QS - Earnings call transcript Q4 2020 | QuantumScape Corporation

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Operator

Good day and welcome to QuantumScape's Fourth Quarter 2020 Earnings Conference Call. My name is Sheryl, and I'll be your conference operator today. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. Thank you. of you Head conference. begin QuantumScape's Saager, Investor may Relations, your John

John Saager

To please you, thank at quarter QuantumScape's call. and Good ir.quantumscape.com XXXX today's to conference Thank Shareholder afternoon joining to you view operator. Letter. IR to go our everyone our for earnings supplement website discussion, fourth

provision as call The Before statements on posted that to to risk part our Safe update. your identifies and quarterly of we Harbor begin, I Harbor that our Safe is our attention want provision forward-looking factors website for may results our difficulty Form the including actual sight reasons to cause filings, the differ by our content forward-looking that in materially predicting of XX-K in the SEC posed from and future other statement outcomes. for uncertainties we

QuantumScape's and I'd With Jagdeep be results the will over to and us and business, Jagdeep on Jagdeep Hettrich. cover outlook today our detail. turn Kevin a then in Co-founder, Singh; that, strategic provide update financial like Singh. call our and to the will Chairman, the CEO will CFO, Kevin Joining more

Jagdeep Singh

quarter company. fiscal to major Thanks, public as developments a summarizing a today, the our we earnings published from last call Welcome our letter the first year. to John. Earlier shareholders and

it, read If you to be look take a our encourage haven't already shareholder primary we we you. report to you way as the will letter our progress

of won't I all also of call can but highlight. our In to attention repeat Relations contents letter you ir.quantumscape.com. the find a it your on addition I website, couple like SEC to company Investor of key would website, to here, the the

out revolutionize sustainable storage We brief QuantumScape the the and enable mission to were to new some energy are that with those founded XXXX in Stanford for background. of future. a First, story,

the push expect Over into we stationary storage coming to transformation represents to and we application well is of on for tremendous as other the grid problem which a we to the powertrain as first value including The an create time, the over power both very electrified solution to decades. version, emissions an opportunity part of the important believe the automotive focused electronics. markets, consumer

We type of are battery. a a battery, of the lithium-metal development the pioneer solid-state new in

a technology used faster enabling pure range turn or Our make cells in of replace allows these separator, batteries in to us cells. these conventional fundamental a silicon and of battery, not higher with while separator greater benefits, polymer times, with carbon but the ceramic driving an The the to anode the in believe which solid-state density, energy single conventional metallic replaces used issues charge the us of some charge, we is batteries cycle adoption with conventional by complexity lithium, layer of on eliminating battery increasing of by We safety our holding the improved back anode beauty these life. are widespread it, delivered vehicles. offering anode long approach simplifying of the electric

a showed result, batteries, last lithium-ion capable the of our of XX% like power initial XC. XX at and of room of densities to cycles near the particular, data traditional As lithium-metal benefits versus current temperatures X,XXX of showing cells the over Celsius achieving In rates while approach. with the clear this now high life or December, of capacity, batteries cycle long should less operating we approach were conventional degrees than

alternative result. are unaware negative better of Celsius. at industry low including cycling approach and state In on conventional of of rates cells found degrees as most a battery we the believe to demanding with racetracks on solid-state minutes cycle data such cells excellent temperatures fast XX this these XX solid-state addition, data charge We relative shared high those of capable performance the performance were watermark showing drive operation charge, XX% marks any new data at to for and

our cells, I commercial target coming for these our forming think demonstrated for the battery layers basis up cells. goal our single cells, make year this the and level of multi-layer to performance stack is on

report We close and And our the cell, cells cycling outlook are capacity to We possible millimeter standard retention target capacity. line in the XX XX up to our we therefore allowed millimeter by and as pleased to Celsius, have because form our assembled us made first effectively layer XX separators, single reached four work single these we at for XC similar cells, the without very XX cells. XXX have commercial cycle layer XX% C/X the rates impacting time factor. layer we cycles both to and stack degree over cells performance is use capacity in to that quadruple showed at retention by separators from it areas demonstrating XX cells adversely it to to engineering our of from current cut life our scale substantially

of a these count, this have in processes, of is we new are still work challenges battery we cells to we be our our we We goal to to believe increased we find. so increase make will the layers, for for subsequently layer aiming layers, We delivering multi-layer address track milestones, in lot that and XX four the result, number incredibly an XXXX. achieve need excited millimeter eight customers achieve the XX new and cells commercial While using is layers our by and year-end, and if now manufacturing on there by of to important XX challenges our as first early could be to to optimize we layers this done these encounter any year. area prototype

