've reaffirmed our guidance in the shareholder letter today. I have two questions for you on that. First, can you discuss the tariff implications on our financial outlook in the near term? And then can you discuss how our supply chain exposure compares to that of conventional lithium ions?

Steve: With World class manufacturers to bring it to scale efficiently.

Kevin: The world needs, a better battery and our customers see the step change improvement of our technology.

Steve: The first major step in that journey was our agreement with political which is targeting 40 to 80 gigawatt hours of production capacity.

Kevin: We can offer and no compromise solution that beats internal combustion engines.

Kevin: Pure driving experience.

Steve: To give you a sense of scale.

Steve: Thanks, Steve.

Siva Sivaram: Today, QF and Murata Manufacturing announced the framework agreement for ceramics production using our COBRA technology. Could you please elaborate on their role in a licensing model and how this fits into our overall strategic blueprint? Absolutely. Our engagement with partners like Murata is fully aligned with our strategy as a technology licensing company. The vision is to develop our proprietary solid state battery technology platform. and then partners. with world class manufacturers to bring it to scale efficiently. The first major step in that journey was our agreement with Powerco, which is targeting 40 to 80 gigawatt hours of production capacity.

Steve: Hey, <unk> and Murata manufacturing announced a framework agreement for ceramics production using our corporate technology could you. Please elaborate on their role in our licensing model and how this fits into our overall strategic blueprint.

Steve: Even 40 gigawatt hour translates into hundreds of millions of square meters of separate components.

Kevin Hettrich: On the topic of tariffs, I have three points to make. First, We forecast tariffs in their current form would only have a marginal impact on our cost of materials and equipment. We're actively working to mitigate this by evaluating lower tariff sources and through continuous efforts to reduce costs. We are not changing guidance and we reiterate our adjusted EBITDA loss and CapEx guidance for the year.

Steve: Manufacturing at such high volume.

Steve: And with the necessary quality.

Steve: Absolutely.

Steve: Requires collaboration with highly capable partners.

Steve: Our engagement with partners like Murata is.

Steve: Is fully aligned with our strategy as a technology licensing company.

Steve: That said without that comes in.

Steve: They are a global leader with decades of experience in high precision ceramics and.

Steve: The vision is to develop our proprietary solid state battery technology platform.

Kevin Hettrich: Second, China has restricted export of certain critical materials to the US. We have not been impacted by these restrictions. I would also highlight that our anode-less design eliminates graphite from the cell, a material dominated by China from a supply chain point of view. Our anode-less design both removes the cost of the anode as manufactured, along with the associated supply chain risk.

Steve: And we are excited about the opportunity to leverage that expertise.

Steve: And then partner.

Steve: By combining our groundbreaking cobra separated production process.

Steve: With World class manufacturers to bring it to scale efficiently.

Steve: The first major step in that journey was our agreement with political which is targeting 40 to 80 gigawatt hours of production capacity.

Steve: With.

Steve: Proven capabilities and global manufacturing things.

Steve: Can accelerate the industrialization of our solid state battery technology, while maintaining a strong focus on innovation and technological advancement.

Siva Sivaram: to give you a sense of scale. Even 40 gigawatt hour translates into hundreds of millions of square meters of separator components. manufacturing at such high volume and with the necessary quality. requires collaboration with highly capable partners. That's where Murata comes in. They are a global leader with decades of experience in high-precision ceramics. and we are excited about the opportunity to leverage their expertise. by combining our groundbreaking COBRA-separated production process. with Murata's proven capabilities in global manufacturing strength. We can accelerate the industrialization of our solid state battery technology while maintaining our strong focus on innovation and technological advances.

Steve: To give you a sense of scale.

Steve: Even 40 gigawatt hour translates into hundreds of millions of square meters of separating components.

Kevin Hettrich: Third, we are a global technology licensing company. Our success derives from innovation, ecosystem development, and enablement of our licensing partners. We remain focused on meeting the massive worldwide demand for significantly higher-performing batteries.

Steve: As we continue to grow we expect to bring in additional partners across different parts of the supply chain.

Steve: Manufacturing at such high volume.

Steve: And with the necessary quality.

Steve: Our approach is intentional and modular.

Steve: It requires collaboration with highly capable partners.

Steve: We are nurturing a broader ecosystem of collaborators who can help us scale, while protecting our IP.

Steve: That's where <unk> comes in.

Operator: We're now ready to begin the live portion of today's call. Operator, please open up the line for questions. Thank you. If you would like to ask a question, please press star one on your telephone keypad. If you would like to withdraw your question, simply press star one again. Please ensure that you are not on speakerphone and that your phone is not on mute when called upon. Thank you.

Steve: They are a global leader with decades of experience in high positions ceramics.

Steve: This model draws from my experience in semiconductors, where disaggregation of the sub <unk> enabled innovation.

Steve: And we are excited about the opportunity to leverage their expertise.

Steve: By combining our groundbreaking cobra separated production process.

Steve: Instead of vertical integration each player focuses on what they do best travel.

Steve: With proven capabilities and global manufacturing things.

Steve: Fabless design companies innovate foundries manufacturer and everybody wins by operating at scale.

Steve: We can accelerate the industrialization of our solid state battery technology, while maintaining a strong focus on innovation and technological advancement.

Jordan Levy: Your first question comes from Jordan Levy with Truist Securities. Your line is open. Afternoon, all appreciate the commentary on the Murata deal here.

Steve: This approach doesn't just support IP creation. It also strengthens IP protection by separating knowhow across specialized partners with well aligned incentives.

Steve: As we continue to grow we expect to bring in additional partners across different parts of the supply chain.

Siva Sivaram: As we continue to grow, we expect to bring in additional partners across different parts of the supply chain. Our approach is intentional and modular.

Siva Sivaram: Maybe just to dive a little bit more in on that is the thought that they kind of step in after you've worked out some of the commercialization IP and pathway for separator production, or are they going to be kind of an integral part of that, that kind of trajectory? Jordan, Murata, as you know, is a world leader in precision ceramic production. They already supply a lot into both the electric vehicle and consumer electronics market. and they have a global presence in high volume ceramic manufacturing. So they are a well planned partner for us to ramp high volume production.

Steve: Playing that same logic here.

Steve: Our approach is intentional and modular.

Speaker Change: Thanks again <unk>.

Speaker Change: Kevin turning to you know you've reaffirmed our guidance in the shareholder letter today I have two questions for you on that front.

Siva Sivaram: We are nurturing a broader ecosystem of collaborators who can help us scale while protecting our This model draws from my experience in semiconductors, where disaggregation of the supply chain enabled innovation. Instead of vertical integration, each player focuses on what they do best. Fabulous design companies innovate, foundries manufacture, and everybody wins by operating at scale. This approach doesn't just support IP creation, it also strengthens IP protection by separating know-how across specialized partners with well-aligned incentives. we are applying that same logic.

Steve: We are nurturing a broader ecosystem of collaborators who can help us scale, while protecting our IP.

Speaker Change: First can you discuss the tariff implications on our financial outlook in the near term.

Steve: This model draws from my experience in semiconductors, where disaggregation of the supply chain enabled innovation.

Speaker Change: And then can you discuss how our supply chain exposure compares to that of conventional lithium ion.

Steve: Instead of vertical integration each player focuses on what they do best.

Speaker Change: On the topic of tariffs I have three points to make.

Speaker Change: First.

Steve: Fabulous design companies innovate foundries manufacturer and everybody wins by operating at scale.

Speaker Change: We forecast tariffs in their current form would only have a marginal impact on our cost of materials and equipment.

Speaker Change: Actively working to mitigate this by evaluating lower tariff sources and through continuous efforts to reduce costs, we are not changing guidance and we reiterate our adjusted EBITDA loss in Capex guidance for the year.

Steve: This approach doesn't just support IP creation. It also strengthens IP protection by separating knowhow across specialized partners with well aligned incentives.

Steve: We are applying that same logic here.

Siva Sivaram: The excitement that they showed when they came here to look at the COBRA technology was one of those things to behold. I mean, we were working together and they see the possibilities of high volume, thin ceramic production together. So we expect them to be a very integral part of our supply chain as we develop the ecosystem. The QS ecosystem as it grows up, they'll be a big part. The only other thing I could add is that in addition to the speed and the capital efficiency with which we partner with Murata, working with partners as part of the broader QF ecosystem adds value to our core technology platform.

Speaker Change: Second China has restricted export of certain critical materials to the U S.

Speaker Change: Thanks, again silver Kevin turning to you know you reaffirmed our guidance in the shareholder letter today I have two questions for you on that front.

Siva Sivaram: Thanks again, Siva.

Kevin Hettrich: Kevin, turning to you now. You've reaffirmed our guidance in the shareholder letter today. I have two questions for you on that. First, can you discuss the tariff implications on our financial outlook in the near term? And then, can you discuss how our supply chain exposure compares to that of conventional lithium ion?

Speaker Change: We have not been impacted by these restrictions I would also highlight that our analysts design eliminates graphite from himself a material dominated by China from a supply chain point of view.

Speaker Change: First can you discuss the tariff implications on our financial outlook in the near term and then can you discuss how our supply chain exposure compares to that of conventional lithium ion.

Speaker Change: Our analysts design, both removes the cost of the earn out as manufactured along with the associated supply chain risk.

