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DATE

Wednesday, Oct. 21, 2026

CALL PARTICIPANTS

• Senior Director, Investor Relations - Sam Kamara
• Chief Executive Officer - Dr. Srinivasan Sivaram
• Chief Accounting Officer - Agnes Penn

TAKEAWAYS

• GAAP Net Loss -- $84.5 million, reflecting a reduction from the $105.8 million loss reported in the prior year third quarter.
• Adjusted EBITDA Loss -- $60.7 million, representing performance in line with management expectations for the quarter.
• Customer Billings -- $9.8 million, driven by the first recorded billings from the Honda agreement and the QuantumScape Advanced Solutions (QSAS) vertical.
• Liquidity -- $819.8 million, providing the company with capital to support ongoing development and the planned mass production scale-up.
• Capital Expenditures -- $4.4 million, primarily composed of investments into the technology roadmap and associated facility spending.
• Full Year Adjusted EBITDA Guidance -- a loss of $250 million to $275 million, which management reiterated as the target for the 2026 fiscal year.
• Full Year Capital Expenditures Guidance -- $27 million to $37 million, maintaining the previously stated range for the fiscal year.
• Mass Production Line Target -- 100 megawatt-hours, with production for the new line targeted to begin in 2028.
• Mass Production Equipment Cost -- less than $100 million, which the company aims to fund through nondilutive sources including customers and government grants.
• QS PowerBlock Power Density -- fourfold the reference specification from the Open Compute Project (OCP), demonstrating improved performance for AI data centers.
• QS PowerBlock Runtime -- fivefold the OCP reference specification, reflecting the energy density advantages of the solid-state platform.
• Thermal Stability -- over 300 degrees Celsius, compared to approximately 180 degrees Celsius for conventional lithium-ion batteries.
• QSAS Total Addressable Market -- up to $75 billion by 2030, covering defense, aerospace, medical devices, and consumer electronics applications.
• Research and Development Expenses -- $73.9 million, compared to $92.1 million in the same period last year.
• General and Administrative Expenses -- $18.5 million, down from $22.9 million in the third quarter of 2025.
• Interest Income -- $8.1 million, generated from the company's marketable securities and cash balances.
• Net Loss Per Share -- $0.14, based on 620.6 million weighted-average common shares outstanding.

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RISKS

• Sivaram stated, "Conventional lithium-ion batteries, including LFP batteries, are not thermally stable above approximately 180 degrees Celsius," which management noted can lead to catastrophic thermal runaway and slower deployment of critical infrastructure.
• Sivaram warned that defense customers are already observing restrictions implemented by foreign governments that limit their ability to procure advanced batteries for defense systems.

SUMMARY

QuantumScape Corporation (QS +4.27%) reported the launch of a planned 100 megawatt-hour mass production line in partnership with the M%C3%BChlbauer Group, targeting start of production in 2028. Management reported that the company entered the AI data center market with the introduction of the QS PowerBlock and recorded its first customer billings from both the Honda agreement and the QSAS vertical. The company stated that it continues to focus on transitioning its solid-state technology into commercial products across three business verticals while maintaining a capital-light licensing model for the automotive sector.

• The company established an ecosystem partnership with M%C3%BChlbauer Group to provide cell assembly equipment, with M%C3%BChlbauer engineers working on-site in San Jose to develop mass-production design enhancements.
• Sivaram noted that the ceramic solid-state separator enables an anode-free lithium-metal architecture that is cathode agnostic, which allows the company to target a common technology platform for all automotive customers.
• Management reported that the Eagle Line is fully operational and is producing increased volumes of QSE-5 cells for customer sampling and billings.
• Sivaram stated, "our cells are built in America and use supply chains that were designed from the beginning to avoid critical dependencies on Chinese suppliers of equipment or materials such as graphite."
• The company will host its third annual solid-state battery symposium in Kyoto, Japan, on Nov. 11 to provide further details on its next-generation technology platform and collaboration models.
• Management is evolving its relationship with Volkswagen PowerCo toward milestone-based payments and expanding the collaboration to include applications such as data centers and robotics.

