QuantumScape (QS): Solid-State Battery Growth and Stock Outlook

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Introduction.

In an easy-to-understand format for those with no basic knowledge of investments, finance, or financial results (including myself), we will take a closer look at the corporate information, business, and future prospects of Quantum Scapes (QS), an all-solid-state battery start-up company.

You can use this article to review Quantum Scape's (QS) business, characteristics, and future stock price outlook as a reference.

What is Quantum Scapes and what kind of business does it do?

• QuantumScape, founded in 2010, is a startup from Stanford University in the United States.EV Battery Development CompanyThe following is a list of the most common problems with the "C" in the "C" column.
• The main business of the company is,Development of lithium metal batteries using solid electrolytesThe following is a list of the most common problems with the "C" in the "C" column.
• It is attracting attention as a battery technology for electric vehicles (EVs).
• QuantumScape's lithium metal batteries are more compact than conventional lithium-ion batteries.High energy density, which can significantly increase the cruising range of electric vehiclesThe following is a list of the most common problems with the "C" in the "C" column.
• Its battery technology isShorter charging time and longer service lifeThe company also expects to
• In 2020, the company was listed on the New York Stock Exchange through a special purpose acquisition company (SPAC).
• The company has announced a partnership with Volkswagen, a major electric vehicle manufacturer, and its technology and vision are attracting attention.

Quantumscapes' company information is below.

• Company Name:QuantumScape Corporation : QuantumScape Corporation
• Date of Establishment: 2010
• Name of Representative:Jagdeep Singh : Jagdeep Singh
• Official Site: https://www.quantumscape.com
• Principal Business:.Development and production of lithium metal batteries using solid electrolytes

What is an all solid-state battery? What is the difference from lithium-ion batteries?

Lithium-ion batteries use liquid as the electrolyte.
When a battery is charged or discharged, lithium ions move through this fluid.

However,Liquid electrolytes are problematic from a safety perspective because of the risk of ignitionThe following is a list of the most common problems with the "C" in the "C" column.
In addition, the use of liquid electrolytes limits the energy density (the amount of energy relative to the size of the battery) of the battery.

On the other hand,All-solid-state batteries use solids as the electrolyte.Lithium ions move through this solid.
Solid electrolyte is safe with low risk of ignitionIt is considered to be a
Furthermore, the use of solid electrolytes can significantly increase the energy density of the battery.
Thus, more energy can be stored in batteries of the same size.

The main difference between lithium-ion batteries and solid-state batteries is "whether the electrolyte is liquid or solid," which makes a big difference in "safety" and "energy density.

Reference:Murata Mfg.

All-solid-state lithium metal battery technology has the following advantages over ordinary lithium-ion batteries

High energy density

All-solid-state batteries have the potential to have a higher energy density than conventional lithium-ion batteries.
By this,Increased battery capacity, extending the range of electric vehiclesbecomes.

Highly safe

Compared to lithium-ion batteries, which use liquid electrolytes, all-solid-state batteries are considered to have a lower risk of short circuits and ignition.
Because the electrolyte is solid,There is no leakage of liquid electrolyte and low risk of overheating and ignition of the electrolyte.

Reduced charging time

All-solid-state batteries are theoreticallyCan be charged faster than lithium-ion batteriesIt is believed that this is because the solid electrolyte is capable of transferring ions more efficiently.

Long battery life

In all solid-state batteries, the solid electrolyte inhibits battery degradation,Longer service life compared to lithium-ion batteriesIt is said to be

What are the characteristics of the all solid-state batteries developed by Quantum Scapes?

Simply put, the all-solid-state battery being developed by QuantumScape usually has a negative electrode (anode) and a positive electrode (anode: cathode), which are divided by a separator.

In Quantum Scape technology,An "anode-free" feature that does not require an anode structureThere is a

This is the negative side: the anode (anode) does not exist when the battery is made, and the anode is created in situ when the battery is first charged.

This allows for a smaller size, simpler and more cost-effective battery manufacturing, and also improves battery performance.

