Related Party Transactions |
9 Months Ended |
|---|---|
Sep. 30, 2026 | |
| Related Party Transactions [Abstract] | |
| Related Party Transactions | Note 10. Related Party Transactions In July 2025, the Company entered into an Amended and Restated Collaboration Agreement (the “PowerCo Collaboration Agreement”) with PowerCo SE (“PowerCo”), a battery cell company wholly owned by the Volkswagen Group, which is a major investor in the Company, for the industrialization by PowerCo of QS technology based on QSE-5. Under the PowerCo Collaboration Agreement, QS and PowerCo entered into a statement of work outlining the scope and responsibilities of the joint scale-up team working on the Company’s battery development. In July 2026, the Company and PowerCo entered into an amendment (the “July 2026 Amendment”) to the PowerCo Collaboration Agreement to update the program structure and milestones. The July 2026 Amendment replaced the prior statement of work and related cost reimbursement structure with transition payments and payments based on the achievement of milestones, including the delivery and validation of battery cells over the next two years. Under the July 2026 Amendment, the maximum aggregate amount the Company would receive from PowerCo for the program was $75.4 million, inclusive of amounts paid to date. The PowerCo Collaboration Agreement and the July 2026 Amendment do not require the Company to repay funds contributed under the statement of work, and there are no restrictions on the use of the cash receipts. The Company determined that such payments should be accounted for in accordance with ASC 730-20 Research and Development Arrangements, as there is a presumption of a repayment obligation due to the significant related party relationship between the parties. Further, ASC 470-50 Debt – Modifications and Extinguishments indicates extinguishment transactions between related entities may be in essence capital transactions. During the three and nine months ended September 30, 2026, the Company received $18.5 million and $28.9 million, respectively, from PowerCo and such amount was recorded as a capital contribution to Additional Paid-In Capital in the Consolidated Statement of Stockholders’ Equity upon legal extinguishment. No shares were issued related to this capital transaction. In October 2026, the Company and PowerCo further amended the PowerCo Collaboration Agreement to, among other things, remove transition payments due from PowerCo in the aggregate of $7.0 million, reducing the maximum amount the Company can receive under the current PowerCo Collaboration Agreement, and enter into negotiations for a revised scope of work and payments. During this negotiation period, PowerCo will not make milestone payments under the July 2026 Amendment. |