Kevin Hettrich: On the topic of tariffs, I have three points to make. First, We forecast tariffs in their current form would only have a marginal impact on our cost of materials and equipment. We're actively working to mitigate this by evaluating lower tariff sources and through continuous efforts to reduce costs. We are not changing guidance, and we reiterate our adjusted EBITDA loss and CapEx guidance for the year.

Speaker Change: On the topic of tariffs I have three points to make.

Speaker Change: Third we are a global technology licensing company. Our success derives from innovation ecosystem development and enablement of our licensing partners. We remain focused on meeting the massive worldwide demand for significantly higher performing batteries.

Speaker Change: First.

Speaker Change: We forecast tariffs in their current form would only have a marginal impact on our cost of materials and equipment.

Speaker Change: Okay. Thanks, so much we're now ready to begin the <unk> portion of today's call.

Jordan Levy: As more global players invest resources and know-how into our ecosystem, the platform becomes more robust and ultimately more valuable. super helpful. Appreciate that.

Speaker Change: Operator, please open up the line for questions.

Speaker Change: Second China has restricted export of certain critical materials to the U S. We have not been impacted by these restrictions I would also highlight that our analysts design eliminates graphite from yourself a material dominated by China from a supply chain point of view.

Thank you if you would like to ask a question. Please press star one on your telephone keypad.

Jordan Levy: And then maybe just a quick follow up on the on any incremental IP licensing deals. I recognize there's nothing to announce today, but just to kind of gauge the conversations you're having.

Speaker Change: I would like to withdraw your question simply press Star one again please.

Speaker Change: Please ensure that you are not on speaker phone and that your phone is not on mute when called upon thank you.

Speaker Change: Analysts design, both removes the cost of the anode as manufactured along with the associated supply chain risk.

Speaker Change: Your first question comes from Jordan Levy with Truth Securities. Your line is open.

Siva Sivaram: Have you seen any, you know, uptick in excitement on your potential customer base or anything with all the geopolitical environment in Tariff, Toronto? And Jordan, this is a fairly important issue that we have. In general, ever since we announced that we are a technology licensing company, And when we started talking to our customers. There is a real uptick in the urgency with which they want to proceed and the excitement at the technology. Overall, there may be Choppy Waters in the industry, but our interactions are exactly to the contrary. We see them really want to partner with us and develop these long-term relationships where we can develop bespoke solutions for their roadmap.

Jordan Levy: Afternoon, all I appreciate the commentary on the Marotta deal here, maybe just to dive a little bit more.

Jordan Levy: Is the thought that they did.

Speaker Change: Stefan after you've worked out some of the commercialization pathway for Sip related product.

Speaker Change: Okay. Thanks, so much we're now ready to begin the <unk> portion of today's call.

Unknown Executive: We're now ready to begin the live portion of today's call. Operator, please open up the line for questions. Thank you. If you would like to ask a question, please press star one on your telephone keypad. If you would like to withdraw your question, simply press star one again. Please ensure that you are not on speakerphone and that your phone is not on mute when called upon. Thank you.

Jordan Levy: We're going to be kind of an integral part of that.

Speaker Change: Operator, please open up the line for questions.

Jordan Levy: That kind of trajectory.

Jordan Levy: Jordan.

Speaker Change: Thank you.

Jordan Levy: As you know is a world leader in precision ceramic production.

Speaker Change: Like to ask a question. Please press star one on your telephone keypad.

I would like to withdraw your question simply press Star one again please.

Jordan Levy: The LNG supply locked into both the electric vehicle and consumer electronics markets.

Speaker Change: Please ensure that you are not on speaker phone and that your phone is not on mute when called upon thank you.

Jordan Levy: And they have a global presence in high volume ceramic manufacturing so they are.

Jordan Levy: Your first question comes from Jordan Levy with Truist Securities. Your line is open. Afternoon, all appreciate the commentary on the Murata deal here.

Not specified: Your first question comes from Jordan Levy with Truth Securities. Your line is open.

Jordan Levy: Well, Glenn ordinary for us too damn high volume production.

Not specified: Austin and I'll appreciate the commentary on the Marotta deal here, maybe just to dive a little bit more.

Siva Sivaram: Maybe just to dive a little bit more in on that is the thought that they they kind of step in after you've worked out some of the commercialization IP and pathway for separator production or are they going to be kind of an integral part of that, that kind of trajectory? Jordan, Murata, as you know, is a world leader in precision ceramic production. They already supply a lot into both the electric vehicle and consumer electric vehicles. and they have a global presence in high volume ceramic manufacturing. So they are a a well-planned partner for us to ramp high-volume production.

Jordan Levy: The excitement that they showed when they came here to look at.

Siva Sivaram: and that has been very encouraging to follow.

Not specified: In the quarter.

Not specified: The next step in after you've worked out some of the commercialization pathway for separately conducting or are they going to be kind of an integral part of that.

Jordan Levy: The Cobra technology was one of those things to do we hold and we were working together and they see the possibilities of a.

Jordan Levy: Thanks so much.

Winnie Dong: The next question comes from Winnie Dong with Deutsche Bank. Your line is open. Thanks for taking my question.

Jordan Levy: High volume citizens ceramic production together, so we expect them to be a very integral part of our supply chain as we develop the ecosystem the <unk> ecosystem as it grows up.

Not specified: That kind of trajectory.

Not specified: Yeah.

Not specified: Jordan.

Not specified: As you know is a world leader in <unk>.

Winnie Dong: First question is, I was wondering if we can provide an update on the work that you guys are doing with PowerCode itself. Last time, I believe you mentioned, you know, there are some personnel devoted to the joint effort, both on QS and PowerCode. So I'm just wondering if you can provide an update on that.

Not specified: <unk> ceramic production.

Not specified: The LNG supply a lot into the air.

Jordan Levy: It'll be a big positive.

Jordan Levy: The only other thing I could add is that in addition to.

Not specified: Electric vehicle and consumer electronics markets.

Jordan Levy: The speed and the capital efficiency with which we partner with Murata.

Not specified: And they have a global presence in high volume.

Not specified: Manufacturing so they are.

Winnie Dong: And then my second question is on the initial phase of the agreement with Morada, what is included in this first phase? And then for future partnership purposes in subsequent phases, I'm just curious how that partnership will look like. Is it going to be more of a three ring relationship between Morada and, you know, future customers, or are they going to be essentially like a supplier to you guys? Thank you.

Jordan Levy: Working with partners as part of the broader <unk> ecosystem adds value to our core technology platform as more global players invest resources and know how into our ecosystem.

Not specified: Well land partner for Us too damn high volume production.

Siva Sivaram: The excitement that they showed when they came here to look at the COBRA technology was one of those things to behold. I mean, we were working together and they see the possibilities of high volume, thin ceramic production together. So we expect them to be a very integral part of our supply chain as we develop the ecosystem. The QS ecosystem, as it grows up, there'll be a big The only other thing I could add is that in addition to the speed and the capital efficiency with which we partner with Murata, working with partners as part of the broader QS ecosystem adds value to our core technology platform.

Not specified: The excitement that they showed when they came here to look at.

Platform becomes more robust and ultimately more valuable.

Not specified: Cobra technology was one of those things to do we hold them, we were working together and they see the possibilities of.

Jordan Levy: Super helpful. Appreciate it.

Jordan Levy: Maybe just a quick follow up on the on any.

Not specified: High volume citizens ceramic production together, so we expect them to be a very integral part of our supply chain as we develop the ecosystem the <unk> ecosystem as it grows up.

Jordan Levy: Incremental licensing deals are recognized there's nothing to announce today, but.

Siva Sivaram: We need, on the first question. on the power co part. You come by our offices, you'll see a whole bunch of Germans walking around in the labs working closely with us. We are increasing the automation and efficiency of the line and integrating COBRA into it. And that integrated line with COBRA is what is going to be used for B1 samples that we will be shipping later. And they are working with us day in and day out in increasing the capability of this line. And that collaboration is going very, very well. As you saw, we had some of the highest levels of people from Volkswagen and PowerCo spent time with.

Jordan Levy: Okay.

Speaker Change: Gage the conversations you're having have you seen any uptick in.

It's fundamental.

Not specified: It'll be a big part of it.

Speaker Change: The potential customer base or anything with all the geopolitical environment in the third channel.

Not specified: The only other thing I could add is that in addition to.

Not specified: The speed and the capital efficiency with which we partner with Murata.

Speaker Change: This is a really important issue that are going to do.

Not specified: Working with partners as part of the broader <unk> ecosystem adds value to our core technology platform as more global players invest resources and know how into our ecosystem.

Speaker Change: In gym ever since we announced that we are a technology licensing company.

Jordan Levy: As more global players invest resources and know-how into our ecosystem, the platform becomes more robust and ultimately more valuable. super helpful, appreciate that.

Speaker Change: And.

Speaker Change: When we started talking to our customers.

Not specified: Platform becomes more robust and ultimately more valuable.

Speaker Change: This is a real uptick in the urgency with which they want.

Not specified: Super helpful. Appreciate it.

Speaker Change: Seed.

Jordan Levy: And then maybe just a quick follow up on the on any incremental IP licensing deals. I recognize there's nothing to announce today. But just to kind of gauge the conversations you're having, have you seen any, you know, uptick in excitement on your potential customer base or anything with all the geopolitical environment and tariffs?

Speaker Change: And the excitement at the technology.

Not specified: Maybe just a quick follow up on the on any.

Speaker Change: Overall, there may be.

Not specified: Incremental licensing deals are lucky knows there's nothing to announce today, but yes.

