QuantumScape NYSE: QS executives highlighted progress on its automated pilot production line, early customer billings from ecosystem partners, and expanding interest beyond automotive during the company’s first-quarter 2026 earnings call.
Eagle Line installation completed; Q2 ramp planned
CEO Dr. Siva Sivaram said the company completed installation of its “Eagle Line” in the first quarter and began startup operations. The Eagle Line is QuantumScape’s “highly automated pilot production line” intended to demonstrate scalable manufacturing of its solid-state lithium-metal battery technology.
According to Sivaram, QuantumScape is producing initial volumes of its QSE-5 cells and is focusing on improving “equipment uptime, line throughput, control systems, and process stability.” He added that the company has been integrating advanced AI models into the line and said it has seen “substantive progress on cell quality and reliability,” attributing improvements to faster and more consistent quality determinations using metrology data.
Looking ahead, Sivaram said QuantumScape plans to ramp QSE-5 production in the second quarter to support customer programs “across automotive and other applications.” Responding to Deutsche Bank’s Winnie Dong about the pace of the ramp, Sivaram said the company would begin ramping in Q2 and “continue to go up satisfying these demands through the rest of the year,” citing ongoing demand for samples from both automotive customers and prospective new markets.
Automotive remains core, with field testing the next phase
Sivaram reiterated that EV development remains the company’s core focus and “largest source of customer billings.” He said QuantumScape continues to work closely with Volkswagen Group’s PowerCo and described “field testing” as the next step in the automotive commercialization roadmap, with cells from the Eagle Line expected to be tested under “real-world test conditions.”
During Q&A, Sivaram told William Blair’s Mark Shooter that field testing with Volkswagen will use the QSE-5 cell. He added that Volkswagen is also working with QuantumScape to design a cell for VW’s unified cell architecture, and he expects other OEMs will seek their own form factors. Sivaram said QuantumScape’s licensing model supports this flexibility because its separator can handle different form factors.
QuantumScape also described expanding engagement with additional automotive partners. Sivaram said the company shipped cells in Q1 to an automotive joint development agreement (JDA) partner for testing. He also said QuantumScape completed a technology evaluation with another top-10 global automotive OEM and is moving into joint development activities with the goal of deploying the technology in automotive and other applications.
In a later exchange, Sivaram said four of the world’s top 10 auto OEMs are “actively involved” with QuantumScape across North America, Japan, and Europe. He characterized customer progress as moving from evaluation to joint development and then toward licensing, with Volkswagen the most advanced. He also emphasized that the Eagle Line is important to supporting sampling and advancing customers toward licensing.
Ecosystem model produces first partner billings in Q1
Management also pointed to progress on its “QS ecosystem,” which the company describes as the foundation of its capital-light approach to scaling. Sivaram said QuantumScape continues working with Murata Manufacturing and Corning to scale production of its ceramic separator using the Cobra process. He added that ecosystem partners are investing in QuantumScape proprietary hardware and systems to produce the separator, which he framed as both a sign of commitment and “a source of customer billings.”
In Q1, QuantumScape recorded what it said were its first customer billings from ecosystem partners. CFO Kevin Hettrich called the milestone important for three reasons: it indicates partner investment in the technology platform, it provides an additional source of cash flow as the company transfers equipment and know-how while retaining ownership of core technology, and it supports longer-term plans for “ecosystem licensing payments and royalties.”
Hettrich and Sivaram both reiterated that “customer billings” is an operational metric that reflects the total value of invoices issued during the period “regardless of accounting treatment,” and that it is not a substitute for GAAP revenue.
New markets: AI data centers and defense-related demand
Sivaram said QuantumScape sees its solid-state design as a fit for AI data centers, particularly as data centers shift toward 800-volt DC architectures and adopt power-system approaches from the EV industry. He pointed to the potential for higher energy density to increase compute density in “AI factories,” along with the importance of safety in higher-temperature environments where a fire could lead to significant damage and downtime.
In response to investor questions facilitated by IR head Sam Kamara, Sivaram said the AI data center opportunity is “early days” but “a great addition to our automotive portfolio,” citing market growth, product-market fit, and the company’s ability to create and capture value. He described AI workloads as demanding from a battery perspective and said QuantumScape’s technology could enable “last-meter power” delivery by placing energy storage closer to compute.
Sivaram also said QuantumScape is seeing strong interest from “global players in the military, aerospace, and government sectors,” citing a combination of energy density, power capability, and safety. He noted supply chain considerations as well, emphasizing QuantumScape’s graphite-free design compared with conventional lithium-ion batteries that rely on graphite “almost exclusively sourced from China.”
As the company staffs for these markets, Sivaram said QuantumScape added Ross Niebergall to its board and Dr. Mark Maybury as an advisor to help pursue opportunities in these areas. He also told analysts the company will ship samples from the Eagle Line to meet inbound interest.
Asked by HSBC’s Laisha Zaack whether new markets could affect automotive timelines, Sivaram said automotive remains a key focus and the company is “adding these additional markets to our automotive portfolio,” not shifting away from EV efforts. He said resourcing for these opportunities was included in the company’s annual operating plan, describing the approach as “not an either/or.”
Financial results: losses, guidance reiterated, liquidity near $905 million
Hettrich reported GAAP operating expenses of $109.2 million and a GAAP net loss of $100.8 million in Q1. Adjusted EBITDA loss was $63.2 million, which he said was “in line with expectations.”
QuantumScape reiterated full-year 2026 guidance for an adjusted EBITDA loss of $250 million to $275 million. Capital expenditures were $10 million in the first quarter, “primarily composed of final payments related to the Eagle Line,” and the company reiterated its full-year CapEx guidance of $40 million to $60 million.
Customer billings were $11 million in Q1, which Hettrich said reflected “a mix of customer development activities and ecosystem partner payments.” In response to Goldman Sachs’ Ayush Ghosh (on for Mark Delaney), Hettrich noted that fiscal 2025 customer billings were approximately $19.5 million and said the company continues to guide to billings increasing year over year in 2026 versus 2025.
QuantumScape ended the quarter with $904.7 million in liquidity, and Hettrich said the company expects to remain “prudent” with its balance sheet.
About QuantumScape NYSE: QS
QuantumScape Corporation is a development-stage company specializing in the research and commercialization of next-generation solid-state lithium-metal batteries for electric vehicles. The company's core technology replaces the traditional liquid electrolyte with a solid ceramic separator, aiming to deliver higher energy density, faster charging times and enhanced safety compared to conventional lithium-ion cells. QuantumScape's product roadmap focuses on enabling electric vehicle manufacturers to extend driving range and reduce charging downtime, addressing key barriers to widespread EV adoption.
Founded in 2010 and headquartered in San Jose, California, QuantumScape has attracted significant strategic investment and formed partnerships with leading automotive OEMs.
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