INDUSTRY GLOSSARY

• QSDC: QuantumScape Data Center business vertical, focusing on energy storage for AI infrastructure.
• QSAS: QuantumScape Advanced Solutions business vertical, targeting defense, aerospace, and consumer electronics.
• QSE-5: QuantumScape's first commercial cell design.
• Eagle Line: The company's highly automated pilot production line used for customer sampling.
• OCP: Open Compute Project, a collaborative community focused on redesigning hardware technology to support growing demands on compute infrastructure.
• COBRA: A continuous flow process for separator production intended to enable scalable manufacturing.
• FEOC: Foreign Entity of Concern, a designation used to identify certain jurisdictions or entities that may pose risks to domestic supply chains.

Full Conference Call Transcript

Operator: Good day, and welcome to QuantumScape's Third Quarter 26 Earnings Conference Call. Sam Kamara, QuantumScape's Senior Director, Investor Relations. You may begin your conference.

Sam Kamara: Thank you, operator. Good afternoon and thank you to everyone for joining QuantumScape's Third Quarter 26 Earnings Call. To supplement today's discussion, please go to our Investor Relations website at ir.quantumscape.com to view our shareholder letter. Before we begin, I want to call your attention to the safe harbor provision for forward-looking statements that is posted on our website as part of our quarterly update. Forward-looking statements generally relate to future events, future technology progress, or future financial or operating performance. Our expectations and beliefs regarding these matters may not materialize. Actual results and financial periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected.

There are risk factors that may cause actual results to differ materially from the content of our forward looking statements, for the reasons that we cite in our shareholder letter, Form 10, and other SEC filings. Including uncertainties posed by the difficulty in predicting future outcomes. Joining us today will be QuantumScape CEO, Dr. Srinivasan Sivaram, and our chief accounting officer, Agnes Penn. Our chief financial officer, Kevin Hetrick, is recovering from a planned medical procedure. And Agnes will cover the financial portion of today's call. With that, I would like to turn the call over to Siva.

Srinivasan Sivaram: Thank you, Sam. We look forward to having Kevin back soon. And we wish him a speedy recovery. Let me start with a big news on cell manufacturing. In February of this year, we inaugurated the Eagle Line, And it has already become the workhorse of our customer engagement. Allowing an increased pace of customer sampling is flowing into customer billings. Our progress on demonstrating scalable production has given us the confidence to take the next step for production scale up beyond the design capacity of the Eagle line.

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 addition, we announced a QS ecosystem partnership with Mühlbauer Group, to provide cell assembly equipment for this planned line. Engineering work on higher throughput processes and equipment is already underway, and start up production for this new line is targeted for 2028. With Murata, Corning, and Mühlbauer, we have now announced partnerships with global players along the entire production flow. Representing an end to end solution for mass production of our technology as we work toward gigawatt hour scale production.

Next, I will provide an update on our 3 business verticals starting with QSDC. On October 8, we launched the QS power block. For AI data center, in conjunction with the open compute project global summit. The QS power block is an in rack energy storage reference design that enables AI data center architects to harness the improved energy density high power capability, and especially the improved safety profile of the QSE-5 cell. In testing, the QS power block demonstrated 4x the power density and 5x longer run time than the reference specification from OCP. This is a clear demonstration of the step change performance improvement provided by our technology. And the value we can offer AI data center customers.

Another important advantage of our ceramic solid state separator is its safety profile. In particular, its thermal stability. Conventional lithium ion batteries, including LFP batteries, are not thermally stable above approximately 180 degrees Celsius. 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 degrees Celsius. And we recently validated this result in customer testing as well as with third party lab testing. Next, an update on our automotive vertical, QSEV. 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 aligned with our automotive customers. We are aligning our capabilities and work with Volkswagen PowerCo with the goal of bringing them onto our long term technology platform that goes beyond QSE-5 and includes other applications. Our aim is to bring all of our automotive customers onto a common technology platform.

On November 11, we will announce more details on our next generation technology platform and collaboration model with automotive customers at our third annual solid-state battery symposium in Kyoto Japan. Next, an update on our QSAS business vertical. QSAS is engaged with customers across many advanced applications. 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 addressable market for QSC of up to $75 billion by 2030. We have shipped QSE-5 samples to customers in the defense, aviation, and telecommunications sectors, and we recorded our first customer billing from QSAS. This quarter.

1 important point of feedback from customers in defense is that supply chain vulnerabilities are not just a theoretical concern. They are already seeing restrictions put in place by foreign government which limit their ability to procure cutting edge batteries to power their advanced defense systems. This is a point of differentiation for QS. In addition to advantages in performance and safety, our cells are built in America and use supply chains that were designed from the beginning to avoid critical dependencies on Chinese suppliers of equipment or materials such as graphite. Finally, with Q3 behind us, I would like to take a look back at our execution so far on our 4 key goals for 2026.