Speaker Change: Choppy waters.

Speaker Change: In the in the industry, but our interactions had exactly to the country.

Not specified: Kind of.

Not specified: Gage the conversations you're having have you seen any uptake.

Speaker Change: We see them really wanted to partner with us and develop these long term relationship where we can develop.

Not specified: Kick in.

Siva Sivaram: And they are continuing to express their strong support in the joint work that's going on between the.

Not specified: It's fun.

Not specified: Potential customer base or anything with all the geopolitical environment and third channel.

Speaker Change: Bespoke solutions for their roadmap needs.

Siva Sivaram: And Jordan, this is a fairly important issue that we are In general, ever since we announced that we are a technology licensing company, And when we started talking to our customers. There is a real uptick in the urgency with which they want to proceed and the excitement at the technology. Overall, there may be Choppy Waters in the industry, but our interactions are exactly to the contrary. We see them really want to partner with us and develop these long-term relationship where we can develop bespoke solutions for their roadmap. And that has been very encouraging to follow.

Siva Sivaram: coming to your question on how partnerships such as Murata are going to evolve over time. Each of this is going to be unique. There is not going to be a one-size-fits-all relationship. As we look at Ceramic Manufacturers, Equipment Manufacturers, Materials Manufacturers, and Cell Manufacturers with our OEM partners. Each of them is going to have a relatively specific agreement that we'll be developing to strengthen the entire supply chain so that you can take this truly differentiated battery platform and deliver to the end customer. And we want to get there as fast as possible in the most efficient way possible.

Jordan: Hey, Jordan. This is a fairly important issue that has been interesting.

Speaker Change: And that has it.

Speaker Change: <unk> been very interesting to follow.

Jordan: In general the ever since we announced that we are a technology licensing company.

Speaker Change: Yeah.

Speaker Change: Thanks, so much.

Speaker Change: The next question comes from when he done with Deutsche Bank. Your line is open.

Jordan: And when.

Jordan: When we started talking to our customers.

Jordan: There is a real uptick in the urgency with which they wanted to.

Speaker Change: Oh, Thanks for taking my question first question is on I was wondering if you can prevent okay and the work that you guys are doing with arc home phone Lachlan I believe you mentioned, there's some personnel to bolt on to that can you get that both of them correctly on power coastal just one thing to keep in mind that.

Jordan: Seed.

Jordan: And the excitement at the technology.

Jordan: Overall, then maybe.

Choppy waters.

Jordan: In the in the industry, but our interactions had exactly to the contrary, we see them really wanted to partner with us and develop these long term relationship where we can develop.

Speaker Change: And then my second question is on the.

Speaker Change: Initial aim of ingredient.

Siva Sivaram: That's why we are developing this QS ecosystem. in a broad-based fashion and looking at partners wherever they are to come and work with.

Speaker Change: Why not.

Jordan: Bespoke solutions for their roadmap needs.

Speaker Change: What is included in both periods Chi and then for future partnerships.

Jordan: And that has.

Speaker Change: In subsequent 8-K.

Jordan: <unk> been very encouraging to follow.

Speaker Change: I'm just curious how about ownership will look like is it going to be more of a three way relationship between <unk>.

Jordan: Thanks, so much.

Winnie Dung: The next question comes from Winnie Dung with Deutsche Bank. Your line is open. Thanks for taking my question. First question is, I was wondering if we can provide an update on the work that you guys are doing with PowerCode itself. Last time, I believe you mentioned, you know, there's some personnel devoted to the joint effort, both on QS and PowerCode. So I'm just wondering if you can provide an update on that.

Speaker Change: The next question comes from Winnie Dong with Deutsche Bank. Your line is open.

Unknown Executive: Okay, see you next.

Speaker Change: And we will keep your customers or a day from the prior to that.

Mark Delaney: Sorry, the next question comes from Mark Delaney with Goldman Sachs. Your line is open. Good afternoon. Thanks for taking my question.

Winnie Dong: Oh, Thanks for taking my question first question is on I was wondering if you can prevent okay and what that you guys are talking about Park Hotel Lachlan I believe you mentioned you know there's one person young people that choose to go get that correctly.

Speaker Change: Okay.

Speaker Change: Many on the first question.

Speaker Change: On the political partnership.

Siva Sivaram: First ones on the competitive landscape, and I'm going to get your latest thoughts on where that stands. And given some of the technology progress announced in recent months from some of the LFP companies like BYD and CATL around progress they're making with very fast charging capabilities, so called five minute batteries, has that affected your views of the competitive landscape and what you're seeing from Additional Perspective Automotive Customer. Mark, yes, we've been very closely following along with this series of announcements from BYD and CATL on these LFP batteries from China. Now, first and foremost, these are giants of companies that have really worked hard to push the envelope on lithium-ion, conventional lithium-ion batteries capability.

Speaker Change: If you can lay out offices, you'll see a whole bunch of Germans walking around in the labs working closely with us.

Speaker Change: We are.

Speaker Change: I'll close with just one thing to keep in mind that.

Speaker Change: Increasing the automation and the efficiency of the line.

Winnie Dung: And then my second question is on the initial phase of the agreement with Murata. What is included in this first phase? And then for future partnership purposes in subsequent phases, I'm just curious how that partnership will look like. Is it going to be more of a three ring relationship between Murata, you and, you know, future customers? Or are they going to be essentially like a supplier?

Speaker Change: And then my second question is on the initial.

Speaker Change: And integrating <unk> into it and that integrated line with Cobra is what is going to be used for.

Speaker Change: Initial a convenient with Nevada.

Speaker Change: What is included in both Turkey, and then for future partnerships.

Speaker Change: Meanwhile, the samples that we would be shipping les.

Speaker Change: Subsequent Inc.

Speaker Change: Later, and they are working with us day in and day out in increasing the capability of this line.

Speaker Change: I'm just curious how about ownership will look like is it going to be more of a three way relationship between well argue and you know ctrip.

Speaker Change: And that collaboration is going very very well as you saw we.

Speaker Change: Keep your customers or they can be a supplier to that okay.

Speaker Change: We had some of the highest levels of people from Volkswagen and political spending time with us.

Siva Sivaram: We need, on the first question. on the PowerCore pod. and Mayor offices.

Speaker Change: Many on the first question.

Speaker Change: On the political partnership.

Siva Sivaram: They have pushed it farther and farther.

Speaker Change: If you can lay out offices, you'll see a whole bunch of Germans walking around in the labs working closely with us.

Speaker Change: And they are continuing to express their strong support in the joint work that's going on between the two companies.

Siva Sivaram: Thank you. whole bunch of Germans walking around in the labs working closely with us. We are. increasing the automation and efficiency of the line. and Integrating COBRA into it. And that integrated line with COBRA is what is going to be used for B1 samples that we will be shipping later. And they are working with us day in and day out in increasing the capability of this. And that collaboration is going very, very well. As you saw, we had some of the highest levels of people from Volkswagen and PowerCo spend time with and they are continuing to express their strong support in the joint work that's going on between.

Siva Sivaram: However, on these specific announcements, there is a lot of data that is still lacking, so we don't get full information. What we do see, however, is we have a no compromise solution in the QS platform. The QSC-5, with respect to safety, cycle life, energy density, power, cost, fast charge, range, put them all together, this is the only no-compromise solution out there. And you can see that by the excitement from the large OEM customers who are coming into our shop and working with us. So we are following these developments from China carefully. We are taking them very seriously, but we are still very confident on our lithium metal anode free.

Speaker Change: Coming to your question on how.

Speaker Change: We are.

Speaker Change: Increasing the automation and the efficiency of the line.

Speaker Change: Partnerships.

Speaker Change: Such as well that are going to evolve overtime. Each of this is going to be unique.

Speaker Change: And integrating <unk> into it and that integrated line with Cobra is what is going to be used for <unk>.

Speaker Change: There's not going to be a one size fits all relationship.

Speaker Change: As we look at.

Speaker Change: <unk> samples that we would be shipping.

Speaker Change: Ceramic manufacturers equipment manufacturers materials manufacturers and certain manufacturers.

Speaker Change: Later, and they are working with us day in and day out in increasing the capability of this line.

Speaker Change: I M partners each of them is going to have a relatively specific.

Speaker Change: And that collaboration is going very very well as you saw we.

Speaker Change: Agreement that we will be developing to strengthen the entire supply chain so that.

Speaker Change: We had some of the highest levels of people from Volkswagen and political spending time with us.

Speaker Change: You can dig this truly differentiated battery platform and deliver to their end customers and we wanted to get that as fast as possible in the most efficient way possible. That's why we are developing as qf's ecosystem.

Speaker Change: And they are continuing to express their strong support in the joint work that's going on between the two companies.

Siva Sivaram: As you can see, there is no anode. We don't have to think about having to find graphite or anything else to put on that side. The best is to not have an anode, and we have that as well. We feel confident even in light of all this competition. on the strength of our art.

Siva Sivaram: coming to your question on how partnerships such as Murata are going to evolve over time. Each of this is going to be unique. There is not going to be a one-size-fits-all relationship. As we look at Ceramic Manufacturers, Equipment Manufacturers, Materials Manufacturers, and Cell Manufacturers with our OEM partners. Each of them is going to have a relatively specific agreement that we'll be developing to strengthen the entire supply chain so that We can take this truly differentiated battery platform and deliver to the end customer. And we want to get there as fast as possible in the most efficient way possible.

Speaker Change: Coming to your question on how.

