Investment Rating - The report provides a recommendation for the industry [5]. Core Insights - The report highlights the expansion of the collaboration agreement with PowerCo, which includes additional payments of up to $131 million over the next two years to support joint commercialization efforts [1][2]. - The upgraded agreement allows PowerCo to produce up to an additional 5 GWh of QS batteries annually, totaling up to 85 GWh, and grants rights to license certain advanced QS technologies beyond the first-generation QSE-5 platform [2]. - The company has signed a joint development agreement with another major global automotive OEM, enhancing its collaboration and aiming for commercialization and licensing agreements [3]. - The company is making significant progress in its production capabilities, having replaced the Raptor process with the Cobra process for membrane production, which is expected to improve efficiency and productivity [6]. - Financial outlook indicates a capital expenditure of $8.3 million in Q2, with a revised annual capital expenditure forecast of $45 million to $65 million [7]. Summary by Sections Collaboration and Agreements - The report details the expansion of the PowerCo agreement, which includes milestone-related payments and prioritization of QSE-5 battery production from the San Jose pilot line [1][2]. - The company is also exploring collaboration in ceramic production with Murata Manufacturing, indicating strong demand for solid-state batteries in automotive applications [3]. Production and Technology - The transition to the Cobra process is a significant milestone, with expectations for B1 sample shipments and ongoing improvements in production efficiency [6]. - The company is focused on enhancing battery reliability and process stability as it scales up production [6]. Financial Performance - The report notes a net loss of $114.7 million for Q2, with an adjusted EBITDA loss of $63 million, aligning with expectations [7]. - The company has $797.5 million in liquidity at the end of Q2 and has extended its cash runway guidance to 2029 [7]. Strategic Outlook - The report emphasizes the importance of the recent agreements in showcasing the economic value of the company's solid-state platform and its potential to transform the automotive industry [8]. - The company is positioned to capitalize on a global market opportunity that could reach hundreds of billions annually [8].