These 4 goals were all focused on 1 strategic objective. Taking our solid state battery technology and turning it into products across multiple verticals. Our execution towards our goals has been strong. Our first key goal for 2026 is to demonstrate scalable production on the Eagle line. Eagle Line is fully operational, and is producing increased volumes of QSE-5 cells for our customers. This has allowed us to move to the next stage of scale up, with the announcement today of our 100 megawatt hour mass production line, and ecosystem partnership with the Mühlbauer Group. Our second key goal for 2026 is to advance automotive commercialization.

So far this year, we have announced our second named automotive partnership with Honda, We continue our engagement automotive development with Volkswagen PowerCo. And we have signed new agreements and expanding existing relationships with global players in automotive and mobility. Our third key goal for 2026 is to enter new high value markets And we are seeing strong interest in both our QSDC and QSAS verticals. With the QS power block, QSDC is addressing the need for high performance, safer, in-rack energy storage for advanced AI data center design. With QSAS, we are seeing broad interest across advanced applications, including defense, aviation, and telecommunications, and we have already begun generating customer billings from QSE-5 sample shipments.

Finally, in 2026, we promised to go beyond QSE-5 with an update on our technology road map, and we are pleased to announce that this will take place in conjunction with our third annual solid-state batteries symposium on November 11 in Kyoto, Japan. We are proud of the progress we have made so far in 2026. And while there is much work left to do, the whole team is focused on our mission to revolutionize energy storage. We look forward to sharing more updates soon.

Agnes Penn: Thank you, Siva. GAAP operating expenses and GAAP net loss in Q3 were $92.4 million and $84.5 million respectively. Adjusted EBITDA loss was $60.7 million in Q3 in line with expectations. For full year 2026, we reiterate our adjusted EBITDA loss guidance of between $250 million and $275 million. A table reconciling GAAP net loss and adjusted EBITDA is available in the financial statements at the end of this shareholder letter. Capital expenditures in the third quarter were $4.4 million Q3 CapEx was primarily composed of investment into our technology roadmap and associated facility spend. For full year 2026, we reiterate our guidance for CapEx to be between $27 million and $37 million Customer billings in Q3 were $9.8 million.

Customer billings as a metric represents the total value of all invoices issued by QS to our customers and partners in the period regardless of the accounting treatment. As a reminder, customer billings may vary from quarter to quarter due to fluctuations in activity, as we progress through various phases of engagement. This operational metric is not a substitute for revenue under US GAAP. Customer billings in Q3 included both automotive and non automotive customers and reflected the mix of development activities, payments from ecosystem partners, and sell shipments. We ended Q3 with 819.8 million in liquidity and will remain prudent with our strong balance sheet going forward.

As always, we encourage investors to read more on our financial information, business outlook and risk factors in our quarterly and annual SEC filings on our Investor Relations website.

Sam Kamara: Thanks, Agnes. We will begin today's Q and A portion with a few questions we have received from investors or that I believe would interest investors. Siva, today we announced a 100 megawatt hour production line as well as a partnership with Mühlbauer to provide cell assembly equipment. Why take this step now? And why Mühlbauer?

Srinivasan Sivaram: Sam, we have announced a QS power block at the OCP conference. And we have shipped cells to a number of aerospace and defense customers. The response from both markets has been very strong. These customers do not typically have their own cell manufacturing capacity, So we need to provide a manufacturing solution. The Eagle Line our highly automated pilot line, along with our COBRA process, is demonstrating scalable production. We are sampling to more customers, generating billing, and this pilot line is laying the groundwork for the next step up in scale. And for this step, it is crucial to bring in an ecosystem partner with deep experience in automation and cell manufacturing equipment development. To partner with us.

And that is where Mühlbauer comes in. When we take our material supply partners, separator partners, including Murata and Corning, and put that together with downstream cell assembly with Mühlbauer. That gives you an end to end process flow enabled by a set of world class experts. This line lets us serve high value markets directly while keeping our capital light licensing model for automotive.

Sam Kamara: This quarter, we recorded our first billings from Honda. And added a new agreement with a mobility manufacturer. Where does automotive commercialization stand? And what should investors expect for the rest of the year?