High energy density and battery miniaturization

QuantumScape's all solid-state batteries use lithium metal as the electrode,Higher energy density than conventional lithium-ion batteries.

Along with enabling a longer range with the same weight of batteries,Battery size can also be reducedIt is.

Fast Charging

QuantumScape's all-solid-state batteries allow for fast charging.
By eliminating the lithium diffusion bottleneck in the anode host material,It is reportedly capable of recharging 80% of batteries in 15 minutes.

long life

QuantumScape's all-solid-state batteries can significantly extend battery life by eliminating capacity loss at the anode interface. In company tests,Even after 800 charge-discharge cycles, the capacity of the battery has been confirmed to retain more than 80%.

It can also operate at minus 30 degrees Celsius.

cost reduction

Eliminating anode host material and manufacturing costs reduces costs.

safety

All-solid-state batteries have a lower risk of short circuits and ignition than lithium-ion batteries, which use liquid electrolytes.
Quantum Scape batteries are,The use of solid electrolytes (separators) made of non-flammable, heat-resistant ceramics further reduces these risksThe company is doing so.

Source:QuamtumScape

How did Quantum Scapes form its company?

• Quantumscapes was founded in 2010 by Jagdeep Singh, Tim Holme, and Professor Fritz Prinz of Stanford University.
• In 2012, the company began working with German automaker Volkswagen.
• In 2018, Volkswagen will invest $100 million in Quantumscapes, becoming its largest shareholder.
  That same year, Volkswagen and Quantumscapes announced the establishment of a joint project for the mass production of all-solid-state batteries.
• In June 2020, Volkswagen invested an additional $200 million.
• On September 3, 2020, Quantumscapes announced a merger with Kensington Capital Acquisition, a special purpose acquisition company (SPAC), to raise $1 billion. This included funds from Volkswagen and the Qatar Investment Authority.
• As a result of the merger, QuantumScape's stock was listed on the New York Stock Exchange under the symbol "QS". The transaction was completed in November 2020 and raised capital for the mass production of batteries.
• In the last quarter of 2020, Quantumscapes temporarily exceeded Ford Motor's valuation with zero revenue with no commercial product.

What is the trading market?

• QuantumScape's stock is traded on the New York Stock Exchange (NYSE).
• The ticker symbol is "QS".

Dividends?

At this time, Quantumscapes does not pay a dividend.
This is consistent with the general trend of many growth-stage technology companies not paying dividends in order to reinvest profits and prioritize business expansion.

What are the sectors, industries, and themes to which Quantum Scapes belong?

QuantumScape's sectors, industries, and themes to which it belongs are as follows

sector

Quantumscapes is classified as a Consumer Cyclical sector. This is a sector that includes industries that are heavily influenced by the economic cycle, of which the automotive industry is a part.

type of industry

Quantumscapes is categorized under the Auto Parts industry. This industry includes companies that manufacture and sell parts used in the manufacture and repair of motor vehicles.

Themes belonging to

QuantumScape is relevant to the topics of electric vehicles (EVs) and energy storage technology.
In particular, QuantumScape's all-solid-state battery technology could have a significant impact on improving the performance and popularity of electric vehicles.

Size and growth potential of the industry to which Quantum Scapes belongs

Several reports offer differing views on the size and growth potential of the all-solid-state battery industry, of which QuantumScape is a part, but overall, high growth rates are expected.

• According to Allied Market Research, the global all-solid-state battery market is expected to be approximately $500 million in 2020 and is projected to reach $3.4 billion by 2030, with a compound annual growth rate (CAGR) of 18% over that period.
• According to Vantage Market Research, the all-solid-state battery market is expected to be approximately $113.9 million in 2022 and is projected to reach approximately $130.198 billion by 2030, representing a compound annual growth rate (CAGR) of 35.60% during that period.
• According to Markets and Markets, the all-solid-state battery market was approximately $58 million in 2022 and is projected to reach approximately $314 million by 2028, with an expected compound annual growth rate (CAGR) of 32.5% during that period.
• According to Grand View Research, the all-solid-state battery market is expected to be worth approximately $590.9 million in 2020, with a compound annual growth rate (CAGR) of 36.0% thereafter.

