Solid-state battery developer QuantumScape has posted its quarterly fiscal report and letter to shareholders for Q2 2025. QuantumScape’s progress update includes an expanded agreement with Volkswagen Group’s battery business, PowerCo, and a new joint development agreement with an additional OEM.
As far as quarterly updates go, I personally look forward to the letter to shareholders from QuantumScape ($QS) four times a year. The solid-state battery developer continues to improve its technology and production techniques, pushing closer than ever to delivering mass-produced energy-dense cells to market.
Last month, QuantumScape reported that its proprietary Cobra solid-state separator process had been fully integrated into its baseline production processes, achieving a 2025 goal while enabling gigawatt-level solid-state cell production.
QS said the Cobra breakthrough is expected to lay the groundwork for higher-volume B1 sample production of its flagship QSE-5 cells, which will eventually lead to scaled production for the battery market.
Furthermore, the technology supports QuantumScape’s licensing model with PowerCo, a division of Volkswagen Group, which was announced a little over a year ago. As part of its Q2 2025 report, QuantumScape shared details of an expanded deal with PowerCo among several other exciting updates.
Partnerships, Volkswagen AG; Dennis Segers, QS Board Chairman; Jupp Kaufer, VP of Product Management and Corporate Quality, PowerCo / Source: QuantumScape
QuantumScape ended Q2 2025 with runway through 2029
All details outlined below are available in QuantumScape’s Q2 2025 Letter to Shareholders. Per the company, its capital expenditures were $8.3 million in Q2, primarily spend on facilities and equipment purchases to
prepare for higher-volume QSE-5 B1 sample production using the Cobra separator process mentioned above.
GAAP operating expenses and GAAP net loss in Q2 were $123.6 million and $114.7 million, respectively. Adjusted EBITDA loss was $63 million in Q2 (in line with expectations). Per the letter:
We continue to streamline operations consistent with the company’s capital-light licensing focus and capture gains from cost reduction initiatives and process improvement, including the Cobra process. We narrow the range of our full-year guidance for Adjusted EBITDA loss to $250M – $270M. We ended Q2 with $797.5M in liquidity and extend our guidance for cash runway into 2029, a six month improvement over our previous guidance. Any additional funds from other customer inflows or capital markets activity would further extend this cash runway.
As hinted above, QuantumScape’s Q2 2025 update also included news of an expanded deal with PowerCo, which entails the latter company contributing an additional $131 million to the former over the next two years. That amount will come in addition to the original $130 million committed by Volkswagen Group’s battery arm if and when QS delivers “satisfactory technical progress and execution of the full licensing agreement.”
In exchange for the additional funding, QuantumScape will prioritize QSE-5 cells manufactured on its San Jose pilot line to support its joint development agreement with PowerCo. That said, QS still maintains a non-exclusive arrangement and has the right to provide cells to our other customers.
Speaking of which!
QuantumScape’s Q2 2025 report also includes news of an additional joint development agreement (JDA) with “another major global automotive OEM.” Although QS did not name the OEM, it did say the JDA builds off an existing relationship, as the client was a solid-state sample customer. Unfortunately, QS keeps that client list close to its chest, so we’d rather not speculate on who the new joint development partner could be, but it’s exciting news nonetheless.
Looking ahead beyond Q2, QuantumScape is set on its second goal for 2025 – installing higher-volume cell production equipment to support scaled solid-state cell production. From there, QS is looking to ship more samples of its prototype cells and has shared a more concrete timeline for actual field testing. Per the letter:
We are working closely with our launch customer, and in Q2 we shipped QSE-5 cells for pack integration and testing, including safety testing. These cells were the final Raptor-based B0 samples to be shipped; future shipments will be Cobra-based B1 samples, in line with our third annual goal. This launch program is designed to be a low-volume, high-visibility project that will allow us to put our cells into a real-world vehicle application and generate customer feedback. We continue to target 2026 for the beginning of field testing.
That’s all for now. Be sure to check back with Electrek soon for the latest solid-state battery and other electric mobility news.
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