also tools. to vehicles Jose, building capacity to, batteries to Kevin? non-automotive few us like allow then enable to we will by our us help to have partners, year. to and decided as provide as flow, need year, per expect on early producing The help pre-pilot the make commercial I'll Kevin hundreds help we XXX,XXX have per de-risk capable accelerate automotive well This test progress will to up we our development that Hettrich, over will about next this a applications, scale-up. VW, open provide long-range generation cells work will work the CFO, electric San capacity enough additional of continuous subsequent provide of scale-up, to on battery automation attention call XXXX. explore It further cells to it to cell over for we a our this and for own your engineering high of is to other performance, With financial on and to that, our facility line say hand which be it line Q&A. and manufacturing build samples QS-X in other words line QS-X I'd with to and thing, is recent QS-X. draw based intended

Kevin Hettrich

Thanks, Jagdeep.

like quarter, I expenses XXXX, on $XX Before I our million. on the our little our perspective were and full quarter In color to outlook a give financial operating result. first get fourth year fourth for would XXXX

issuance the reporting were combination. stock-based business the Excluding $XXX million. as liabilities subject Series $XXX operating in preferred classified loss expenses at the entities done The F warrants accordance relating prior accordance GAAP, at and million. take Series F stock period. with to business were net re-measurements value originally issued compensation, non-cash measurement quarter stock U.S. final in we to with In and expense preferred were close our U.S. of bringing GAAP, fourth to to non-cash million of GAAP $XX were a required Combination, to fair preferred warrants These the

As further $XX to year stock-based On full our related excluding compensation. were a $XX these. be or there will operating result, no million a re-measurements expenses basis, million

nearest year X.X XXXX ended for preferred loss net Fair XXX.X adjustment outstanding. shares was fiscal with of shares, GAAP million common stock value we the of Our referenced. $X.X previously XXXX The approximately billion. million stock

to and $XXX.X we shares, free the XXX or for be in to of anticipate employees including million issuable Note and SX of of flow As flow exercise outstanding full those a burn investments RSUs. cash notably second issuable XXXX. fourth upon to used warrants, warrants, tranche million to maturity, which of support free for have in to customer shares, upon issued investment, and the million of RSUs and the consultants of company's SX cash investments been $XX the cash, of the the shares options range on the the XX% approximately process December the and to With work, $XX million films for SX, XXX of aforementioned and filings. our had issuable and separator all options respect XX% million exercise XX, including registered QS-X.These will in year XXXX, solid-state of support CapEx, and that company Volkswagen's XXXX, shares total quarter make production our engagement. advanced assembly, We approximately issuable upon cell multi-layer vesting

receipt liquidity assuming of than We million to would expect Public through use exercise allow the assuming of from financing This we fund less position cash XXX XXXX, and Volkswagen funding, $XX the XXXX enter net proceeds of with believe, production. sufficient the us to million Warrants. in us over to

pace which processes John. and investors $X its flexibility challenge production the that, give are our it we're through to we the as the we need factors where in usher over of execute revolution. commercialization. ability sheet to of including nearly ramp of thank I'll on battery pass vehicle course headcount maturity billion spend forward In back strength electric books us and help the Of we our of ahead. on to QX like level our including the in believe their and with for support depend belief mission the summary, on are able XXXX, plan we to the We'd with to excited to look will automation. and balance to our several John? the our the will With With

John Saager

Kevin. Thanks,

asking minds the we a the on a investors. most of Q&A practice, team, our of going will pertinent portion management questions As the matter by of few forward, begin

by For future our can emailing through reference, questions inbox ir@quantumscape.com. Relations investors Investor submit

before seems frequently most to quarter's progress it progress as like going of QuantumScape announcements. follows. multi-layer. Toyota Can about others This talk Solid get and Power? to achieved that Competitor market are as have It relates others and your you are to already NIO, asked and like questions

Jagdeep Singh

without note point doesn't single-storey collapsing trying key a that equivalent have block be is The building building single work. that It will a itself. haven't cell the put to multi-storey on up to when layer of to a able to help that you it building a been multi-layer uses Sure. make here doesn't

data a So we any capable elevated has the without current shown competitor cycle temperatures. densities solid-state requiring life, of from high of delivering separator long any seen that haven't

players two the commercially density, that solid-state fast carbon-based benefits which course, lithium-metal of charging many result, to unelevated of or you not key mentioned life, a of cells can lithium-metal result are the current of single a one back the We requirements of work cost to viable. fall loss energy test that conditions, the only use that those layer are have but of compromised As meeting and including in temperatures. a reverted high solid-state player error, density capable into cycle block just architecture and categories. long shown only believe Those under lithium-metal those we make key the building

more, of interested published [ph] are website. who and can our battery on those solid-state a for in it So magic the learning we've find survey actually you

