QuantumScape is finally building a production line of its own, but its first customers may be AI data centers, not carmakers. The San Jose, Calif., solid-state battery developer said on Wednesday, Oct. 21, 2026 that it plans a 100 megawatt-hour (MWh) cell production line, with cell production targeted for 2028. German automation company Muehlbauer Group will supply the cell assembly equipment.
What's planned
QuantumScape said Muehlbauer evaluated the processes on its Eagle Line pilot facility in San Jose and is designing higher-throughput equipment for the new line. "The Eagle Line proved to us that QuantumScape's solid-state technology is ready to scale to the next level," Muehlbauer CEO Josef Markus Mühlbauer said.
On the Q3 earnings call, CEO Siva Sivaram said the company is targeting equipment costs below $100 million and is seeking non-dilutive funding from customers, governments and partners, MarketBeat reported. No site has been picked yet. A capital plan and 2027 guidance are due with Q4 results.
Why not cars first?
The line will mainly serve QuantumScape's data-center and "advanced solutions" businesses, including its QS PowerBlock in-rack storage for AI data centers. "This line lets us serve high-value markets directly while keeping our CapEx-light licensing model for automotive," Sivaram said. Automakers such as Volkswagen's PowerCo and Honda would still make cells themselves under license.
The numbers
For Q3, QuantumScape reported a GAAP net loss of $84.5 million, $9.8 million in customer billings and $819.8 million in liquidity at quarter-end, per MarketBeat's call summary. It kept full-year adjusted EBITDA loss guidance at $250 million to $275 million.
Battery storage for AI computing is a growing business for Tesla too; see our story on xAI's Megapack purchases.