Speaker Change: In a broad based fashion and looking at.

Speaker Change: Partnerships, such as well that's going to evolve over time each of this is going to be unique.

Speaker Change: Partners wherever they are.

Speaker Change: Come and work with us.

Speaker Change: There is not going to be a one size fits all relationship.

Speaker Change: Perfect.

Speaker Change: As we look at.

Speaker Change: Alright. The next question comes from Mark Delaney with Goldman Sachs. Your line is open.

Speaker Change: Ceramic manufacturers equipment manufacturers materials manufacturers and certain manufacturers.

Mark Delaney: appreciate all the thoughts on that.

Mark Delaney: Yes. Good afternoon. Thanks for taking my questions first one is on the competitive landscape and I wanted to get your latest thoughts on where that stands and given some of the technology progress announced in recent months from somebody else see companies like BYD and C. A T L around progress they are making with very fast charging capabilities.

Siva Sivaram: My other question was on the potential collaboration with Murata. And do you think customers that are licensing your technology can cost effectively scale to higher volume production of the separator for series production vehicles if you don't come to an agreement with Murata? Or is this just about making it faster and more efficient than you'd previously been planning? precisely the latter.

Speaker Change: I M partners each of them is going to have a relatively specific.

Speaker Change: Agreement that we will be developing to strengthen the entire supply chain so that.

Speaker Change: You can dig this truly differentiated battery platform and deliver to their end customers and we wanted to get there as fast as possible in the most efficient way possible. That's why we are developing as qs's ecosystem.

Mark Delaney: So called five minute batteries has that affected your views at the competitive landscape and what you're seeing from.

Siva Sivaram: That's why we are developing this QS ecosystem. in a broad-based fashion and looking at partners, wherever they are, to come and work together.

Speaker Change: Additional perspective automotive customers.

Siva Sivaram: So you can see that we are a technology company. First and foremost, we produce a lot of intellectual property. So our first job is to make sure that intellectual property is well protected. and we are able to scale that into a product very quickly. We continue to develop the core technology. We develop the COBRA process. We develop this highly scalable process. that makes us even more incentive to go find partners who are very good, high volume manufacturers in that specific area. That allows us both to combine our skills and get into market fast. This is the, as you would see, the network effect of us having multiple similarly minded, similarly motivated, well aligned partners trying to take this core intellectual property and get into high volume.

Speaker Change: In a broad based fashion and looking at that.

Speaker Change: Hey, Mark.

Speaker Change: Yes, we've been very closely following along with the series of announcements from BYD and cap on these feedback from.

Speaker Change: Partners wherever they are.

Speaker Change: To come in and work with us.

Speaker Change: Yeah.

Unknown Executive: We'll say see you next.

Speaker Change: Perfect.

Speaker Change: From China.

Speaker Change: First and foremost these James a company that has really worked hard to push the envelope on lithium ion conventional lithium ion batteries capabilities, they have pushed it farther and farther.

Mark Delaney: Sorry, the next question comes from Mark Delaney with Goldman Sachs. Your line is open. Good afternoon. Thanks for taking my questions.

Speaker Change: Alright. The next question comes from Mark Delaney with Goldman Sachs. Your line is open.

Speaker Change: Yes. Good afternoon. Thanks for taking my questions first one is on the competitive landscape and hoping to get your latest thoughts on where that stands and given some of the technology progress announced in recent months from somebody LFG companies like BYD and C. A T L around progress theyre, making with very fast charging capabilities so called.

Siva Sivaram: First one's on the competitive landscape and hoping to get your latest thoughts on where that stands. And given some of the technology progress announced in recent months from some of the LFP companies like BYD and CATL around progress they're making with very fast charging capabilities, so called five minute batteries, has that affected your views of the competitive landscape and what you're Additional perspective on Mark. Yes, we've been very closely following along with this series of announcements from BYD and Capital on these LFP batteries from China. Now, first and foremost, these are giants of companies that have really worked hard to push the envelope on lithium-ion, conventional lithium-ion batteries capability.

Speaker Change: However on these specific announcements there is a lot of data that is still lacking so we don't get full information on it.

Speaker Change: What can we do see you have a letter is we have and no compromise solution in that <unk> platform.

Speaker Change: Five minute batteries has that affected your views or the competitive landscape and what you're seeing from.

Speaker Change: <unk> with respect to safety cycle life.

Speaker Change: Additional perspective automotive customers.

Speaker Change: Energy density our cost fast charge range put them altogether. This is the only no compromise solution are bad and you can see that by the excitement from the large OEM customers, who are coming into our shop and working with us.

Mark Delaney: Hey, Mark.

Mark Delaney: Yes, we've been very closely following along with the series of announcements from BYD and cap on these feedback from China.

Siva Sivaram: That is the.

Siva Sivaram: understood and I guess just one last one before I turn it over. You know, as you're exploring this potential collaboration with Murata, is that something you expect PowerCo to be involved with as well? Or is this just between you and Murata and anything with with PowerCo would be separate from that?

Mark Delaney: First and foremost these giant is a company that has really worked hard to push the envelope on lithium ion conventional lithium ion batteries capabilities, they have pushed it farther and farther.

Speaker Change: So we are following these developments from China carefully.

Speaker Change: We are taking them very seriously, but we are still very confident on our lithium metal.

Siva Sivaram: They have pushed it farther and farther.

Siva Sivaram: Thanks. So this contract, this development arrangement is between Quantumscape and Murata Manufacturing. That does not mean we don't keep our OEM partners fully informed of what we are doing and PowerQo is fully supportive of what we are trying to achieve over here. as you probably have seen in our strategic blueprint.

Mark Delaney: However on these specific announcements there is a lot of data that is still lacking so we don't get full information on it.

Siva Sivaram: However, on these specific announcements, there is a lot of data that is still lacking, so we don't get full information. What we do see, however, is we have a no compromise solution in the QS platform. The QSC-5 with respect to safety, cycle life, energy density, power, cost, fast charge, range, put them all together, this is the only no-compromise solution out there. And you can see that by the excitement from the large OEM customers who are coming into our shop and working with us. So we are following these developments from China carefully. We are taking them very seriously, but we are still very confident on our lithium metal anode free.

Speaker Change: Annual free.

Speaker Change: As you can see that as there is no analog we don't have to think about having to find graphite.

Mark Delaney: What do we do see is we have and no compromise solution in that <unk> platform.

Speaker Change: Anything else that went on that side.

Speaker Change: The best is to act knocked out of that in already and we have that guidance solution. So.

Mark Delaney: That USD five with respect to safety cycle life.

Speaker Change: We feel confident even in light of all of these companies do announcements on the strength of our offering.

Mark Delaney: Energy density power cost fast charge range put them altogether. They this is the only no compromise solution are bad and you can see that by the excitement from the large OEM customers, who are coming into our shop and working with us.

Siva Sivaram: In our global ambition, it is important that we do have these kinds of partners around the world who are working closely.

Speaker Change: I appreciate all the thoughts on that my other question was on the potential cooperation with Murata.

Jed Dorsheimer: And our OEM partners actually are very encouraged that we are putting this global QS ecosystem Your next question comes from Jed Dorsheimer with William Blair. Your line is open. Hi, you have Mark Shooter on for you. Congrats on the progress and collaboration with Murata.

Speaker Change: And do you think customers that are licensing your technology can cost effectively scale to higher volume production of the separator for series.

Mark Delaney: So we are following these developments from China carefully.

Mark Delaney: We are taking them very seriously, but we are still very confident on our lithium metal.

Speaker Change: Just curious production vehicles, if you don't come to an agreement with Murata or is this just about making it faster and more efficient than you'd previously been planning. Thanks.

Speaker Change: Annual free.

Siva Sivaram: As you can see, there is no anode. We don't have to think about having to find graphite or anything else to put on that side. The best is to not have an anode, and we have that as a solution. We feel confident even in light of all this competition. on the strength of our art.

Speaker Change: As you can see that there is no analog we don't have to think about having to find graphite.

Speaker Change: Precisely the ladder. So you can see that we are a technology company first and foremost we produce a lot of intellectual property solid first job is to make sure that intellectual property is well protected.

Speaker Change: As to what on that side.

Speaker Change: The best is not to have an anode and and we have that as a solution. So we feel confident even in light of all of these companies do announcements on the strength of our offering.

Mark Shooter: As you think through other collaborations, especially for so many Would Powerco be open to manufacturing for non VW customers? Assuming no, how are you thinking through finding other cell manufacturing supply and are customers China sensitive? Mark, we look at this in a fairly systematic fashion. We look at all opportunities.

Speaker Change: And we are able to scale that into a product very quickly.

Speaker Change: We continue to develop the core technology, we develop the kovar a process we develop this highly scalable process.

Speaker Change: Yeah.

Speaker Change: I appreciate all the thoughts on that my other question was on the potential collaboration with Murata and do you think customers that are licensing your technology can cost effectively scale to higher volume production of the separator for series.

Mark Delaney: appreciate all the thoughts on that.

Unknown Executive: My other question was potential collaboration. Murata.

Speaker Change: Yeah.

Speaker Change: That makes us even more incentive to go find partners, who are very good high volume manufacturers in that specific area that allows us both to combined skills and getting to market faster. This is that as you will see that the network effect of having multiple.