From these information,The all-solid-state battery industry is growing rapidly and is expected to grow in sizeThe company has been

This is due to the increasing demand for electric vehicles and advances in energy storage technology, and represents a significant opportunity for companies like QuantumScape that are developing all-solid-state battery technology.

Quantum Scape is also a renewable energy sector

• Quantum Scape is a publicly traded investment by Breakthrough Energy Ventures (BEV), a fund of 33 of the world's wealthiest individuals, including Microsoft founder Bill Gates, that invests in promoting the renewable energy sector and developing technologies.
• BEV is endorsed by Bill Gates, as well as Amazon founder Jeff Bezos and others, and Masayoshi Son.

Who are some of Quantum Scapes' competitors?

• Cymbet Corporation:.The company is involved in the manufacture of lithium-ion batteries and is also involved in the development of all solid-state batteries.
• Prieto BatteryThis startup company is developing all solid-state batteries with a 3D structure.
• BrightVolt:.The company develops flexible, thin, all solid-state batteries.
• Factorial Energy: Factorial EnergyA start-up company developing all solid-state batteries with high energy density.
• Electrovaya (ELVA):. The company is involved in the manufacture of lithium-ion batteries and is also involved in the development of all solid-state batteries.
• ProLogium:.Taiwanese manufacturer of all solid-state batteries for applications such as automobiles and cell phones.
• Sakuu:. The company manufactures all solid-state batteries using 3D printing technology.
• Solid Power, Inc (SLDP). :.The company develops all solid-state batteries using lithium metal.
• toyota motor corporation (7203):.The world's largest automaker is also actively involved in the development of all-solid-state batteries.

These companies could be direct competitors to Quantumscapes in the development of all-solid-state batteries.

What are Quantum Scape's differentiators and advantages over the competition?

Quantumscape's differentiators and advantages over the competition are as follows

technological superiority

QuantumScape's all solid-state battery technology is,It meets all the key requirements of an electric vehicle battery: high energy density, long life, fast charging, and safety.
This gives QuantumScape's batteries superior performance compared to conventional lithium-ion batteries and other all-solid-state batteries.

partnership

Quantumscapes are,It has a strong partnership with Volkswagen, the world's largest automaker.Quantumscapes has the funding and resources to mass produce its own technology.

patent

Quantumscapes are,He has prepared more than 200 patents and applications related to all-solid-state battery technology.Quantumscapes can protect their technology and prevent imitation by competitors.

Product Development Progress

QuantumScape is developing all-solid-state battery products and has already released some battery samples.QuantumScape is showing concrete progress in bringing products to market.

Quantum Scape's future development

Quantumscapes' future developments are as follows

New Partnerships

Rumors have surfaced of a potential partnership with Porsche, which is said to be considering integrating QuantumScape's solid-state battery technology into its new electric 911 model.
This is expected to further strengthen cooperation with several key customers, including Volkswagen, which is already

Development of all solid-state batteries

Quantumscapes is developing an all-solid-state battery with a much higher energy density than the lithium-ion batteries currently in use. The same battery size could significantly improve the driving range of electric vehicles.

Product Development Progress

QuantumScape achieved the 2021 milestone as planned, successfully testing 10 layers of cells.In 2024, the company took an important step toward commercialization by beginning to ship Alpha-2 prototypes.These prototypes have higher energy densities than the previous 24-layer A0 prototype cells, mainly achieved through higher-density cathodes and more efficient packaging techniques.
In addition, multilayer cells are being developed, which may eventually require dozens of layers in each battery pack.

Product launch

Quantumscapes plans to produce cells for test vehicles in 2023 and start commercial production in 2024.

In July 2024, the company signed an agreement with Volkswagen's battery affiliate PowerCo to industrialize solid-state lithium metal battery technology, granting it a license to mass produce battery cells based on QuantumScape's technology.

Quantum Scape's Performance

QuantumScape is a start-up company still in the development stage and has not yet sold any products, so it has no track record of sales.

