QuantumScape Corporation

Thank you for standing by and welcome to QuantumScape's second quarter 2026 earnings conference call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you'll need to press star 1-1 on your telephone. If your question has been answered and you'd like to remove yourself from the queue, simply press star 1-1 again. As a reminder, today's program is being recorded. And now I'd like to introduce your host for today's program, Sam Kamar. QuantumScape's Senior Director, Investor Relations. You may begin, sir.

Thank you, operator. Good afternoon, and thank you to everyone for joining QuantumScape's second quarter 2026 earnings call. To supplement today's discussion, please go to our Investor Relations website at ir.quantumscape.com to view our shoulder 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 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 is factors that may cause actual results to differ materially from the content of our forward-looking statements for the reasons that we cite in our share on the letter from 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, Sam. I'd like to start by discussing our automotive commercialization progress. This quarter, we announced a partnership with Honda. This is a multi-year agreement aimed at advancing our solid-state lithium metal battery technology for automotive and other applications in the Honda product portfolio. Honda is renowned for their engineering excellence and product quality and has made significant investments in scaling up solid-state battery manufacturing capabilities. This partnership results from one of the most rigorous assessments of our technology to date. Our ceramic separator and anode-free lithium metal architecture enables QS to provide solutions to unlock the full potential of solid chain batteries. With Honda's diverse product portfolio, this collaboration allows us an additional pathway to expand into new high-value markets. We recently updated our ongoing collaboration and licensing arrangement with Volkswagen Power Co. with a set of milestones and payments focused on automotive cell development, larger format cells, and our future technology roadmap. We are also working with two other top 10 automotive OEM customers under existing joint development agreements. We continue to strengthen our relationships with automakers in North America, Europe, and Japan. And on this front, we have shipped cells to an additional automotive OEM customer. We also see broad-based interest in our technology across a variety of applications beyond electric vehicles, including AI data centers and other advanced applications such as aerospace and defense. We believe that all these end markets can be served by our fundamental technology stack, but each customer can benefit from an individually tailored go-to-market approach. In order to serve our diverse and growing customer base, we are establishing three business verticals. QSEV for electric vehicles, QSDC for AI data centers, and QSAS for advanced solutions for applications including aerospace and defense. QSEV is working with auto OEMs around the world, including Volkswagen and Honda. QSBC is engaged with ODMs to design solutions based on QSC5 technology for the fast-moving AI data center market. And QSAS has shipped QSC5 cells to a major American defense prime and is engaged with global players across the aerospace and defense industries. Next, an update on the Eagle line. our highly automated pilot cell production line in San Jose, California. The Eagle line serves several purposes. Greater cell volumes allow us to meet customer demand for samples. Higher throughput accelerates the process development cycle. And automated equipment serves as a proving ground for scaling up production. Demonstrating scalable production of a unique technology on a first-of-a-kind automated line is a significant challenge, and as such, it is one of our four key annual goals. Applying our systematic, methodical, and iterative approach, we have made significant operational progress with the Eagle line. Core tools are showing uptime greater than 90%, Key metrics of productivity are hitting our targets, and we are currently ramping sample volumes and shipping cells to customers. As we continue to improve process stability and control, we aim to further double cell output in the second half of 2026 and anticipate customer sample shipments accelerating across all three verticals. We are orchestrating a network of partners within the QoS technology ecosystem with the aim of scaling up cell production. As part of this effort, we are working closely with established battery equipment vendors to lay the groundwork for future factories. We also continue to collaborate with our ecosystem partners at Murata Manufacturing and Corning, working towards high-volume ceramic separator production using our COBRA process. Next, two updates on our technology. We have received consistent customer feedback that in addition to the combination of energy density and power capability, the safety profile of our technology is highly valuable. Competing next-generation approaches such as silicon or lithium metal anodes with liquid electrolytes can pose serious safety hazards. In contrast, our proprietary ceramic separator is non-flammable and non-combustible, which enables an improved safety profile relative to lithium-ion cells. Thanks to the increased cell output from the Eagle line, we are able to conduct larger-scale safety testing across a broad range of commercially relevant tests, including nail penetration, external short circuit, and thermal stability, testing up to 300 degrees Celsius, whereas conventional lithium ion testing stops at 200 degrees. We are pleased to report that larger scale testing continues to show that QSC5 is a significantly safer cell design compared to both conventional and next generation lithium ion cells. We have also seen customer interest for our technology in cell form factors that are larger than the QSC5. One benefit of larger format cells is improved packing efficiency, which can result in higher cell level energy density. In response to this customer interest, we have demonstrated that our COBRA process can produce larger area separators for higher capacity cell design, which shows the flexibility and scalability of our ceramic separated technology to meet customer requirements. I want to take a step back and look at the big picture. QS was founded with the mission to revolutionize energy storage. Today, it's becoming clear just how consequential that mission is. Transportation, AI, and defense are simultaneously undergoing fundamental transformations. Electric vehicles are reshaping the global automotive market. Drones and unmanned systems are rewriting the rules of different strategies. And AI is unlocking new capabilities for every business and person on the planet. These extraordinary developments all have one thing in common. They all need better batteries. We are positioning our organization to take advantage of these technology transformations. QSBC is working to capitalize on exciting high-value opportunities in the AI data center market. And QSAS is engaging in customers in high-value aerospace and defense applications. With QSEV, we are advancing automotive commercialization with our four top 10 OEM customers, including the newly announced Honda partnership. The Eagle line is ramping up to enable increased customer shipments in the second half of the year. And we are investing in future technology roadmaps with larger format cells and more in the pipeline. There is much work still to do, but our team has the talent and tenacity to overcome challenges as we industrialize our technology to make the most of these transformational opportunities. Thank you for your support, and we look forward to sharing more updates in the months ahead. With that, I'll turn things over to Kevin for a word on our financial outlook.