Oct 21, 2026 earnings call — Announced mass production line and PowerBlock launch
Announced a 100 megawatt hour mass production line to serve QSDC and QSAS markets, targeting start of production in 2028.
EPS $-0.14 (est $-0.17)
Key quotes
"Today, we announced a 100 megawatt hour mass production line with output aimed at meeting the rapidly emerging opportunities for our QSDC and QSAS business verticals"
"In testing, the QS power block demonstrated 4x the power density and 5x longer run time than the reference specification from OCP."
"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."
Analyst Q&A 5
who pays and CapEx impact
Q (Winnie Dong · Deutsche Bank): They asked who will own and pay for the 100 megawatt hour line and whether it breaks QS's capital-light model. They also asked how large the Honda billings were and if that leads to a long-term agreement with Honda.
A: Management said the longest lead time is designing, building, and installing the equipment and site selection is confidential. They said they are targeting equipment cost to QS of less than a $100 million and are pursuing nondilutive funding from customers, government, ecosystem, and licensing partners. They also said they will keep the capital-light licensing model for automotive and transfer technology so partners like Volkswagen PowerCo or Honda can ramp their own production.
"We are targeting equipment cost to QS of less than a $100 million." — Srinivasan Sivaram (CEO)
PowerBlock fit vs EV cells
Q (Mark Shooter · William Blair): He asked how the PowerBlock (BBU) application differs from EV cells and whether QS retuned the cell for high power, high pulse use. He also asked who will own the new 100 megawatt hour line and whether VW/PowerCo is involved.
A: Management said the BBU application is very different from automotive and that QSE-5 naturally fits BBU because it delivers much higher power and longer run time and has a better safety profile next to GPUs. They said they are 4x better than the OCP power spec and have 5x longer run time versus the spec, and that Volkswagen PowerCo is working with QS on the Eagle line while the 100 megawatt hour line will be directed primarily at high value nonautomotive applications.
"And we are 4x better than anything that the OCP spec calls for." — Srinivasan Sivaram (CEO)
competition across end markets
Q (Ben Kallo · Baird): He asked how competitive QS is across automotive, data center, and aerospace markets.
A: Management said the markets are substantively different by customer and requirements. They said their supply chain is a big asset: they are a US-based cell manufacturer, they built a supply chain with no dependence on graphite and partner with friendly, non-foreign entities of concern, and the better safety profile gives them advantages; the cell is also intrinsically better in energy and power.
"We do not have in our architecture any graphite." — Srinivasan Sivaram (CEO)
commercial timing and PowerCo relation
Q (Ayush Ghose · Goldman Sachs): He asked the timing for commercialization across the three verticals and whether timing has changed. He also asked about any implications from VW restructuring for the PowerCo relationship and how that relationship will evolve.
A: Management said the 100 megawatt hour line start of production is targeted by 2028 and that QSDC and QSAS may reach market faster than QSEV while QSEV targets remain unchanged. They said the relationship with PowerCo remains very strong, they are moving PowerCo engagement toward milestone-based payments, and they will expand the collaboration to cover other applications such as data center and robotics.
"So the 100 megawatt hour line start of production is targeted by 2028." — Srinivasan Sivaram (CEO)
customer interest and commitments
Q (Gabriel Gonzales · UBS): He asked what level of customer interest supports the 100 megawatt hour decision, how many customers are testing samples, and what commercial commitments they want in the next 12 months; he also asked if awards could appear before 2028.
A: Management said they have growing confidence from three directions: strong feedback from sampling multiple QSAS customers asking for volume, the Eagle line proving capability, and Mühlbauer validating and proposing a ramp structure. They said these factors give them confidence to take the 100 megawatt hour step, that the markets are moving very rapidly, and they want multiple customers signed up before production starts in 2028.
"And everyone has been asking for volume as soon as possible." — Srinivasan Sivaram (CEO)