John Saager

refer refers one Between will such the hour. letter to charge in or in and simply performed discharge, great. description C/X refers and discharge. Okay, C the can The and of charges XC be number many discharges to one that rate charge charge and it how industry, to or

and hour. charge high or impacting life, or are on cycles. the technology power per test means robust is So in the XC full testing QuantumScape which rates of stressed one often XC charge is rates a to I One means, able at lithium-ion rates want run or C/X high be conditions. note development hours. allows cycle so data charge life quoted cycle XC one collection faster life that cycle hour, discharge to discharge to discharge under more because adversely battery in C/X out We three and battery the one-third shorter

energy. unique energy cell energy to power XC Finally, or power, things than What of cells have the target target. technology, used energy shown by an I'll renewable are liter. with point QuantumScape around high watt-hours at which liter, is the XXX but with X,XXX high or per this out watt-hours be that rates is But as be designed either in we a our today's the cells with cells, low considerably can per conventional batteries, [indiscernible] XX-minute so higher are high charge which about power

John Saager

great. Okay,

Our next question is how and batteries? will chemistries lithium-ion improvements your future affect

Jagdeep Singh

Sure.

improvements the in or better of most stem better of either world the So anodes. CapEx lithium-ion from

On the completely CapEx we're side, exhausting.

whom as material dry level who Because automotive higher any being those liquid electrode improvements technology sell including so able to, well such by So these OEMs we're of material or will cases we improvements fewer to in as have content improvements, some sources; take sell to a as manufacturing on even to believe both to such us access advantage are suppliers improvements, these processing. driven of competitor. as capital as of level we

Now to amount related on the adding the anode a are anode. to side, the of improvements silicon carbon certain

So carbon. silicon can more than hold lithium

and of cycle impacts life expands so that cells. adversely the silicon contracts However during much these cycling

So using silicon limited the anode. fraction of cells amount of to these is the a

future. As than provide a approach eliminates a carbon result, lithium-metal a density. deliver energy a the this of significant even see or into contrast, lithium-ion increase with energy the density as approach anode in ourselves silicon density. able being greater approach conventional resulting Thus only benefit small to XXX% lithium-metal By in we

John Saager

have What of the sustainable industry? And our question. final like you advantage cost feel the over Okay. you'll a makes rest

Jagdeep Singh

architecture eliminate and allowed traditional of is silicon anode liquid manufacturing process rid anode our entirely, multi-week occur the is chemical and a which process, carbon in to carbon the side means reaction or between which line electrolyte. anode we particle we long in formation which materials, a So electrode get the the anode the

As in of separators. we cost will a believe and be result, given same conventional our separator as the magnitude order

lower expect scale. iron that cells conventional approach, be given quantitative lithium should at cost what We a the any manufacturing than

John Saager

the We're questions. Thank Q&A to today's for right. the please Operator, call. portion begin All of Jagdeep. you, ready now open lines

Operator

Sachs. from Please Thank you. ahead. Mark Goldman from first Our question comes go [Operator Delaney Instructions]

is line Your open.

Mark Delaney

afternoon. articulated revenue the generating Thanks in in think work in company facility you pre-pilot you of revenues call. of the going about the wanted to investor additional and the previously very what Do yes? sooner than to taking And in for the you deck to good terms today. cells very with. generating having can projection have somewhat XXXX outlook give ask higher company that announced I potentially its questions, or that terms the perhaps first Yes, changes your is much earnings happy kind be either the to company of compared to magnitude the current outlined that

Jagdeep Singh

that designed going our QS-X cells provide really to it's this it's Hi, Jagdeep. Yes. is sense we The in the increases have does to Mark, QS-X that it make to that going is indirect OEMs of impact a make manufacturing have we successful test it have can cars, automotive and to -- to subsequent rollout don't the will expect an that but builds. in sense the we possibility

So is that's why thinking what QS-X I was designed to do. about

Mark Delaney

thanks. you That's that for to expenses the guided terms of the operating year. helpful, then company on And in run this rate

that So to of put letter. I in shareholder you the XX% cash outlays think XX% your

is implied the the expenses XXXX little think operating implied Investor Presentation in last above in are what expenses. XXXX for operating I a bit

the levels, extent some up ability and prior has that to company perhaps So the QS-X better the more, in the fact planned it you that this do investment a hoping plan. to with operating bit correlating but bit understand and am like taking compared seems what I are I to taking your company of expenses is a assume to

