QuantumScape Corporation (QS) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

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 the 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. Joining us today will be QuantumScape CEO, Dr. Siva Sivaram, and our CFO, Kevin Hetrick. With that, I'd like to turn the call over to Siva. Thank you, Dan. Today, we announced an expansion of our existing collaboration and licensing agreement with Volkswagen Group's battery maker, Powerco. This upgraded deal sees Powerco contributing additional payments of up to $131 million to QS over the next two years to support our joint commercialization activities. These payments are connected with certain milestones to be achieved by the joint scale of D. The first milestones linked to expected payments of more than $10 million have already been achieved. These new payments are additional to the previously announced $130 million that will be due to QS upon satisfactory technical progress and execution of the full licensing agreement. As part of this upgraded deal, QS will prioritize the output of QSC5 cells from our San Jose pilot line to support our joint activities with Powerco. Though we maintain our non-exclusive arrangement and retain the right to provide cells to our other prospective customers. This expansion would allow PowerCore the right under the licensing agreement to produce up to an additional five gigawatt hours of QS cells annually, including for custom...