Therefore, performance analysis is omitted here.

Quantum Scape's current share price

View the current real-time stock price chart (TradingView) for Quantum Scapes (QS).

The chart shows the Relative Strength Index (RSI). Reference as an indicator of market overheating.

*An overbought indicator when the RSI exceeds 70% to 80%, and conversely, an oversold indicator when the RSI falls below 20% to 30%.

Quantum Scapes (QS) Q3 FY2024 Financial Results Summary

• Net sales: Quantumscapes has not yet recorded commercial sales.
• net loss: $119.7 million, compared with a loss of $110.6 million in the same period last year.
• Adjusted EBITDA (operating income (loss)): Loss of $71.6 million, compared with a loss of $62.5 million in the same period last year.
• Cash and cash equivalents: $841 million.

Technological Progress and Product Development

• Started shipping QSE-5 B samples: Quantumscapes has produced a small quantity of B-samples of its QSE-5 solid-state battery, which has an energy density of over 800 Wh/L and a fast charge time of less than 15 minutes (10% to 80%), and has begun shipping them to automakers. The company's technology has entered a new phase of development.
• Partnership with PowerCo: A joint development project is underway with PowerCo, a subsidiary of Volkswagen, for the mass production of QuantumScape technology. A licensing agreement will be signed as the technology progresses and advance royalty payments will be received at the time of mass production.

Cost Control and Forecasting

• capital outlay: Capital expenditures of $17.9 million in the third quarter were used to produce prototypes in the low volume stage and to purchase manufacturing equipment.
• Cash Runway Extension: The contract with PowerCo provides the company with the prospect of securing funding through 2028. Additional funding in the capital markets in the future could provide even more funding.
• Adjusted EBITDA loss forecast for full year 2024: Expected in the range of $280 to $300 million, with legal and settlement-related costs having an impact.

Future Outlook

QuantumScape is aiming for mass production of batteries by 2025, with the Cobra process (a production process for high-capacity separators) in full swing. Future challenges are to improve reliability and production efficiency, and further efforts are needed to establish a large-scale production system.

While QuantumScape has made significant progress in the development of solid-state battery technology, with the start of shipments of B samples of QSE-5 in particular being an important milestone, there are still no commercial sales, and future improvements in the technology and preparation for volume production remain a challenge.

Quantum Scapes (QS) Q2 FY2024 Financial Summary

• Net sales: Quantumscape has not yet recorded commercial sales.
• net loss: $122.95 million, up from $116.5 million in the same period last year.
• Adjusted EBITDA (operating income (loss)): Loss of $72.51 million, an increase in losses over the same period last year.
• Cash and cash equivalents: $938 million.

Technology Development and Progress

• Partnership with PowerCo: In partnership with PowerCo, a subsidiary of Volkswagen, Quantumscapes is advancing the industrialization of solid-state lithium metal battery technology; advance payment of royalties from PowerCo has extended the financing outlook to 2028.
• QSE-5 B Sample: Produced B-samples of the next-generation solid-state battery "QSE-5" and started providing them to automakers. This battery has an energy density of over 800 Wh/L and the ability to charge from 10% to 80% in less than 15 minutes.
• Cobra process: Development of the "Cobra process" for mass production of QSE-5 batteries is underway; based on the Raptor process, the Cobra process will be used to produce high-quality separators.

Cash Flow and Capital Expenditures

• capital outlay: $18.9 million was allocated for equipment purchases to support the production of low volume QSE-5 prototypes.
• Cash runway for full year 2024: Licensing agreement with PowerCo extends funding outlook to 2028.

Future Outlook

• QuantumScape says that it will work with PowerCo to further technological progress toward the mass production of next-generation battery technology. The company also expects that securing financing through licensing agreements will support future growth.

Although Quantumscapes does not yet have commercial sales, the company has improved its financial situation by advancing its technology development and partnerships, and is taking important steps toward mass production of solid-state battery technology.