Jagdeep Singh

do want take that Kevin, you one? to

Kevin Hettrich

'XX $XXX Mark, call. towards seen correctly on OpEx higher, allocated rate, We guidance was don't in our QS-X will we're number in and -- you QS-X. $XX.X so million you have you or million little it expect the specific being there be Sure. XX% guidance noted, a to would that this activities in XX% And with about to we had beyond. to $XXX be CapEx. from incremental portion, is in plan, operating the million leaving 'XX run as as million spent the QX In spending $XX.X and current to

Mark Delaney

operational some that's just to you Thank And, in terms learn for good update the the the And lastly, Interesting. of of on milestones. multi-layer. about. more

that there's that us was get was on yields area know separator terms getting able the don't manufacturing, other anything The -- with the if today. of I on company you're to by up share discussed that the front in

Jagdeep Singh

Yes.

demonstrating layer the you I case when So, showing stacks in today that Yes, important retention, make it's really capacity and stacks them, on single nothing. is We're out cycle materially. change life behavior four-layer take this -- that, multi-layer was think was there of doesn't milestone Jagdeep. and cells the but that

of excited and what is as opening production there there really other with obviously, layers, any to we remarks, have pointed production that's I more out might deal were So XX XX arise. to And up the be actual done about. scale unforeseen in work to issues that size and the to to the

stacked to -- be the sort with means similar looks to the year those process, data accomplish just of very to can very similar as the of so cells. of that tasks layers rest but into in multi-layer that scaling. result at this substantially data that of That's that core to I the to us. fact we exciting what have complete was should mentioned the terms core cells that the that in single And And have rest we we year that the

Mark Delaney

Thank helpful. very That's you.

Jagdeep Singh

Sure. Great questions.

Operator

you. ahead. from Stanley. Morgan comes Please our question Thank Adam And from Jonas go next

line open. is Your

Adam Jonas

Thank everybody. Jagdeep. Hello, you. Hey,

on First, chance of able customers. with great you, other for today it well. customers disclosure. say test any as gives Thanks that. discussions you're your QS-X, On non-VW non-Volkswagen think I'm if to curious, the point, prototypes I potential and status to customers a to update questions. of us Couple with

have the a company in if to commercial those us uptick listing can this then I you're seen the create follow-ups. at I update itself, or And curious lot an or I'm As couple it discussions benefits. care a the of around all interesting and imagine, time? you of IPO anything attention of you've that

Jagdeep Singh

question. the for thanks Adam, Yes. Yes,

-- a that resulted has meaningful working have that that inbounds we profile you we're maybe higher the number clearly correctly the some in as of now guessed, we're So public through. of

said actually that have tested by had We automotive multiple before ourselves we've OEMs.

as that So deal, only VW that as deal announced. as VW is we've you the know, VW great But is think that the obviously one partner non-exclusive. I a is

That's So OEMs interest earlier, in of fully announcing anything on we grid automotive we as we of stationary we're cells the to sectors? to our we the electronics. the make the what's including for are without the with are to will that storage big today customers as not set -- enough more from interest. provide one of work fact OEMs OEMs, And ability test. online, a production well to just we as of having other benefits consumer over QS-X now, the to intend with obviously, free mentioned fullness we this other to to capacity time. We're constrained are ones work out produce in bring time. expect of fully we the multiple produce technology by front of beyond cells. right available able And special and but be as broader the But Some customers able we

Adam Jonas

Jagdeep. Thanks,

question location Next is QS-X in factory and of Europe. the on the expansion

people it about renewable energy, thinking capacity that to get we don't call should would how other you're of battery being most closer Norway sources be seeing particularly you're this Germany. of -- on might that expect lot in think a I what know it. investments you're I as seeing

energy-intensive ask about versus source, manufacturing process? -- proximity again, you're thinking So that at breaking a not Thanks. for I'm trying to if you renewable-sourced, didn't to put you Volkswagen but in what very news how is curious the letter, your I'm new to

Jagdeep Singh

as that decisions. great think to of kind is, exactly issues a what those balance kind And I question. I tell those I the think, siding can we it's vinyl Yes, need make of, we are you

hand manufacturing is the So battery manufacturing the locating [indiscernible]. where in is close the to on one trend industry vehicle

need decisions other chain On includes the into aspects supply supply of power the comes includes also to vinyl and balance battery siding also that that goes the labor. hand, other you