Srinivasan Sivaram: Sam, automotive continues to be a large and important market for us. On commercialization, in June, we announced our agreement with Honda. This quarter, we recorded our first billings from Honda. In Q3, we also added an agreement with a global player in mobility manufacturing. Beyond Honda and Volkswagen PowerCo, our active customer engagements include 2 other top 10 OEMs. As we have done on a regular basis, we are in the process of updating our statement of work with Volkswagen PowerCo. As part of that process, we have amended our collaboration agreement to eliminate transition payments and are working to add milestones tied to technology advancements. We continue to make substantive progress in advancing our technology platform.

And we are aligning our automotive customers to take advantage of Regarding our Kyoto event, I will not give too much away today, But keep in mind that our ceramic separator enables an anode free lithium metal architecture that is cathode agnostic. Getting the automotive industry aligned on this 1 platform positions us to become the de facto operating system. For the solid state battery industry. Creating enormous potential for value creation and capture. that is what we are aiming for. And I will save the rest for the symposium in Kyoto on November 11.

Sam Kamara: We launched the QS PowerBlock at the OCP Conference in San Jose. what is been the feedback from AI data center customers so far?

Srinivasan Sivaram: We are extremely excited about this market. And OCP was a great chance to get customer feedback. We heard 3 consistent themes. First, for data center architects, the role of energy storage is changing rapidly. I will use an automotive analogy. In the past, batteries were basically like a spare tire in a car. You carry it along, but you hope you do not need it. As we enter the 800-volt DC transition, and as single rack power is headed towards 1 megawatt, the battery is becoming more like a suspension system. It is working constantly to smooth things out, And without a suspension system, something will break pretty quickly.

This is a totally new use case, and data center architects need fundamental innovation to make it work. Second, for in-rack power, safety is the absolute priority. That means architects today are generally limited to using LFP batteries. And they are paying a big performance penalty to maximize safety. That gives us a clear opportunity to deliver systems that not only have longer run time and better power density, but also a safety profile that beats even LFP on thermal stability. Last, this transition is already happening. Customers want to see the QS PowerBlock in volume, And that is why we are announcing this 100 megawatt hour line today.

Start of production in 2028 aligns well with the data center industry timeline. And now is the time to take that next step up.

Sam Kamara: Okay. Thanks so much, Deva. We are now ready to begin the live portion of today's call. Operator, please open up the line for questions.

Operator: Thank you. To withdraw your question, please press 1-1 again. 1 moment for questions. First question comes from Winnie Dong with Deutsche Bank.

Winnie Dong: You may proceed. Hi. Thanks so much for taking my questions. First 1 is on the 100 megawatt hour line with Mühlbauer. Just curious to see what the economic arrangement might be in terms of, you know, who owns it, who pays, and then what does it do to the CapEx light model?

Srinivasan Sivaram: Winnie, thanks for asking the question. Just to put the Mühlbauer announcement in context and the 100 megawatt line in context, The longest lead time aspect of the project is designing, building, and installing the equipment. And now that you have started on that, we are announcing the plan 100 megawatt hour line today. And, obviously, the next question is where is this going to be? And on-site selection, the process is underway. We will keep it confidential as you would expect. And announce it at the appropriate time. We will provide a capital plan and. In the 2022 financial guidance on our Q4 earnings call. We are targeting equipment cost to QS of less than a $100 million.

But in terms of funding, are pursuing nondilutive funding sources, including customers, government, ecosystem, and licensing partners. And we will keep you updated.

Winnie Dong: Alright. that is helpful. And then you mentioned, you know, you recorded your first Honda billings in the third quarter. I was wondering if you can help size that And then what does that mean in terms of timeline to eventually signing a legacy agreement with them?

Srinivasan Sivaram: So, Winnie, let me by the way, finish up on point you asked earlier. So what happens to our capital light model with the 100 megawatt hour? And this deals back with your Honda question. We still are keeping our capital light licensing model to address markets such as automotive. That have their own manufacturing capacity. So our expectation is that whether it is with Volkswagen PowerCo or with Honda, we will be transferring technology to them so that they can ramp up their own production. Now with respect to products and product lines, as we are prone to do, those announcements have to come from our customers.

But the engagement with Honda has been very, very strong, and we are working very closely with them.

Winnie Dong: Perfect. Thank you. I will turn it back. Thanks.