Unknown Executive: Do you think customers that are licensing your technology can cost-effectively scale to higher-reliant production of the separator for series production vehicles if you don't come to an agreement with Murata, or is this just about making it faster and more efficient than you'd previously thought? Unknown Executive, Yan Dong, Kevin Hettrich, Henry Roberts, Jordan Levy, Siva Sivaram, Mark Shooter, Kevin Hettrich, Henry Roberts, Jordan Levy, Siva Sivaram, Mark Shooter, Unknown and we're able to scale that into a product very quickly. We continue to develop the core technology. We develop the COBRA process. We develop this highly scalable process.

Speaker Change: Just curious production vehicles, if you don't come to an agreement with Murata or is this just about making it faster and more efficient than you had previously been planning. Thanks.

Siva Sivaram: And by the way, I will not speak for PowerCo what they would or they would not do. We do look at other large OEMs, auto OEMs who do want to make sales. And we are not ruling out discussions with other cell manufacturers, equipment manufacturers. materials manufacturers, and ceramic manufacturers all across the spectrum. So this is part of what we'll be looking at for various specific applications.

Speaker Change: Uh huh.

Speaker Change: Similarly minded similarly motivated well aligned partners trying to take this coding Victor property and get it into high volume doctors.

Speaker Change: Understood and I guess, just one last one before I turn it over.

Speaker Change: And we're able to scale that into a product very quickly.

Speaker Change: As you are exploring a potential collaboration with.

Speaker Change: We continue to develop the core technology, we develop the Cobra process. We developed this highly scalable process.

Speaker Change: With Marotta is that something you expect telco to be involved with as well or does this just between you and Robert.

Speaker Change: That makes us even more incentive to go find partners, who are very good high volume manufacturers in that specific area that allows us both to combine our skills and getting to market fast. This is that as you will see that the network effect of us having.

Siva Sivaram: that makes us even more incentivized to go find partners who are very good, high-volume manufacturers in that specific area. That allows us both to combine our skills and get into market fast. This is, as you would see, the network effect of us having multiple similarly minded, similarly motivated, well-aligned partners trying to take this core intellectual property and get into high-volume.

Speaker Change: English with powerful would be separate from that thanks.

Speaker Change: So this contract this development arrangement is between quantum scale and manufacturing.

Siva Sivaram: That was very helpful. Thank you. Tesla last night and Elon Musk, he mentioned that the best anode is no anode at all. You know, to me, that sounds like he's referring to an anode-less design, just like Quantumscape's. But it was in reference to, you know, supply chain stress and how China dominates the graphite market. How has customer conversation developed around that and the supply chain and tariffs since April 2? Our architecture has been anode. from the time we have disclosed it out. Anode-free architecture we have always felt is the right way to build a high-performing battery.

Speaker Change: That does not mean, we don't keyboard OEM partners fully informed of what we're doing and Oracle is fully supportive of what we are trying to achieve over here.

Speaker Change: <unk> multiple.

Speaker Change: Similarly minded similarly motivated well aligned partners trying to dig this caught intellectual property and get it into high volume that is the plan.

Speaker Change: And.

Speaker Change: As you probably have seen in our strategic blueprint.

Speaker Change: In our global ambition it is important that.

Unknown Executive: That is the problem.

Speaker Change: We do have these kinds of partners around the world, who are working closely with us.

Speaker Change: Understood and I guess, just one last one before I turn it over.

Siva Sivaram: Unknown Speaker And I guess just one last one before I turn it over. As you're exploring this potential collaboration. Murata. Is that something you expect PowerCode to be involved with as well or?

Speaker Change: And <unk>.

Speaker Change: You're exploring.

Speaker Change: Our OEM partners actually are very encouraged that we are putting this global.

Speaker Change: Potential collaboration with.

Speaker Change: With Marotta is that something you expect power coding to be involved with as well or does this just between you and marotta and anything but with powerful it would be separate from that thanks.

Speaker Change: Q S ecosystem together.

Speaker Change: Thank you.

Siva Sivaram: So this contract, this development arrangement. and Murata Manufacturing. as you probably have seen in our strategic blueprint. In our global ambition, it is important that we do have these kinds of partners around the world who are working closely with us.

Speaker Change: So this contract this development arrangement is between quantum scheme and without that manufacturing.

Siva Sivaram: We have been very careful in making sure that the intellectual property around it is well protected in the way we will do. not having graphite has always been a strength of ours and and the best way. have a part is not to have that at all, not to have that. Having said that, overall, you saw Kevin's answer earlier with respect to tariff. We have marginal impact from tariffs in our current... Our method of developing a platform and working globally where we are not the ones moving material around is the right way for us to develop, create shareholder value.

Speaker Change: Your next question comes from Jed <unk> with William Blair. Your line is open.

Speaker Change: That does not mean, we don't keyboard OEM partners fully informed of what we're doing and Oracle is fully supportive of what we are trying to achieve over here.

Speaker Change: Okay.

Jed: Hi, Mark shoot around project, our shimer, congrats on the progress and collaboration with Murata.

Jed: As you think through other collaborations, especially for cell manufacturing.

Speaker Change: And.

Speaker Change: As you probably have seen in our strategic blueprint.

Speaker Change: Good power Kobe open to manufacturing for non VW customers.

Speaker Change: In our global ambition it is important that.

Speaker Change: Assuming no how are you thinking through finding other cell manufacturing supply and our customers China sensitive.

Speaker Change: We do have these kinds of partners around the world who are we.

Speaker Change: Working closely with us.

Jed Dorsheimer: and our OEM partners actually are very encouraged that we are putting this global QS ecosystem Your next question comes from Jed Dorsheimer with William Blair. Your line is open.

Speaker Change: And our OEM partners actually are very encouraged that we are putting this global.

Speaker Change: Mark.

Speaker Change: Look at this.

Speaker Change: In a fairly systematic fashion.

Speaker Change: Q S ecosystem together.

Speaker Change: We look at all opportunities and by the way I will not speak for Oracle, what they would that they would not do.

Speaker Change: Thank you.

Speaker Change: Your next question comes from Jed <unk> with William Blair. Your line is open.

Siva Sivaram: We are very careful in making sure that our partners, our manufacturing and OEM partners know that the technology we are developing is not dependent on any one particular hard to obtain material. For example, the separator is made of earth abundant material. So in general, we are watching the various policy changes carefully. But I think our edge will continue to be in us developing new innovations and moving the frontier forward and making sure our partners are coming along.

Speaker Change: We do look at other large Oems auto Oems, who do want to make cells.

Speaker Change: Okay.

Mark Shooter: Hi, I'm Mark Shooter on project Dorsheimer. Congrats on the progress and collaboration with Morata.

Speaker Change: Alright.

Speaker Change: And we are not ruling out discussions with other cell manufacturers equipment manufacturers.

Speaker Change: Mark shoot around project our genre congrats on the progress and collaboration Corrado.

Mark Shooter: As you think through other collaborations, especially for so many Would Powerco be open to manufacturing for non VW customers? Assuming no, how are you thinking through finding other cell manufacturing supply and are customers China-centric? Mark, we look at this in a fairly systematic fashion.

Speaker Change: As you think through other collaborations, especially for cell manufacturing Wood tower Kobe opened manufacturing for non VW customers.

Speaker Change: Materials manufacturers and ceramic manufacturers all across the spectrum. So this is part of what we were looking at various specific applications.

Speaker Change: Assuming no how are you thinking through finding other cell manufacturing supply and our customers China sensitive.

Speaker Change: Yeah.

Speaker Change: That's very helpful. Thank you.

Speaker Change: Mark.

Speaker Change: Yeah.

Speaker Change: So last night and you know on masks you mentioned is that the best anode is no entered at all.

Speaker Change: Look at this.

Speaker Change: In a fairly systematic fashion.

Kevin Hettrich: Kevin, you want to add anything to that? No, it is a view we resoundingly agree with. The addition of the anode in a conventional cell, it adds weight and volume. It limits the power performance, specifically the ability to charge. It adds expensive materials to buy, you have to transform it, and in today's environment adds risk to the supply chain. It's one of the major sources of life loss, and it's chock full of flammable materials. Eliminating it is what leads to the no-compromise solution that we're offering that is superior on all of these dimensions at the same time.

Speaker Change: We look at all opportunities that and by the way I will not speak for Oracle, what they would do.

Siva Sivaram: We look at all opportunities, and by the way, I will not speak for PowerCo what they would or they would not do. We do look at other large OEMs, auto OEMs who do want to make sales. And we are not ruling out discussions with other cell manufacturers, equipment manufacturers. materials manufacturers, and ceramic manufacturers all across the spectrum. So this is part of what we'll be looking at for various specific.

Speaker Change: Excuse me that foundries or furniture and entered this design just like Qantas case, but it was in reference to your supply chain stress and how China dominates the graphite market.

Speaker Change: They would not do.

Speaker Change: We do look at other large Oems auto Oems, who do want to make cells.

Speaker Change: Has how has customer conversations developed around that and the supply chain and tariffs that's April 2nd.

Speaker Change: And we are not ruling out discussions with other cell manufacturers equipment manufacturers.

Speaker Change: Our architecture has been annulled free from the time, we have disclosed it outside.

Speaker Change: Materials manufacturers and ceramic manufacturers all across the spectrum. So this is part of what we were looking at for various specific applications.

Speaker Change: Annual free architecture to be able all waste.

Speaker Change: Is that right way to build a high performing battery.

Speaker Change: Yeah.

Siva Sivaram: So we very much agree with the viewpoint, and that's core to our technology platform. And it's a platform, we are the clear world leaders. Thank you guys.