-- be a multi-dimensional vehicles problem. a into question the those it come be of And the likely to manufactured. is it's kind the where close are So of the I is other think play? how a But takeaway main facility function to how going close to of dynamics is

Adam Jonas

me you both and density to one gravimetrically there final talk other a about And mentioned energy aviation are I course, hear Okay. market. just eVTOL the markets. you Jagdeep, implications in of volumetrically, for direct When electric

out curious we're those you than scenarios be think level you the some something automotive specifically the is cases that at some about high markets you very of prepared your some least, In of are eVTOL maybe mention And even exploring mobility, potential what market at in very, larger air don't size and market. the urban it that cases of even though it large. it remarks? in running could I'm a call

Jagdeep Singh

will early eVTOL how area, off? sector. emerging market particular. that able that with and -- Could big players good definitely is fact very too debt we grew discussions a significantly. that's to sensitive market a as interesting that and surmised, energy the when predict correctly in the little Yes, they is are us extremely in gravimetric you question. a But obviously application be, whole to taking to starts It's in new just whole the in for density be impacts

And the that that it compelling density offering, we were energy really a for make application. benefits fit so

comes the really terms them, capacity that So being down most luxury sure least, to on. be what the application, and Adam. some at them I of we compelling that progress markets. markets in our overall of we near-term in to I what economics able of to narrowing have -- think of and so the we're have will well, to gives us is for I'm But us, constrained, the the as going near-term in be sort near-term, those in fit somewhat as customers end, pick on very expansion those down for the communicate make it

Adam Jonas

Thanks, Jagdeep.

Jagdeep Singh

question, go. we another is can Operator, if there

Operator

go Please ahead.

question ahead. Our go Please Research. Wolfe comes from Rod Lache from next

is Your open. line

Rod Lache

when to the moving incremental little you in to testing what overcome. are with volumetric changes overcome encounter give could that a us the to also the XX about layers, you you need X maybe being the assuming to layers, Hi, factors challenges development order anticipate that achieve many -- biggest and that that? everybody. are just of form played in final the you'd and challenges in on those ask, how Wanted it's just lithium gating -- And cells I'm bit do commercial factor. to they're on what is there color did the

Jagdeep Singh

Rod, Hey, it's Yes. Jagdeep.

a So, which and commodity TACT we number of margins is on layers depends bit customer variable and which talking the of design a little which are about.

So there no one I you could is give number there.

think cell And I few you in virtually be layers less going it that hundred more in, of -- a different and say it's every doesn't that ballpark. be it, if going is capture there kind flavor a make wide to a miss that than for in we trying of range. if to the be dozen right few OEMs, then you'll similar than range, dozen doesn't to but

your can making isn't appreciated As there is get is you major But December, started do need lot more a times The we more downside, more multi-layer tools there; of we're we work make example, for we we multi-layer, We on But need in materials, have equipment to lot produce development those capacity We what up the candid, the those sized for a you production order major the cells, need with the the four-layered two ramping we that quite very far existing be that. XX -- tools data make from world our tools to news associated engineering tools. main appropriate can -- the in make of so we capacity. more generally cells. ourselves. get of quadrupling cell, able the the don't be there, to these acquire so an cells. layers needs means if unfortunately shared so cells. challenges on lines a layer manufacturing magnitude term single -- those we multi-layer single that to more as to Once had have suppliers, of lead doing -- is good with those the we and the issue immediate we to just

figure return make just this and on overnight. we So more cells can't

turned configured. Once So gating on mentioned that multi-ourselves. work once immediate cells, That's installed, to be I to that probably finish there's remarks, get And a that been in do able lot we the most to the build then to capacity going of waiting that X to need point will or produce to the we're delivered target year-end, cycle. customers. item the ordered, have, have to appropriate really more able tools off to get the be layers XX development [indiscernible] blocks we building of engineering that be prepared by to at our of the as we

Rod Lache

Thank you. scaling. latest your give you on an us just update And great. on Okay, can thoughts

so to beyond XXXX? goes Just assuming to that everything with pilot looked as variety manufacturers, well want XXXX, possible this much the want expand the economics going of to scale upsell with -- you line in presumably, what a could you're as that of as like

Jagdeep Singh

guess you're is of might model so I Well, kind asking more production do just make for how question mean, about that... sure, the the to we or I business capacity

Rod Lache

different by being cell would Yes, capacity that built would elsewhere, I to right. leverage a that's of assume want you variety manufacturers

all by yourself? It would some that manage would to licensing that challenging So be involve arrangement.

