QuantumScape, a U.S.-based solid-state battery developer, reported progress in scaling its technology in its second-quarter 2025 update, including an expanded agreement with Volkswagen Group’s battery subsidiary PowerCo and the signing of a new joint development agreement with another global automaker.
The company said it has fully integrated its proprietary Cobra solid-state separator process into baseline production, a development it said supports high-volume output and aligns with its capital-light licensing model. “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,” QuantumScape stated in its shareholder letter.
Capital expenditures in the quarter totaled $8.3 million, primarily allocated to equipment and facility upgrades for the next phase of QSE-5 B1 sample production using the Cobra separator. The company reported a GAAP net loss of $114.7 million and an adjusted EBITDA loss of $63 million. Liquidity at quarter-end stood at $797.5 million, with the company extending its estimated cash runway into 2029. “Any additional funds from other customer inflows or capital markets activity would further extend this cash runway,” the company added.
QuantumScape also announced a revised agreement with PowerCo, under which the Volkswagen unit will invest an additional $131 million over the next two years, in addition to the $130 million committed in 2023. The new funding is contingent on “satisfactory technical progress and execution of the full licensing agreement.” In return, QuantumScape will prioritize delivery of QSE-5 cells produced at its San Jose pilot line for PowerCo. However, the company emphasized the deal remains non-exclusive, allowing it to work with other customers.
Additionally, QuantumScape disclosed a new joint development agreement with a second global automotive OEM, which it described as a follow-up to an existing relationship. While the company did not name the automaker, it noted that the partner had previously received solid-state cell samples.
Looking ahead, QuantumScape plans to install higher-volume production equipment and continue shipping prototype cells. “We are working closely with our launch customer, and in Q2 we shipped QSE-5 cells for pack integration and testing, including safety testing,” the company said. “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.” Field testing remains scheduled to begin in 2026.