Quantum Scapes (QS) Q1 FY2024 Financial Summary

Key Developments and Technical Highlights

• Shipment of Alpha-2 prototype battery cells: 6-layer Alpha-2 prototype battery cells now shipping to automotive customers; Alpha-2 has higher energy density than previous A0 prototypes and is a key design forming the core of QSE-5 commercial products.
• Enhanced discharge performance: Alpha-2 prototype cells have a higher discharge capacity than conventional lithium-ion cells, which directly affects the acceleration performance of high-performance vehicles.
• fast charge: The Alpha-2 prototype has demonstrated the ability to rapidly charge from 10% to 80% state of charge in less than 15 minutes. This is consistent with the QSE-5 goal.
• Low temperature performance: Alpha-2 can maintain excellent energy density in low temperature environments and performs well in cold air.

Manufacturing and Process Outlook

• Raptor Fast Separator Production: Increased production of the Raptor process will accelerate process development for cell assembly and collect cell test data to verify improved safety and reliability.
• Cobra Process Preparation: Based on the success of Raptor, the Cobra process is designed to realize the full potential of high-speed separator production, with plans to increase production of the QSE-5 prototype in 2025.

financial outlook

• Cash Flow and Capital Expenditures: Capital expenditures in the first quarter were $14.1 million, primarily for low-volume QSE-5 prototype production and Cobra process preparation; capital expenditures for the entire FY2024 are projected to range from $70 million to $120 million.
• Cash and Liquidity: The company has $1.01 billion in liquidity at the end of the first quarter and expects to be able to raise funds until late 2026.

Toyota Motor Corporation's All-Solid-State Battery Development

Toyota Motor Corporation has released about the development of all solid-state batteries.

As a comparative element, we will also keep its contents in mind.

• Development of all solid-state batteries:Toyota aims to improve the driving range and reduce the cost of future electric vehicles (EVs) by introducing high-performance all-solid-state batteries and other technologies. This is a strategic shift that will allow Toyota to compete in the rapidly growing EV market.
• Commercialization of all solid-state batteries:Toyota has announced a "technological breakthrough" in the durability problem of all-solid-state batteries and is developing the means to mass produce these batteries. The company then aims to commercialize these batteries between 2027 and 2028.
• Performance of EVs with all-solid-state batteries:EVs powered by all-solid-state batteries have a range of 1,200 km and require only 10 minutes to recharge, Toyota said. In contrast, Tesla's Supercharger, which currently has the largest charging network, can charge 321 km in 15 minutes.
• Development schedule for all solid-state batteries:Toyota aims to introduce next-generation lithium-ion batteries starting in 2026 to provide longer driving range and faster charging. For the luxury market, Toyota also plans to produce EVs with more efficient lithium-ion batteries with a range of 1,000 km (621 miles).

summary

QuantumScape innovates battery technology for electric vehicles,We aim to realize EV batteries with superior performance.

Their all-solid-state battery technology meets all the key elements required for electric vehicle batteries: high energy density, long life, fast charging, and safety, and offers superior performance compared to conventional lithium-ion batteries and other all-solid-state batteries.

QuantumScape has cooperative relationships with several automakers, including Volkswagen, and in addition, QuantumScape holds numerous patents on all-solid-state battery technology to protect its technology and prevent imitation by competitors.

The future of QuantumScape is to begin commercial production in 2024 after a long testing period,A license for mass production with PowerCo, Volkswagen's battery division, has been signed, and a full-scale breakthrough is expected.

QuantumScape has a competitive edge in the all-solid-state battery market and is expected to significantly change the future of electric vehicles.
The share price has been in the $10 range for a long time, but we are looking forward to seeing how the stock develops from 2024.

List of brokerage firms offering Quantum Scape stock

Finally, we have listed the most popular brokerage firms that offer Quantum Scape stock.

At these brokerages, you can choose to invest as a CFD (Contract for Difference) in addition to direct stock trading as a foreign stock.

I myself mainly use SBI Securities, but there are times when I am unable to purchase some of the stocks they handle. In such cases, I sometimes use Saxo Bank Securities or IG Securities for short-term trading using CFDs.