QuantumScape Plans 100 MWh Battery Line for Data Centers and Defense
Key Facts
QuantumScape announced plans on October 21, 2026 to establish a solid-state battery cell production line with capacity of 100 MWh, targeting AI data centers and the aerospace and defense sectors. The company said in a statement that Germany's Mühlbauer Group would supply cell assembly equipment as part of their partnership to develop the manufacturing system. The two sides have begun engineering work on higher-throughput processes and equipment in preparation for the planned line. This followed Mühlbauer's assessment of manufacturing processes at QuantumScape's "Eagle Line." The German group developed improvements to those processes to prepare them for mass production, according to the statement. The company's plan thus combines preparations for new manufacturing capacity with efforts to target applications for its batteries in electrical infrastructure for data centers, aerospace and defense.
On the customer front, QuantumScape said in its shareholder letter that it had shipped cell samples to customers in the defense, aerospace and telecommunications sectors. It also signed an agreement with a new customer it described as a prominent global player in mobility manufacturing. In the automotive sector, the company recorded its first billings under the Honda agreement in the third quarter of 2026. Total customer and partner billings for the period reached $9.8 million, according to the shareholder letter. This amount includes billings for development work, partner payments and cell shipments, and does not equate to accounting revenue. These commercial developments came alongside manufacturing expansion work and included a new agreement, sample shipments and billings collected through the company's relationships with customers and partners.
For data center applications, QuantumScape said its "PowerBlock" reference design achieved "4 times the power density" and "5 times the runtime" in its tests compared with the Open Compute Project's Open Rack specification, version 3. The company's comparison was based on prototype testing and simulations of system configurations under controlled conditions. The design supports an 800-volt direct-current electrical architecture, according to the product announcement. The company said integrating it with advanced power system components could enable power delivery to 1 MW data center racks. In safety tests conducted by customers and third parties, QuantumScape said its cells demonstrated "thermal stability well beyond 300 degrees Celsius." The company compared this with conventional lithium-ion cells, which it said typically enter catastrophic thermal runaway near 180 degrees Celsius. QuantumScape presents these characteristics as part of a design for energy storage within data center racks, combining power density, runtime and the stated thermal safety specifications.
Financially, QuantumScape's operating expenses totaled $92.4 million in the third quarter of 2026, according to the shareholder letter. It posted a net loss of $84.5 million for the period under generally accepted accounting principles. Its adjusted loss before interest, taxes, depreciation and amortization was $60.7 million, which the company said was in line with its expectations for the period. Quarterly capital expenditure totaled $4.4 million as engineering work progressed on higher-throughput manufacturing equipment and processes. QuantumScape ended the quarter with liquidity of $819.8 million as it continued manufacturing development work and engagement with customers in automotive and other sectors.
The company maintained its guidance for a 2026 adjusted loss before interest, taxes, depreciation and amortization of between $250 million and $275 million. It also kept its annual capital expenditure forecast within a range of $27 million to $37 million. On technology development, QuantumScape plans to unveil details of its next platform at the Solid-State Battery Symposium in Kyoto on November 11, 2026. The forthcoming update will include its model for collaboration with automotive customers, alongside details of the technology platform, according to the shareholder letter. For the new line, the company said in its statement that "cell production is targeted to begin in 2028."