AI Earnings Predictions for QuantumScape Corporation (QS)

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Exhibit 99.1

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Dear shareholders,

We’re excited to provide an update on our progress over the past quarter.

Eagle Line Update

We inaugurated the Eagle Line pilot cell production line in February of this year, and it has already become the workhorse of our customer engagement, allowing an increased pace of customer sampling which is flowing into customer billings. Our progress on demonstrating scalable production has given us the confidence to take the next steps for production scale-up beyond the designed capacity of the Eagle Line.

Today we announced a QS ecosystem partnership with Muehlbauer Group to provide cell assembly equipment for a planned 100 megawatt-hour (MWh) cell production line. This 100-MWh line will represent the first commercial-scale mass production of QS cells, with output aimed at meeting the rapidly emerging opportunities for our QSDC and QSAS business verticals. Engineering work on higher-throughput processes and equipment is already underway and start of production for this new line is targeted for 2028.

Muehlbauer Group is a highly respected German provider of manufacturing and automation equipment. Working on site in San Jose, their engineers evaluated the Eagle Line pilot processes for scalability and readiness and developed design enhancements to bring the technology to mass production, beginning with this 100-MWh line and working toward gigawatt-hour scale.

QS CEO and President Dr. Siva Sivaram (right) and Muehlbauer Group CEO Josef Markus Mühlbauer signing the QS ecosystem partnership in San Jose.

AI Data Center – QSDC Update

On October 8 we launched the QS PowerBlock for AI data centers in conjunction with the Open Compute Project (OCP) Global Summit in San Jose, California, a leading forum for AI data center solution providers. The QS PowerBlock is an in-rack energy storage reference design that enables AI data center architects to harness the improved energy density, high power capability and improved safety profile of the QSE-5 cell. The modular QS PowerBlock design allows the same basic concept to be applied across a variety of rack geometries and enables each AI data center customer to adapt QS technology to their particular needs and use cases.

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In testing, the QS PowerBlock demonstrated 4x the power density and 5x longer runtime than the reference specification from OCP based on conventional lithium-ion battery systems. This is a clear demonstration of the step-change performance improvement provided by QS technology and the value we can offer AI data center customers.

The QS PowerBlock design in a mockup module configuration at the Open Compute Project Global Summit 2026 in San Jose, California

Another important advantage of our ceramic solid-state separator is its safety profile, in particular its thermal stability. Conventional lithium-ion batteries are not thermally stable above ~180 °C, leading to the risk of catastrophic thermal runaway and making insurance and regulatory approval more onerous, which slows down deployment of critical AI infrastructure. In contrast, QS solid-state batteries have been shown to be thermally stable well over 300 °C, as validated in customer and third-party lab testing in Q3.

We will be integrating the QS PowerBlock with rack-level power electronics and battery management systems to allow the QS PowerBlock to serve AI workloads in the data center production environment. We are already engaged with technology partners in these ecosystems.

Automotive Commercialization – QSEV Update

Engagement on automotive cell development continues to be robust across our global automotive customers. In Q3 we recorded our first customer billings from the Honda agreement announced in June. This agreement encompasses joint development work to integrate our solid-state platform into Honda’s technology roadmap.

In addition, we have signed an agreement with a new customer to further advance automotive commercialization. This agreement is with a leading global player in mobility manufacturing whose applications and requirements are in line with our automotive customers. We are aligning our statement of work with VW PowerCo with the goal of bringing them onto our long-term technology platform that goes beyond QSE-5 and includes other applications such as data centers and robotics. Our aim is to bring all our automotive customers onto a common technology platform.

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On November 11 we will announce more details on our next-generation technology platform and collaboration model with automotive customers at our 3rd annual Solid-State Battery Symposium in Kyoto, Japan.

Defense, Aerospace and Advanced Solutions – QSAS Update

Our QSAS business vertical is engaged with customers across a wide variety of application areas: defense, aerospace, medical devices, consumer electronics, and more. We believe this diversity of applications offers an attractive opportunity set for our QSE-5 platform, with a total a

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EX-99.1

Exhibit 99.1

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Dear shareholders,

We’re pleased to provide you with an update on our activities over the past quarter.