Srinivasan Sivaram: Thanks, Winnie.

Operator: Thank you. Our next question comes from Mark Shooter with William Blair.

Mark Shooter: You may proceed. Congrats on the PowerBlock product launch. Just a quick question on that. I am just trying to get your thoughts on the application. So does the BBU--the product spec or, you know, application space is defined by high power, high pulse. You know, this is a very different vector space than what you have been optimizing for EVs, which is more long cycle life. Right? You mean, probably on the order of 1 thousand cycles. And more full depth discharge, not just the high pulse application. I understand that theoretically, lithium metal has far better power density.

But in practice in the lab, I am wondering what have you done to maybe retune the cell off of the EV design and optimize it for the BBU application?

Srinivasan Sivaram: Mark, you have perceptive. that is a very, very good question. The application for automotive use case is very different than in the BBU use case. Where we do not need to worry about low temperatures the occasional brownouts where you do full depth of discharges, probably a couple of times a month, if not a few times a year. Most of the time is used for high frequency ups and downs. And towards the middle of the of the charge. And discharge. And what we have done is shown a couple of specs that are remarkably good for our technology. First is power. How much power can I produce out of this?

And we are 4x better than anything that the OCP spec calls for. And then how much run time can I support? So when you get to be a megawatt hour rack, and you are taking care of ultra high frequency changes with capacitors, but the rest of it is supported by the battery. How much can you support on your own? And we found that compared to the spec, we have 5x longer run time. So the lithium metal technology naturally is a better fit for this application. But more important than anything else is safety.

You are sitting adjacent to very high value GPUs and people are ultra scared about putting an NMC battery or something that could cause a thermal runaway. Here, the better safety profile of the QSE-5 is a very, very good fit for them in the ability to withstand the thermal runaway. So in all, this is a very good fit and the QSE-5 seems to have found an interesting home.

Mark Shooter: Great. Thanks for the color, Siva. I appreciate that. Just to pivot to the 100 megawatt hour line announcement, congrats on that as well. I heard you also say to Winnie's question about $100 million in CapEx, and that is where you are seeing like the top end. What are you seeing behind the scenes that is changed that would have you divert from the CapEx light model that you were pursuing And VW, I believe, has right of first refusal on the first 5 gigawatt hours if they choose to take that. And I am just wondering are they in play here for the ownership, or who ends up developing this line? Who ends up owning the asset?

Srinivasan Sivaram: Yeah. So you are correct in pointing out that in our contract with PowerCo, they have a capacity to add nonautomotive applications. However, what has come out of this is how well the Eagle line has done. And remember, Volkswagen PowerCo is here with us developing it. They are in our shop working hand-in-glove that relationship is going well. But this equipment design is built on our advancements on the Eagle line. and will develop a full back end cell assembly line for us. that is the structure that we are going in. And we will be looking at, as you said, capital light model for any automotive applications that we do with either VW or with Honda.

And this line will be directed primarily at the high value applications. Such as aerospace, defense, and data center.

Mark Shooter: that is very helpful. Thanks. We should be looking at that as maybe a DOE stepping in for some nondilutive funding like we have seen in some of the private sector and maybe some other smaller battery players?

Srinivasan Sivaram: We have seen those. And we have seen other grants, loans, and many other instruments from the government being applied, and we will be looking at those as well. Great. Thanks, Siva.

Operator: Thank you. Our next question comes from Ben Kallo with Baird. You may proceed.

Ben Kallo: Hey, good evening. I was just--and congrats on everything. The Just in terms of automotive versus data center versus aerospace, could you just talk about, you know, how competitive the environment is versus In all 3 of those verticals? And thank you, guys.

Srinivasan Sivaram: Thank you. Thanks, Ben. So as you would expect, these markets are substantively different in their customer base. Especially with respect to the QS advanced solutions that covers defense aerospace, communications, etcetera. There, the supply chain is a big asset for us. A, we are a US based cell manufacturer. B, we constructed the supply chain to have no dependence on graphite. We do not have in our architecture any graphite. And we are partnering with as the government calls it, non-FEOC, non-foreign entities of concern, partners. So everyone of them is done with a friendly partner to go make this happen. So this is particularly relevant for our defense and aerospace applications.

And more and more, we see that even with the data center partners. That they are looking for a supply chain from a friendly source. Add on top of it the better safety profile. That makes us have some additional advantages over any competition. And then, of course, intrinsically, the cell is better in energy and power and all of the conventional applications that you would look for. Thank you.