Jagdeep Singh

Yes.

we've could what key of are there sort of fundamental production, do is So ways you handful said right.

it core next a the In yourself. That's way obviously manufacturing to we're all mentioned, So the battery that bringing this volume, backlog. lot quality high general doing JV case, ones way model high simplest with we're solid-state is expertise, bringing they're of you right. that do type is and have The we Volkswagen.

go components actually into can cells, we we're example, for separator. of the that our the part of the outsource where some models other what solid-state doing real unique The is course of

done potentially work third by parties. capital could Some of be the

license IP third-party Otherwise the protected. challenge don't terms confidence IP is we're in U.S. of high you diffusion, some [indiscernible] in I diluting fundamental you the want protection, of that. of to kind IP be also to obviously but So that to super company license is is of manufacturing just have exploring way. somebody going unless there to technology the course the company. The think ultimate, IP And a IP

the at economic what think I just those and models. we're tradeoff So different between balance doing trying look is

production particular elsewhere. to if doesn't any buy want they energy the sufficient are -- sure, think you pursue being done philosophy our do own capital any so something general our we'll from doing it of going team's to are we VW, we're liability assume done no our side. basically QS-X, can to be have in we doing That's not make For to want bandwidth of It's that our third-party, that with has spend We something want forward quality to use can elsewhere, the and sure elsewhere, are that we for we you available already we with to we or a need JV that if that that that things desire needs and somebody better do or to or will do can have only ourselves. meet on that.

Rod Lache

Thank Great. you.

Jagdeep Singh

Sure.

Operator

Thank Kallo you. Ben from Please ahead. go comes from And our next Baird. question

line Your open. is

Ben Kallo

for the Hey congratulations, guys, information. call. all Thanks on first the conference

you sufficient of into Once layers, the One a how my the the first stuff. it you talked about, layering of things question. pack? and on still is have you anticipate and difficult That's number to trying congratulations do we're transition understand that to

Jagdeep Singh

are how Ben, for you? Hey the Yes. question. Thanks

module earlier of be that in number mentioned as really what the particular the going to is layers pack function we a So I of have need.

behavior very heat modular a behavior have straightforward use that's similar relatively discharge So what We carbon of to is expect lithium-metal, is cells that of conductor these kind then much cathode based is these pack layers, be electrical the so makes that being sound the similar. the a you designed level thermal we right of number the of packing being in it our with speaking, sense up the already will once used, the with it the design be And of is better same than used. anode the will cells, traditional because will profile electrically be conventionally material better The analyst. line.

temperatures. be can tolerant high much better. BMS stable we very, So separator BMSs. should way is to it's our to shuttle heat The much, similar very heat more conventional much very Also to interface

we module -- have to be it's to will think that of showed designed -- don't already should But have multi-development a earlier the and on today. -- the level is, we given being that it there. real the expect will been design, challenges course, really any fundamental requires data integrating just we So pack be this stacks. key we've complete been that because tight at able but We cells particular engineering,

Ben Kallo

Okay.

relationship talk mentioned after it But it stationary because be electronics the and other around the Could could onerous markets. to market themselves. seems counterintuitive is go that moving packs then You've just electronics storage the requirements you easiest with towards first? market like less Volkswagen of they're and batteries potentially consumer auto to me consumer that's about but maybe the why

Jagdeep Singh

figure wanted mean battery we we No, of The of what's solve min do to negative, going Celsius. consumer there which analysis, said it's will you We just well. less the a I need And And lot doesn't the don't density, electronics trying is of batteries, we based to is are -- needs be Look, degrees time long many XX a start-up. you thought Each car temperature with on This doubt we as cell much is automotive many phone. one easier got rather -- focus, result equivalent ways. the going our range here size markets question previously operating charges, without it, a trying market, charge power that, layers, spent some our respect, need XX, are much. trying Tesla well. actually that great we of take the nothing companies that pick, positive do market to number Having doing right. to company we tend these the the many is XX,XXX do it's whatever to each with a but the bigger a in -- small we out need early Model was are if has the is is belief we that rather be of days XX -- problems can't be -- so We buy all. say cost XX, iPhones worth really much should question. that years. be a the -- global be no for of same markets, saw foresee all application. fundamental to The vehicle after. really them a to had We've a of just go to we to and too

four right. that's magnitude which orders bigger So is massive, of

be So, recently, for X volumes, compared much sold Phase not I line small producing; power to XXX than we something like year. pilot will it's Apple's small first the really very be million checked haven't so our look if line. more if a VW you at Apple's even of but would year, that a one the That's size one a