Mark Shooter: That's very helpful. Thank you.

Speaker Change: That's very helpful. Thank you.

Speaker Change: We have been very careful in making sure that the intellectual property around it as well predicted in the way we build it.

Speaker Change: Right.

Unknown Executive: Tesla last night and Elon Musk, he mentioned that the best anode is no anode at all. To me, that sounds like he's referring to an anode that's designed just like Quantumscape. But it was in reference to, you know, supply chain stress and how China dominates the graphite market.

Speaker Change: So last night and you know our mask you mentioned is that the best anode is no entered at all.

Not having graphite has always been a strength of ours.

Speaker Change: And the best domain.

Unknown Executive: If I can sneak one more in here.

Speaker Change: Have a box does not have that did not have that in order to call.

Siva Sivaram: Siva, I noticed that the language is a bit broader in your strategic blueprint about applications outside of the EVs. Are you guys opening up to potential other high value applications outside of the EVs and if anything on the horizon? As you know, our first focus is on the automotive sector. That is the highest volume sector out there. But we are producing a very high performance battery that is a no compromise battery that that is useful across all fronts. So applications such as the rapid growth in data centers. Evolving Aviation Applications. These are all an unconsumed electronics.

Speaker Change: Having said that overall you saw Kevin's answer early and with respect to tariffs.

Siva Sivaram: How has customer conversation developed around that and the supply chain and tariffs since April 2nd? Our architecture has been an from the time we have disclosed. anode-free architecture we have always felt is the right way to build a high-performing battery. We have been very careful in making sure that the intellectual property around it is well protected in a way we will not. not having graphite has always been a strength of ours and the best way. to have a part is not to have that at all, not to have that.

Speaker Change: Has how has customer conversations developed around that.

Speaker Change: We have a marginal impact from tariffs.

Speaker Change: Apply chain in tariffs that's April 2nd.

Speaker Change: Our architecture has been annulled free from the time, we have disclosed it outside.

Speaker Change: Our current annual operating plan.

Speaker Change: And.

Speaker Change: Our method of developing a platform and working globally.

Speaker Change: Anode free architecture be able all waste.

Speaker Change: We are not the ones moving materials around is the light green for us to develop create shareholder value.

Speaker Change: Is that right way to build a high performing battery.

Speaker Change: We have been very careful in making sure that the intellectual property around it is well protected and the way we build it.

Speaker Change: We are very careful in making sure that our partners our manufacturing and OEM partners know that the technology. We are developing is not dependent on any one particular hard to obtain materials. For example, that's separated is made up earth abundant material.

Speaker Change: Not having graphite has always been a strength of ours.

Speaker Change: And the best domain.

Speaker Change: Have a box does not have that did not have that in order to call.

Siva Sivaram: These are all very important.

Siva Sivaram: But as a company, we are focused today on automation. Thank you for keeping our eyes open on these new applications.

Siva Sivaram: Having said that, overall, you saw Kevin's answer earlier with respect to tariff. We have marginal impact from tariffs in our current annual operation. Our method of developing a platform and working globally, where we are not the ones moving material around, is the right way for us to develop, create shareholder value. We are very careful in making sure that our partners, our manufacturing and OEM partners know that the technology we are developing is not dependent on any one particular hard to obtain material. For example, the separator is made of earth abundant material. So in general, we are watching the various policy changes carefully.

Speaker Change: Having said that overall you saw kevin's answer earlier with respect to tariffs.

Speaker Change: Yeah.

Speaker Change: So in general we are watching the <unk>.

Speaker Change: Radius policy changes carefully.

Speaker Change: We have a marginal impact from tariffs in our current.

Speaker Change: But I think our eggs will continue to be in us developing new innovation and moving the frontier forward and making sure that our partners are coming along with us.

Speaker Change: Total operating plan and.

Joe Spak: The next question. comes from Joe Spak of UBS. Your line is open. Thanks. Good afternoon. I wanted to circle back to Mark's question a little bit on the sort of competitive environment and really sort of better understand what's going on in your, you know, sea level sort of discussions because, you know, to his point, and as you sort of alluded to, there's a lot of fast moving progression going on with those two players in terms of density, fast charging, you know, sodium ion, you name it, a lot of which have the same or similar benefits to what you can offer.

Speaker Change: Our messing it up developing a platform and working globally.

Speaker Change: And we are not the ones moving materials around is the right way for us to develop create shareholder value.

Speaker Change: Kevin you want to add anything to that no. It is it is a view we.

Kevin Hetrick: Resoundingly agree with.

Speaker Change: We are very careful in making sure that our partners our manufacturing and OEM partners know that the technology. We are developing is not dependent on any one particular.

Speaker Change: The addition of the NTT anode and a conventional cell it adds weight and volume.

Kevin Hetrick: Limits the power performance, specifically the ability to charge.

Kevin Hetrick: Pensive materials by up to transform it and in today's environment adds risk to the supply chain. It's one of the major sources of life loss and it's chock full of flammable materials, eliminating it is what leads to the no compromise solution that we're offering is superior on all of these dimensions at the same time so we.

Speaker Change: Hard to obtain materials. For example, that's separated is made up earth abundant materials.

Speaker Change: So in general we are watching the.

Speaker Change: Various policy changes carefully.

Siva Sivaram: But I think our edge will continue to be in us developing new innovations and moving the frontier forward and making sure our partners are coming up.

Speaker Change: But I think our eggs will continue to be in us developing new innovation and moving the frontier forward and making sure that our partners are coming along with us.

Siva Sivaram: So I guess what I'm trying to understand is, Is this giving them? Any more pause in terms of sort of trying to sign up for a certain technology until they see how some of these other developments play out? Or, or they you know, is there been any change in the tone of this conversation? Yeah, so number one, the fact that the two Chinese players are intensely competitive with each other is a good thing for the industry. And that's always However, if you listen to the whole thing carefully, No one is promising any new fundamental technology.

Kevin Hetrick: Very much agree with the.

Kevin Hetrick: The viewpoint and that's that's core to our technology platform and it's a.

Kevin Hetrick: The platform, we are the clear world leaders.

Kevin you want to add anything to that no. Just it is it is a view we resoundingly agree with the addition of the NTT anode and a conventional cell it adds weight and volume.

Kevin Hettrich: Kevin, do you want to add anything to that? No, it is a view we resoundingly agree with. The addition of the anode in a conventional cell, it adds weight and volume. It limits the power performance, specifically the ability to charge. It adds expensive materials to buy, you have to transform it. And in today's environment, adds risk to the supply chain. It's one of the major sources of life loss, and it's chock full of flammable materials. Eliminating it is what leads to the no-compromise solution that we're offering that is superior on all of these dimensions.

Speaker Change: Thank you guys if I can sneak one more in here.

Speaker Change: I noticed that the language is a bit broader in your strategic gateway about applications outside of Evs are are you guys.

Speaker Change: Limits the power performance, specifically the ability to charge it.

It is expensive materials to buy up to transform it and in today's environment adds risk to the supply chain is one of the major sources of life loss and it's the Chockfull of flammable materials, eliminating is what leads to the no compromise solution that we're offering that is superior on all of these dimensions at the same time so.

Speaker Change: Opening up to potential other high value applications outside of Evs, I mean, if anything on the horizon.

Speaker Change: As you know our first focus is on the automotive sector that has the highest volumes sector over there.

Siva Sivaram: Nor is there a mention of a true solid-state bank. Both of them have explicitly stated for the long term that solid state batteries are the In this current case, they are taking LFP batteries and working everything around it so that they can enhance the life, enhance the performance of an existing generation of technology, which is a very good thing to do. However, we are a different paradigm. We start at a different part in the S. Our job is to make sure we continue to push the frontier on the solid-state battery, which is what makes us feel all the more convicted in our belief that we need to be there as soon as possible in high volume, because we have a solution that the industry needs.

Speaker Change: But we are producing.

Unknown Executive: Unknown Executive, Yan Dong, Kevin Hettrich, Henry Roberts, Jordan Levy, Siva Sunderland, Thank you guys.

Speaker Change: Any high performance battery that is a no compromise vaccine that is useful across all friends.

Speaker Change: Very much agree with the viewpoint and that's that's core to our technology platform and it's a platform. We are the clear world leaders in.

Speaker Change: So applications such as the rapid growth in data centers.

Speaker Change: Evolving aviation applications.

Speaker Change: Thank you guys if I can sneak one more in here.

Speaker Change: These are all and consumer electronics. These are all very important.

Speaker Change: Steve I noticed that the language is a bit broader in your strategic blitzcrank about applications outside of Evs are are you guys.

Siva Sivaram: Siva, I noticed that the language is a bit broader in your strategic blueprint about applications outside of the EVs. Are you guys opening up to potential other high value applications outside of the EVs and if anything on the horizon? As you know, our first focus is on the automotive sector, that is the highest volume sector out there. But we are producing a very high performance battery that is a no compromise battery that that is useful across all So applications such as the rapid growth in data centers. Evolving Aviation Applications. These are all an unconsumable electronics.

Speaker Change: But as a company we are focused today on automotive, but keeping our eyes open on these new applications.

Speaker Change: Turning off to potential other high value applications.

Speaker Change: Okay.

Speaker Change: Thank you.

Speaker Change: Beside of Evs.

Speaker Change: Okay.

Speaker Change: Is there anything on the horizon.

Speaker Change: The next question.

Speaker Change: As you know our first focus is on the automotive sector that has the highest volume sector over there.