Automotive Commercialization Update

We’re proud to report that we have taken a major step forward on automotive customer engagement: on June 18, we announced a partnership with Honda. This is a multi-year agreement aimed at advancing our solid-state lithium-metal battery technology for automotive and other applications in the Honda product portfolio.

Honda is a Top-10 global automaker renowned for its engineering excellence and product quality and has made significant investments in scaling up solid-state battery manufacturing capabilities. This partnership results from one of the most rigorous assessments of our technology to date. Our ceramic separator and anode-free lithium-metal architecture enables QS to provide solutions to unlock the full potential of solid-state batteries. With Honda’s diverse product portfolio, this collaboration also allows us an additional pathway to expand into new high-value markets.

QS technology demonstrated compelling and unique advantages during our evaluation. We see potential for QS technology to add value across a range of applications, including automotive, and we are excited to move forward into the next phase of our partnership.

- Atsushi Ogawa, Chief Operating Officer, Research Center of Excellence, Honda R&D Co., Ltd.

QS CEO and President Dr. Siva Sivaram with Atsushi Ogawa, Chief Operating Officer, Research Center of Excellence, Honda R&D Co., Ltd. at the QS Solid-State Battery Symposium in Kyoto, Japan

Additionally, we recently updated our ongoing collaboration and licensing arrangement with Volkswagen PowerCo with an amended set of milestones and payments focused on automotive cell development, larger format cells and our future technology roadmap. We are also working with two other Top-10 automotive OEM customers under existing joint development agreements. We continue to strengthen our relationships with automakers in North America, Europe and Japan, and on this front, we have shipped cells to an additional automotive OEM customer.

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New High-Value Markets

We see broad-based interest in our technology across a variety of applications beyond electric vehicles, including AI data centers and other advanced applications such as aerospace and defense. We believe that all these end markets can be served by our fundamental technology stack, but each customer can benefit from an individually tailored go-to-market approach. In order to serve our diverse and growing customer base, we are establishing three business verticals: QSEV for electric vehicles, QSDC for AI data centers, and QSAS for advanced solutions in applications such as aerospace and defense.

QSDC is tasked with moving rapidly to create solutions for AI data center customers based on our solid-state battery technology. As the power demands for AI compute racks approach the megawatt threshold, their power systems require innovative technologies to overcome the limitations of legacy designs. This reimagining of AI data centers is being built on the 800V DC architecture pioneered in the automotive industry, and we believe the improved energy density, power performance and safety profile of QS battery technology presents a compelling value proposition for this market. QSDC is engaged with original design manufacturers (ODMs) to design solutions based on QSE-5 technology for this fast-moving market.

QSAS is aimed at meeting the demand for better batteries in applications such aerospace and defense. In addition to valuing the energy density, power performance and safety profile of our technology, customers in this vertical place a special emphasis on limiting supply chain vulnerabilities. This presents a particular challenge for conventional Li-ion technology, the supply chain for which is dependent on graphite anode material that is almost exclusively sourced from China. In contrast, QS technology enables an anode-free lithium-metal architecture, which eliminates this supply chain risk. QSAS recently has shipped QSE-5 cells to a major American defense prime and is engaged with global players across the aerospace and defense industries.

We welcomed Shahar Noy as Vice President and General Manager of QSDC. He has broad experience across the semiconductor and data center industries, serving at Broadcom, SanDisk, Micron, Marvell and most recently MediaTek.

George Hart is General Manager of QSAS and Vice President of Strategy & Product. He has also held leadership positions at QS in operations and supply chain. He previously served at the RAND Corporation and holds an MBA from Harvard Business School.

