QuantumScape Corporation (NYSE:QS) Q2 2023 Earnings Call Transcript

And that will — if they are successful, incrementally move out the energy power frontier curve up and to the right. But we believe that lithium ion is a pretty mature technology, and there’s — not a lot of juice left there to squeeze out, so to speak, whereas what the solid-state lithium metal approach represents is a new approach with a new chemistry where we’re just starting out. So our QSE-5, that dark blue curve on that power energy frontier chart. That’s the beginning of our S-curve. So we believe that as we, for example, increase the sell side, the larger areas, as we add other optimizations, we just go up from there and further expand the gap.

Ben Kallo: Thank you.

Jagdeep Singh: Of course.

Operator: We’ll take our next question from Jordan Levy with Truist Securities.

Jordan Levy: Afternoon, all, and appreciate you taking my questions. I apologize if you already covered this, but I just wanted to see if you could give a little color on the process of first getting Raptor online and what goes into that. But then more importantly, kind of the hurdles and complexities of the process once you move from Raptor to Cobra, is, is that more or less of a complexity from a process perspective than getting wrapped or going? Or is it kind of just a matter of scale and volume?

Jagdeep Singh: Yes, it’s a great question. So with Raptor, as we’ve mentioned, we now already have installed the main tool that we use for Raptor. So that part of it, we believe, is in good shape. We’re making films now, and we’re pleased with the — with what we’re seeing from that process. And it’s very exciting because it’s a step change in the process that allows us to process films more quickly with higher throughput and we believe better economics. What Cobra does is take the same basic framework of Raptor in terms of how we’re doing the films, but adds to it the ability to run at even higher throughputs — and so we think that Cobra is an extension. The Raptor would kind of build on Raptor. And in addition to that, we’ve already built the first Cobra prototypes in-house, and they too are showing very promising results.

So we think that at the end of the day, these two processes, which are really the same family of process, actually simplify the complexity of what we’re doing today. And that’s why they allow us to run faster and 1 more efficiently with better longer-term economics.

Jordan Levy: Thanks for that. And just as a follow-up, should we think about from the consumer electronics side? I know you’ve mentioned you’re working with a few partners there that you ship sells to. I’m just curious if we should think of Cobra as a time when you can start selling into that space or how you’re thinking about that?

Jagdeep Singh: Yes. So I think what we’ve said is that we expect to use COBRA were the low-volume B samples that come out next year. I apologize. I apologize. Maybe we said we expect to use Raptor. Thanks, Kevin, for correcting me. Expect to use Raptor, which is the first generation for the low-volume B samples that come out next year and COBRA for the higher volume versions of the B-samples that come out again in 2025. Relative to consumer versus automotive. I think the main point we’re making there is that the same functionality that we offer in our battery, which is higher energy density and higher power density and so on are of interest in multiple sectors and that basically creates optionality for us that we think is a good thing for us to have.