terms volume -- in make consumer second of cellphones love impact a The volume the factor love the would more point in by by up is taken get they'd say of application, to two. the battery reduce devices to we The

squeeze higher perfectly something and now in of of phone. like there these they space. the defined So a We are into more of a phones enablers more lot other of right -- felt they much words in that level can is have electronics penetration. really disruptive functionality terms But the but automotive benefits

a So between of the the has overall, pretty ways are problems. to importance think our particular cycle. out, is the as able automotive of others hoping, this were which to we this having it And I the is think as take get that already sector which in solved we on Expanding solving of follow partnership really downhill. in some guys us one executed the to our for because locked in a space that and ways and size the we and good technology think, well we've in early we hardest compared other you phenomenal life it new of what you the was decision we we're I sector, And move if been exactly It's pointed in because sectors. that some know. it combination

to to feel ahead have and we of we other into the well segments expand go overtime. sort we're like -- ground high this that positioned So

Ben Kallo

you the guys I I Thank you was Are for how That's Thank could more. the you. test to in are competitors. your to as you versa, able and vice information here. get get if very one there them, sneak actually how just helpful. people And them and able well. and helpful get yourselves out difficult cells our landscape from or paid test wondering for then

Jagdeep Singh

Yes.

So questions absolutely all. great

players the start-ups published the the results. So first space or either of are of small all, research solid-state companies in other many battery labs the that within

a they issued we put So those of us. are based they've what have directly from and the published lot and that source papers websites, doing, on tweets guys

the material. then are So looking have mission, just But we papers. for ago. but there were have XX didn't started we the an solid-state when We And not numbers we we what where back remember other the know sharing? the reading answer by is this years -- were company,

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-- as have will solid they sulfides what that's kind very B) could the sulfide ions are commonly was work The them as A) So big a that [ph]; as material. highly conductive, we pretty the today's are they prevent And that's talk put our the conduct used they the sulfide, which advantage, -- just liquid. lithium -- which about they what on liquid got them almost least are when dendrites. that's solid not people purity state, for one of same really as stable people map, about made excited The have classic of or problem the example, material. in the -- popular is electronics well is that we

above, so, our chemical is impedance or obviously stability actually resistance see and fundamental leading if and you X.X volts X.X volts have growth which say to reactions below go So itself. kills you side or of

both and or compared lower voltages sulfide. the are So respectively cathode with anode, higher at the

did that those many That's hope in ways an us material we make there opportunity. but out a to confidence market, seen multiple certainly, is a find books thing enough of easy out that in we Well, going these we in such beginning given entrants no make know systems. -- on the lot going other able one ends. that's work data, that just to very market there, will They compromised claims, where people for few of Well, And massive that can lot our our be announcements, the it's that space. big to having this shown reduce makes will play work. way is be they what's a have of compelling. But is we dead we It's materials. is but that will working the people absolutely have to that anything conditions, problem. point people not So the actually them right. haven't shown argue clear data to players people ones to many of out lot people The test made have a data. And

kind XX like then have car, that's at So, solid-state you a of fast look in densities you key run overview, at or to high solid-state shown Celsius. single that And not XX degrees are and separator need no minutes, current to like comparable shown manifest, mentioned that temperatures to in requirements drive run temperatures charge long degrees if run you like or Celsius And just than can that. we've have at we a has degradation. cycles have to has as XX the other with aware an need regular you that XX with player we elevated of what XXX,XXX data XX minimal

it's strategy. a also a building it doesn't a cells matter, the It's sound why we block not multi-layer with is -- talked that fact about building this isn't just capable. So

You're multi-storey stand to single-storey to not you're a make make a problem not -- going building. going building you solve can to if up, by trying that

combination know material having published papers how we work in of own own and labs. as then kind groups that's of a those our So and these competitive systems seen these about in of by many our alternatives, directly

Ben Kallo

Thanks, again.