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Eagle Line Update

Work continues on one of the most important operational goals for 2026: demonstrating scalable production of QS technology using the Eagle Line, our highly automated pilot production line in San Jose. The Eagle Line serve

EX-99.1

2 qs-ex99_1.htm

EX-99.1

EX-99.1

Exhibit 99.1

1

Dear shareholders,

We’re excited to provide an update on our activities over the past quarter.

Eagle Line Update

Eagle Line is our highly automated pilot production line to demonstrate scalable production of our solid-state lithium-metal battery technology. In Q1, we completed installation of the Eagle Line and commenced start-up operations. We are producing initial volumes of QSE-5 cells, and we have been working to continuously improve all aspects of Eagle Line functionality, such as equipment uptime, line throughput, control systems, data integration and process stability.

We have been integrating advanced AI models into the Eagle Line, and we have seen substantive progress on cell quality and reliability. Combined with sophisticated in-line metrology, we have improved real-time control to enable enhanced cell performance. We believe that the increased capacity of the Eagle Line will help drive a virtuous cycle of higher data volume, more rapid learning cycles and increasing production quality.

In addition to demonstrating scalable production, Eagle Line will help enable customer shipments of QSE-5 cells. In Q2 we plan to ramp QSE-5 cell production to support customer programs across automotive and other applications.

Automated production equipment on the Eagle Line

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Commercial Update

Automotive

Development work for EV applications remains our core focus and our largest source of customer billings. We continue to work closely with the Volkswagen Group’s PowerCo as we advance through the phases of our automotive commercialization roadmap. The next phase is field testing: cells from the Eagle Line will be put through a demanding set of real-world test conditions, and the customer feedback will be used to learn and iterate.

Beyond our work with Volkswagen, in Q1 we shipped cells to an automotive JDA partner for testing. We continue to work through our two JDAs with Top-10 global automotive OEMs to bring our solid-state lithium-metal technology into their vehicle programs.

In addition, this quarter we successfully completed our technology evaluation with another Top-10 global automotive OEM customer. As part of this evaluation, their engineers performed hands-on evaluation of our technology and ran competitive benchmarking tests against other solid-state technology approaches. With the success of the technology evaluation, we are moving into the next phase of this engagement: joint development activities with the ultimate goal of deploying QS technology in their automotive and other applications.

QS Ecosystem

The QS ecosystem is the cornerstone of our capital-light business model. By teaming up with world-class companies across the value chain, we can bring our technology to global scale faster and more efficiently. These alliances are a force multiplier for our commercialization efforts as we distribute our technology know-how to trusted partners.

We continue to work closely with both Murata Manufacturing and Corning on scaling up production of our solid ceramic separator using our groundbreaking Cobra process. QS engineers are holding regular technical meetings with Murata and Corning across multiple parallel workstreams as we work to develop and build the global value chain necessary for GWh-scale production of QS technology to serve automotive and other customers.

Our ecosystem partners are also investing in QS-proprietary hardware and systems to produce our ceramic separator, and we see this as a clear sign of their commitment to our ecosystem as well as a source of customer billings. In Q1 we recorded our first customer billings from our ecosystem.

“We’re optimistic that we can help customers deliver a better battery at a competitive price. That’s huge – not just for EVs, but for consumer electronics, medical devices, military applications, and even grid storage applications. The demand for batteries is growing

exponentially. We’re excited to bring our solutions to the forefront.”

- Jamie Huang-Chu, Program Director of Energy Materials, Corning Incorporated

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New Markets

In addition to our automotive business, we are ramping up our engagements in new markets. We believe our high performance solid-state design has compelling attributes to address the evolving energy-storage needs of AI data centers, where conventional lithium-ion technology faces safety and performance limitations. Driven by massive compute demand, data centers are transitioning to 800V DC designs and adopting power systems architecture and technology from the electric vehicle industry. We see this as a natural fit for our no-compromise solid-state battery. In-rack energy storage and power delivery for AI data centers is a large and fast-growing market, and the higher energy density of our battery technology can enable increased compute density of AI data centers.

In addition, we have seen strong customer interest in our battery technology from global pla