Speaker Change: Comes from Joe Spak of UBS. Your line is open.

Speaker Change: Thanks, Good afternoon.

Siva Sivaram: to replace internal. But maybe you could help me understand then why... You know, I guess the like the ends justify the means like if you if you if you get the performance you need or want out of their evolving, you know, technology, then why would, like, even if there is a solid state solution. What becomes the advantage to move to that versus if the performance and costs are similar? Yeah, if you notice, when these data are announced, they don't give you all of the information about the They don't talk about the safety. They don't talk about the safety of putting a megawatt of power into a cell at any given time which contains a combustible medium.

Speaker Change: But we are producing a very high performance battery that is a no compromise battery that is useful across all friends. So applications such as the rapid growth in data centers.

Speaker Change: I wanted to circle back to Mark's question, a little bit on the sort of competitive environment and really sort of better understand what's going on in your you know she.

Speaker Change: C level sort of the discussions because.

Speaker Change: Evolving aviation applications.

Speaker Change: Point can I ask you sort of alluded to there's a lot of fast moving progression going on.

Speaker Change: These are all and consumer electronics. These are all very important.

Siva Sivaram: These are all very important.

Siva Sivaram: But as a company, we are focused today on Thank you for keeping our eyes open on these new applications.

Speaker Change: But as a company we are focused today on automotive, but keeping our eyes open on these new applications.

Speaker Change: With those two players in terms of density fast charging.

Speaker Change: Am I on your name it a lot of which have the same or similar benefits to what you can offer so I guess, what I'm trying to understand is.

Speaker Change: Thank you.

Speaker Change: Okay.

Speaker Change: The next question.

Speaker Change: Is this giving them.

Joe Spak: comes from Joe Spak of UBS. Your line is open. Thanks, good afternoon. I wanted to circle back to Mark's question a little bit on the sort of competitive environment and really sort of better understand what's going on in your, you know, sea level sort of discussions, because, you know, to his point, and as you sort of alluded to, there's a lot of fast moving progression going on with those two players in terms of density, fast charging, you know, sodium ion, you name it, a lot of which have the same or similar benefits to what you can offer.

Speaker Change: Comes from Joe Spak of UBS. Your line is open.

Speaker Change: Any more pause in terms of sort of trying to sign up for a certain technology until they see how some of these other developments.

Speaker Change: Thanks, Good afternoon.

I wanted to circle back to Mark's question, a little bit on the sort of competitive environment, and really sort of better understand what's going on in your.

Speaker Change: Play out or or are they.

Speaker Change: Has there been any change in the tone of those conversations.

So.

Siva Sivaram: They do not talk to you when they do fast charging what the cycle like. They don't tell you how large those packs have to be to get that kind of a range. This is the trouble with making conclusions out of incomplete data. We can always make one of something that looks very, very good. What we are promising you and what we are building our company on is what I keep going back. and no compromise on all of those and first and foremost on safety. We need to be able to make sure we give you a battery that is very safe and performs at the end of its life and cycle life as well as it did on the first cycle.

Speaker Change: Number one the fact that the two Chinese players are intensely competitive with each bidder is a good thing for the industry and that's always good.

Speaker Change: C level sort of discussions because.

Speaker Change: This point and I guess, you sort of alluded to there's a lot of fast moving progression going on.

Speaker Change: However, if you listen to the holding carefully.

Speaker Change: With those two players in terms of density fast charging.

Speaker Change: No one is promising any new fundamental technology.

Speaker Change: Am I on your name it a lot of which have the same or similar benefits to what you can offer so I guess, what I'm trying to understand is.

Speaker Change: Not is there a mention of a true solid state battery.

Speaker Change: Both of them have it explicitly stated for the long term that solid state batteries in the future.

Siva Sivaram: So I guess what I'm trying to understand is, What is this giving them? Any more pause in terms of sort of trying to sign up for a certain technology until they see how some of these other developments play out or, or they, you know, has there been any change in the tone of this conversation?

Speaker Change: Is this giving them.

Speaker Change: In this current case, they are taking LSP batteries and working everything around it so that they can enhance the life enhancing the performance of the existing generation of technology, which is a very good thing to do.

Speaker Change: Any more pause in terms of sort of trying to sign up for a certain technology until they see how some of these other developments.

Speaker Change: Play out or or are they.

Speaker Change: Has there been any change in the tone of those conversations.

Speaker Change: However, we are a different paradigm.

Siva Sivaram: Yeah, so number one, the fact that the two Chinese players are intensely competitive with each other is a good thing for the industry. And that's always However, if you listen to the whole thing carefully, No one is promising any new fundamental technology. Nor is there a mention of a true solid state bank. Both of them have explicitly stated for the long term that solid-state batteries In this current case, they are taking LFP batteries and working everything around it so that they can enhance the life, enhance the performance of an existing generation of technology, which is a very good thing to do.

Speaker Change: So.

Siva Sivaram: Even while I'm charging it very fast, even while I give you the range, and even while I'm giving you cost adjustment. And I think The reason all of our customers keep coming back to us. None of these answers that they hear is satisfactory. Fair enough. I guess another one just going back to the on comment from the other night.

Speaker Change: Number one the fact that the two Chinese players are intensely competitive with each bidder is a good thing for the industry and that's always good.

Speaker Change: <unk> stock at a different box in the S curve.

Speaker Change: Our job is to make sure we continue to push the frontier on the solid state batteries, which is what makes us feel on the mall.

Speaker Change: However, if you listen to the holding carefully.

Speaker Change: Convicted in our belief that we need to be there as soon as possible in the high volume because we have a solution that the industry needs.

Speaker Change: No one is promising any new fundamental technology.

Speaker Change: Not is there a mention of a true solid state battery.

Speaker Change: <unk> replaced internal combustion engines.

Speaker Change: Both of them have explicitly stated for the long term that solid state batteries in the future.

Siva Sivaram: It's, I think the first time you sort of mentioned Adnobliss, you know, or Tesla has sort of mentioned maybe since, you know, I think they filed a patent back in maybe 2020, or something like do you do you have any understanding of what it is they are trying to accomplish how similar or different it might be from from your solution? We don't talk about our potential customers are. It is for them to decide. We have been talking about ourselves and what a anode-free architecture is going to be for a long time. We have not been shy about talking about it in public.

Speaker Change: But maybe you could help me understand then why.

Speaker Change: In this current case, they are taking a left b batteries and working everything around it so that they can enhance the life enhancing the performance of the existing generation of technology, which is a very good thing to do.

Speaker Change: You know I guess, the like the unused justify the means I guess if you if you if you get the performance unit.

Speaker Change: You need or want out of them.

Speaker Change: They're evolving you know technology then.

Siva Sivaram: However, we are a different paradigm. We start at a different part in the S. Our job is to make sure we continue to push the frontier on the solid state battery, which is what makes us feel all the more convicted in our belief that we need to be there as soon as possible in high volume because we have a solution that the industry needs.

Speaker Change: However, we are in a different paradigm.

Speaker Change: Why would it be like even though even if there is a solid state solution.

Speaker Change: We start at a different box in the S curve.

Speaker Change: Our job is to make sure we continue to push the frontier on the solid state batteries, which is what makes us feel on the more convicted in our belief that we need to be there as soon as possible in high volume because we have a solution that the industry needs.

Speaker Change: What becomes the advantage to move to that versus if the performance and cost are or similar.

Speaker Change: If you notice when these data.

Speaker Change: They don't give you all of the information about those solutions.

Siva Sivaram: So it is good to see more people coming around to our way of thinking.

Speaker Change: They don't talk about the safety.

Speaker Change: To replace internal combustion engines.

Speaker Change: They don't talk about the MTF, putting a megawatt or into a cell at any given time, which contains a commercial medium.

Siva Sivaram: And I want to leave it.

Siva Sivaram: But maybe you could help me understand then why... I guess the end justifies the means. If you get the performance you need or want out of their evolving technology, then why would, like, even if there is a solid state solution. What becomes the advantage to move to that versus if the performance and costs are similar? Yeah, if you notice, when these data are announced, they don't give you all of the information about They don't talk about the safety. They don't talk about the safety of putting a megawatt of power into a cell at any given time, which contains a combustible medium.

Speaker Change: But maybe you could help me understand then why.

Unknown Executive: Okay, last one.

Siva Sivaram: Do you have any updated thoughts on the timing for when you might be able to provide the street with a little bit more context on some of the financial implications from the licensing model? Anyone to take that? We've given the general framework that's long-term under the licensing model. You have royalty from the sale of product that involves our technology. And then in advance, the other part of the model would be cash flows before that would take one of the following forms or multiple of the following forms, things like prepays, things like reimbursement for development tailored to that product or NRE-type revenue.

Speaker Change: I guess the like the youngest justify the means I guess if you if you if you get the performance.

Speaker Change: They do not talk to you when they do cycle.

Speaker Change: Fast charging Wanda Sykes legacy.

Speaker Change: You need or want out of.

Speaker Change: They don't tell you how large those facts have to be to get that kind of range.

Speaker Change: They're evolving you know our techs.

Speaker Change: Technology.

Speaker Change: What why would like even though even if there is a solid state solution.

Speaker Change: This is the travel with making conclusions out of incomplete data sets.

Speaker Change: What becomes the advantage to move to that versus if the performance and costs are similar.

Speaker Change: We can always make one of something that looks very very good.