Operator

our next from question And Joseph go Securities. Thank you. Please from comes ahead. Osha JMP

line Your open. is

Joseph Osha

Hello, there.

questions. me Let of A my to everyone else disclosure. thanks such add for great couple

begs follow-up. levers you're kind terms You've the I in solution the this sort And trying has cathode materials. on, or of of different finding with that interesting industry showing of to of that have more obviously got you then chart been a overview your question go pull can commodity -- material? you're there And on there, but do cathode a any learning in

Jagdeep Singh

we one What things I solid-state that have works. Yes. pointed relatively is you out that our think of separator that cathode agnostic. I is, a once is that system the mean, means

further, and this the would say, a You you cathodes -- the used provides our separator in can solid-state but to the -- of for could I I kind with any go use cathode range cells of system, be open that that electrical not would actually capital. are isolation agnostic, only cathode you an between up anode. reason can broader simple conventional you yourself

wide be Well at cathode a means is various up both Now to stability the and it which the liquid the liquid voltage has you which And in like wholesale that is low have high voltage. anode, which have from of separator to a the remember that normal the materials anode presentations, and the voltage in have stable single that with layer, the -- our cathode, cell, is if the and both our nature schematics very the is cathode ions that and it's of is through to layer. hard the polymer solvent in porous anode you carbon remember window move you the in a with relative electrolyte contact there flooded find or down. lithium that

So cathode you need that low to anode just separator insulator, having when are an which no cathode voltage. between longer to the isolate stable have now the cathode, and we materials our to by electrical the is

-- cathode broader a the universe that actually materials and of for to a allows use select to you broader So potentially from catholyte.

different it short of lot cathodes. types But answer have the that a I is, answer. we on some long the -- question is for So, was of a patents mean,

provide a patents patent on of density energy metal to the the at chart dozen to materials in Those as that that ones way the which some those referring the happen On cathode we conversion are look our known of portfolio, right. you're you see shows effect. extreme tool, some highest crafting a kind If are chemistry. fluorides of on -- is where try we solid-state to a materials, with win see need yes, that and materials day could need then But that be a -- having to we of you a to focus lithium-metal anode one new the to we gives new from enough there. market further cathodes to growth separator the getting because didn't sort and commercialize a see that didn't of

Joseph Osha

I transition to metal exotic with don't mess And customers cathodes your anyway. assume want

Jagdeep Singh

will a complicate earlier. mentioned little it Well, yes, the just bit interfaces electrical I that

So absolute. renovation this way a pack the in talk [indiscernible] simple

Joseph Osha

Okay.

another you've end on it amount can things of rather CVD, Second But depending right. are imperfections of add sort things, what you you layers, than entire to go processes PVD question, been in and going wires of and whatever always making where the having be in got. the you're material wasted

layers got is wondering, just I've use whatever, and if wrong you're way XX something it XX lose you looking of your so layer whole being the that; thing? do at or I'm goes their and process and or if So

Jagdeep Singh

good a it's idea. Yes,

that's to obviously that on I use right. of applications think if in overtime the it it but a different scrapping up. just effectively -- strategy have once you lower unit get overall absolutely trying specs the applications. the for And application, world production valued so specs used the meet that that's advanced just But for doesn't does that's meet we're one [ph], great really you a at in semiconductors, is focused volumes very point, this and for

those of exactly things doing are overtime. planning that on So, kind we're

of higher we're base more using automation, the on more focused I the kind process. throughs of production sort of level just of in more flow use to continuous now people kind increasing kind think right of

Joseph Osha

factor? any around from the question, me. initial Thank could know the you then great. I my thinking factor. whether the in Okay, that multiple cylindrical prismatic And this And additional there the questions. form all said on been that's for last work it is form of sorry cell had you. has or mean I learning pouch

Jagdeep Singh

question. Good

flexible [indiscernible]. bended in much for to damaging have we've form We we So, actually OEMs ceramic, our the prismatic to be prismatic images separator a see application. our that their cylindrical to can expect will we film. not Both of intend are use don't that as the on have cells best to though we packaging without actually into work sufficient shown very we pouch is said factors. wide don't day and at it pick the the And meets the automotive format end with radar. Even

our QuantumScape, a are to battery, us no value how -- creation us we the we're package the guide not We're actually have -- go helping cell, helping religion on role in OEMs the significant into So materials -- going was with it. into that there. let we're that

Joseph Osha

It's Super. Thank you for the seminar. great.

Operator

concludes Thank I'll our portion for the the Singh you. call Jagdeep turn back this of closing now call. And remarks. Q&A to

Jagdeep Singh

want over just you thank first look of us call on to we our I call. earnings forward say you Yes, for the I joining today, to everybody And this rest reporting to our mean, progress the year.

calls. will for using We plan format the same subsequent our

a letter We progress quarter. will the issue the highlights shareholder for that

have few on a We with then going great of time short afternoon. Have to to shareholder and a which forward. Q&A. Look highlights present letter, forward the of continuing really work everybody most call, a earnings will the spend

Operator

Thank This joining our today. you for concludes call. us

disconnect. now may You

QuantumScape (QS) 17 Feb 212020 Q4 Earnings call transcript