Operator: Thanks, Our next question comes from Mark Delaney with Goldman Sachs.

Ayush Ghose: You may proceed. You have got Ayush Ghose on for Mark Delaney. Thanks for taking the questions. Congrats on the new production line and sort of, with that, how are you thinking about the relative timing of commercialization across the 3 verticals? And how, if at all, has that timing changed over the last year?

Srinivasan Sivaram: So the 100 megawatt hour line start of production is targeted by 2028. We are looking at both QSDC and QSAS as maybe a faster time to market than the more rigorous QSEV application. But that does not mean our targets for QSEV have changed. We are continuing to work with our partners with that same original target of getting it into revenue and commercialization. What we have done here is with an end to end solution for mass production with very trusted ecosystem partners like Murata, Corning, and Mühlbauer. Is to make sure we have a high confidence in us being able to address these high value markets very, very quickly.

Ayush Ghose: Thanks for the color there. Helpful. And then separately wanted to ask about VW given the restructuring efforts going on there. Can you speak to what, if any, implications that may have for PowerCo's relationship? And then separately, how do you see the relationship with PowerCo evolving here? You know, you noted aligning the statement of work beyond QSE-5. Thanks.

Srinivasan Sivaram: Yeah. Ayush, the relationship with PowerCo remains very strong. And the overall goal of the collaboration remains unchanged. But as you know, this partnership is constantly evolving. As we said last quarter, we are moving the PowerCo engagement towards milestone based payments, As part of this, we will also be expanding to cover other applications such as the data center and robotics. So overall, we are continuing to evolve this relationship towards these applications as well.

Ayush Ghose: Thank you for that. I will pass it on.

Operator: Thank you. Thank you. And as a reminder, to ask a question, please press Our next question comes from Gabriel Gonzales with UBS. You may proceed.

Gabriel Gonzales: Hey, team. Thanks for taking my questions. I guess so the decision to move forward with the 100 megawatt hour line it kind of suggests growing confidence in the demand across QSDC and QSAS. I guess, what sort of level of customer interest supports that decision? How many customers are currently testing samples, and over the next 12 months, what commercial commitments would you like to see?

Srinivasan Sivaram: Gabe, you are asking the right kind of questions. We have increasing confidence coming from 3 mutually orthogonal directions. First, when we introduce the power block and when we started sampling to multiple QSAS customers, across multiple verticals. The feedback has been very, very strong. And everyone has been asking for volume as soon as possible. Independently, we have obviously ramped up the Eagle line, and we are seeing the capability of the Eagle line to form as a foundation for the next higher level of step up.

The third is a partner such as Mühlbauer coming in and validating the Eagle Line and proposing a structure to ramp up from on top of it and taking ownership in this partnership. To get that going. All 3 of them put together give us the confidence The markets the demand from our customers, the confidence in the technology based on the Eagle Line, and the support of our ecosystem partners all give us the confidence to take this 100 megawatt hour step. Right now.

Gabriel Gonzales: And I guess just in the timeline between like an award win, to start of production, you know, in the Western markets in automotive, it is typically a 2 to 3 year timeline. Obviously, the data center is a completely different end market, but could we see some awards be announced within that 2027 timeframe before 2028 start of production.

Srinivasan Sivaram: You see how fast both of these markets are moving. The defense marketplace, drones, and other applications. Similarly on the data center marketplace. This BBU concept, for instance, was a novelty barely 9 months ago and already we are seeing racks being displayed in conferences. This is moving very, very rapidly. And we want to be there in the middle of it to take advantage of it. And that is why want to have started production in 2028, and we wanna have multiple customers signed up before that to make sure. That the uptake is there.

Gabriel Gonzales: Great. Thank you. And wishing Kevin a speedy recovery.

Srinivasan Sivaram: Thank you. Me too.

Operator: Thank you. I would now like to turn the call back over to Siva Sivaram for any closing remarks.

Srinivasan Sivaram: Thank you, operator. I would like to recognize the entire QS team for their execution this quarter, from the Eagle line to the launch of the QS PowerBlock, and the 100 megawatt hour line we announced today. Thank you to our shareholders for their continued support. And we look forward to updating you on our progress in the months ahead. Thank you.

Operator: Thank you. This concludes the conference. Thank you for your participation. You may now disconnect.