Expanded collaborations with Volkswagen (VW) and a new Original Equipment Manufacturer (OEM) partner announced in Q2 2025 by QuantumScape (QS) in their quarterly results.

Expanded collaborations with Volkswagen (VW) and a new Original Equipment Manufacturer (OEM) partner announced in Q2 2025 by QuantumScape (QS) in their quarterly results.

QuantumScape Expands Partnership with PowerCo and Secures New Joint Development Agreement

QuantumScape, a leading solid-state battery developer, has announced significant developments in its Q2 2025 report. The company has expanded its partnership with PowerCo, a division of Volkswagen Group, and secured a new joint development agreement with an unnamed major global automotive OEM.

In the expanded agreement with PowerCo, QuantumScape will receive up to $131 million in new milestone-based payments over the next two years, in addition to the $130 million previously announced upon technical progress and licensing execution. This collaboration will accelerate the development and industrialization of QuantumScape’s QSE-5 solid-state battery pilot line in San Jose. PowerCo gains earlier engagement in QSE-5 production, automation efforts, and the right to produce up to an additional 5 gigawatt-hours (GWh) of QSE-5 cells annually, including for customers outside Volkswagen, as well as licensing certain future QuantumScape technologies.

Regarding the new joint development agreement, QuantumScape has upgraded its previous sampling agreement to this level, reflecting growing industry confidence in its technology. The company is selective about partners to protect its technology while enabling scaling to high-volume production. Details about the new partner remain undisclosed, but the collaboration broadens QuantumScape's industrialization efforts and remains focused on chosen customers for strategic growth.

QuantumScape's Q2 2025 capital expenditures totalled $8.3 million, primarily for facilities and equipment purchases. The company is planning to install higher-volume cell production equipment to support scaled solid-state cell production beyond Q2 2025. QuantumScape ended Q2 2025 with a cash runway through 2029.

In terms of financials, GAAP operating expenses and GAAP net loss in Q2 were $123.6 million and $114.7 million, respectively. The Adjusted EBITDA loss in Q2 was $63 million, and QuantumScape narrowed the range of its full-year Adjusted EBITDA loss guidance to $250M - $270M.

QuantumScape has also made strides in integrating its proprietary Cobra solid-state separator process into production. This process enables gigawatt-level scale manufacturing, supporting both the PowerCo licensing model and advancing sample production of QSE-5 cells toward commercial scale. The Cobra breakthrough is expected to lay the groundwork for higher-volume B1 sample production of QuantumScape's flagship QSE-5 cells. Future shipments will be Cobra-based B1 samples, in line with QuantumScape's third annual goal.

The company has also shipped QSE-5 cells for pack integration and testing, including safety testing, as part of its low-volume, high-visibility project with its launch customer. PowerCo will prioritize QuantumScape's QSE-5 cells manufactured on the San Jose pilot line to support their joint development agreement. QuantumScape continues to maintain a non-exclusive arrangement and has the right to provide cells to other customers.

While the name of the new joint development partner remains undisclosed, this news is exciting for QuantumScape as it continues to push the boundaries of solid-state battery technology. The company's commitment to innovation, coupled with its strategic partnerships, positions it well for future growth in the rapidly evolving electric vehicle market.

[1] QuantumScape Press Release, "QuantumScape Announces Expanded Agreement with PowerCo, Volkswagen Group’s Battery Division," June 2025. [2] QuantumScape Press Release, "QuantumScape Announces Integration of Cobra Solid-State Separator Process into Production," July 2025. [3] QuantumScape Press Release, "QuantumScape Secures New Joint Development Agreement with Major Global Automotive OEM," July 2025. [4] Volkswagen Press Release, "Volkswagen Group and QuantumScape Expand Partnership," June 2025.

1. The expanded partnership with PowerCo, a division of Volkswagen Group, will allow QuantumScape to invest in the development of its QSE-5 solid-state battery pilot line using green energy, contributing to the growth of electricity-powered business in the automotive industry.
2. QuantumScape's technology in the field of solid-state batteries has attracted significant interest from the industry, as evidenced by the new joint development agreement with an unnamed major global automotive OEM, a sign that electric vehicles are becoming the focus of financial investing and technological advancement.
3. With the new joint development agreement, QuantumScape will collaborate with the partner to industrialize its QSE-5 solid-state battery technology, potentially paving the way for widespread use of electric vehicles, thereby reducing carbon emissions and contributing to the global transition towards green energy.

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