Speaker Change: We added promising new end market. We are building our company on is what I keep going back to and no compromise on all of those and first and foremost on safety.

Speaker Change: Yeah. If you notice when these data are unknowns. They don't view all of the information about those solutions.

Speaker Change: They don't talk about the safety.

Speaker Change: We need to be able to make sure. We give you a vaccine that is very safe.

Speaker Change: They don't talk about the safety of putting a megawatt or into a cell at any given time, which contains a commercial medium.

And performs at the end of its life cycle life as well as it did under burst cycle, even while I'm charging it very fast even while I give you the range and even while I'm, giving you cost at scale.

Siva Sivaram: They do not talk to you when they do fast charging what the cycle like. They don't tell you how large those packs have to be to get that kind of a range. This is the trouble with making conclusions out of incomplete data. You can always make one of something that looks very, very good. What we are promising you and what we are building our company on is what I keep going back. and no compromise on all of those and first and foremost on safety. We need to be able to make sure we give you a battery that is very safe and performs at the end of its life and cycle life as well as it did on the first cycle.

Siva Sivaram: But we haven't gone into specifics beyond that. So to round that off, we do expect that a licensing business model to have multiple different streams of revenue.

Speaker Change: They do not talk to you when they do cycle.

Speaker Change: Fast charging one the cycle like this.

Speaker Change: They don't tell you how large those facts have to be to get that kind of range.

Speaker Change: And I think.

Speaker Change: The reason all of our customers keep coming back to us is because none of these answers the yen is satisfactory to them.

Speaker Change: This is the travel with making conclusions out of incomplete data sets.

Siva Sivaram: And the ecosystem is an important part of making sure these are well-rounded, and at the appropriate time, we'll come and give you a full financial summary.

Speaker Change: We can always make one up something that looks very very good.

Speaker Change: Fair enough I guess, another one just going back to the comment from the other night.

Speaker Change: We added promising you and what we are building our company on is what I keep going back to and no compromise on all of those and first and foremost on safety.

Speaker Change: It's I think the first time, you sort of mentioned I know Bliss.

Unknown Executive: Thank you very much.

Speaker Change: Uh huh.

Speaker Change: You know our touch like I sort of mentioned, maybe some you know I think they filed a patent back in maybe 2020 or something like do you do you have any understanding of what it is they are trying to accomplish how similar or different it might be from from your solution.

Operator: Once again, if you have a question, it is star one on your telephone keypad. There are no further questions at this time.

Speaker Change: We need to be able to make sure. We give you a vaccine that is very safe and performs at the end of its life cycle life as well as it did under burst cycle, even while I'm charging it very fast even while I give you the range and even while I'm, giving you cost at scale.

Siva Sivaram: I'll turn the call to Quantumscape Management for closing remarks.

Siva Sivaram: Even while I'm charging it very fast, even while I give you the range and even while I'm giving you cost adjustment. And I think. The reason all of our customers keep coming back to us. None of these answers that they hear is satisfactory.

Speaker Change: We don't talk about our potential customers are existing customers.

Siva Sivaram: Thank you, Aubrey. With that, I would like to thank our employees for the dedicated our partners for their trust. and our shareholders for their continued support. We look forward to updating you on further progress in the months to come. Thank you.

Speaker Change: It is for them to dock Rehabbing talking about ourselves and work.

Speaker Change: I think.

Speaker Change: The reason all of our customers keep coming back to us is because none of these answers they'd be here is satisfactory to them.

Analog free architecture is going to be for a long time, we have not been shy about talking about it.

Speaker Change: Public. So it is good to see more people coming out onto our way of thinking and I know I want to leave it.

Speaker Change: Fair enough.

Unknown Executive: I guess another one, just going back to the the on comment from the other night.

Operator: This concludes today's conference call. Thank you for joining. You may now disconnect.

Speaker Change: I guess, another one just going back to the comment from the other night.

Siva Sivaram: It's, I think the first time you sort of mentioned that Noblesse, you know, or Tesla has sort of mentioned maybe since, you know, I think they filed a patent back in maybe 2020, or something like you, do you have any understanding of what it is they are trying to accomplish how similar or different it might be from from your solution? that we don't talk about our potential customers are It is for them to. We have been talking about ourselves and what an anode-free architecture is going to be for a long time. We have not been shy about talking about it in public.

Speaker Change: Okay.

Speaker Change: I think the first time, you sort of mentioned and I know a bus.

Speaker Change: Last one do you have any updated.

Speaker Change: Uh huh.

Speaker Change: Thoughts on <unk>.

Speaker Change: You know our tussle I have sort of mentioned maybe some you know I think they filed a patent back in maybe 2020 or something like do you do you have any understanding of what it is they are trying to accomplish how similar or different it might be from from your solution.

Speaker Change: The timing for when you might be able to provide.

Speaker Change: The street with a little bit more context on some of the financial implications from the licensing model.

Speaker Change: We don't talk about our potential customers are existing customers.

Kevin Hetrick: Kevin you want to take that and.

Kevin Hetrick: We've given the general framework, that's long term in a licensing model you have royalty from this from the sale of products.

Speaker Change: It is for them to dock Rehabbing talking about ourselves and work.

Speaker Change: Analog free architecture is going to be for a long time, we have not been shy about talking about it.

Speaker Change: Involves our technology and then advance the other part of the model would be cashless before that it would take one of the following forms or multiple forums things like prepaid things like reimbursement for development tailored to that.

Siva Sivaram: So it is good to see more people coming around to our way of thinking, and I want to leave it.

Speaker Change: Public. So it is good to see more people coming out onto our way of thinking and I know I want to leave it at that.

Speaker Change: Okay.

Kevin Hettrich: Okay, last one. Do you have any updated thoughts on the timing for when you might be able to provide the street with a little bit more context on some of the financial implications from the licensing model?

Speaker Change: Last one do you have any updated.

Speaker Change: Products or <unk> type type revenue, but we haven't gone into specifics beyond that framework.

Speaker Change: Thoughts on <unk>.

Speaker Change: The timing for when you might be able to provide.

Speaker Change: Yeah.

Speaker Change: So good on that okay.

The street with a little bit more context on some of the financial implications from the licensing model.

Speaker Change: We do expect that.

Speaker Change: Licensing business model to have multiple different streams of revenue.

Kevin Silver: Kevin you want to take that and.

Kevin Hettrich: Kevin, you want to take that? We've given the general framework that long term under the licensing model, you have royalty from the sale of product that involves our technology. And then in advance, the other part of the model would be cash flows before that would take one of the following forms or multiple of the following things like prepays, things like reimbursement for development tailored to that product or NRE type revenue. But we haven't gone into specifics beyond that. So to round that off, we do expect that a licensing business model to have multiple different streams of revenue.

Speaker Change: And the ecosystem is an important part of making sure that these revenue streams are well known and then adapt.

Kevin Silver: We've given the general framework, that's long term under the license in my model you have royalty from this from the sale of a product.

Speaker Change: Adopt property and time will come and give you a food.

Speaker Change: Financial picture.

Kevin Silver: Involves our technology and then advance the other part of the model would be cashless before that would take one of the following forms or multiple following forum's things like prepaid things like reimbursement for development tailored to that.

Speaker Change: Thank you very much guys.

Speaker Change: Yeah.

Speaker Change: Once again, if you have a question it is star one on your telephone keypad.

Speaker Change: There are no further questions at this time I'll turn the call to content management for closing remarks.

Kevin Silver: Products or <unk> type type revenue, but we haven't gone into specifics beyond that framework.

Speaker Change: Thank you operator.

Kevin Silver: Yeah.

Speaker Change: With that I would like to thank our employees for their dedication.

Kevin Silver: So good on that house Bill.

Kevin Silver: We do expect that.

Speaker Change: Our partners for their trust.

Kevin Silver: Licensing business model to have multiple different streams of revenue.

Speaker Change: And our shareholders for their continued support.

Speaker Change: We look forward to updating you on further progress in the months to come thank you.

Kevin Hettrich: And the ecosystem is an important part of making sure these are well-rounded, and at the appropriate time, we'll come and give you a full financial Thank you very much.

Kevin Silver: And the ecosystem is an important part of making sure. These revenue streams are well known.

Speaker Change: Okay.

Speaker Change: This concludes today's conference call. Thank you for joining you may now disconnect.

Kevin Silver: Our property and time will come and give you a full.

Kevin Silver: Financial picture on this.

Kevin Silver: Thank you very much guys.

Kevin Silver: Yeah.

Unknown Executive: Once again, if you have a question, it is star one on your telephone keypad.

Speaker Change: Once again, if you have a question it is star one on your telephone keypad.

Speaker Change: There are no further questions at this time I'll turn the call to content management for closing remarks.

Unknown Executive: There are no further questions at this time.

Unknown Executive: I'll turn the call to Quantumscape Management for closing remarks. Thank you, operator. With that, I would like to thank our employees for their dedication. our partners for their trust and our shareholders for their continued support. We look forward to updating you on further progress in the months to come. Thank you.

Speaker Change: Thank you operator.

Speaker Change: With that I would like to thank our employees for their dedication.

Speaker Change: Our partners for their trust.

Speaker Change: And our shareholders.

Speaker Change: Continued support.

Speaker Change: We look forward to updating you on further progress in the months to come thank you.

Speaker Change: Okay.

Unknown Executive: This concludes today's conference call. Thank you for joining. You may now disconnect.

Speaker Change: This concludes today's conference call. Thank you for joining you may now disconnect.

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