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  "documentTitle": "QuantumScape (QS)",
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  "presentationDate": "2021-04-15 00:00:00",
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  "notes": "The slide uses a 'villain' narrative by citing an ex-employee to undermine the company's core value proposition.",
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      "text": "Ex-employee: Far-fetched that QS would ever be competitive with rapidly falling Li-ion battery costs; Li-ion was $200/kWh 10 years ago when QS started and set a cost to get to, but will soon be $80/kWh; QS approach “orders of magnitude” more expensive.",
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      "text": "cost per kWh: $80/kWh",
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      "text": "An ex-employee indicated that Li-ion costs are a rapidly falling moving target that makes it difficult for QS to be cost competitive. He suggested that when QS started, they benchmarked themselves to a Li-ion cost that’s now obsolete – implying their entire technological premise is based on assumptions that are no longer relevant.",
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      "text": "QS may be 100x more expensive, when we asked for ex-employee's opinion of cost disadvantage. \"100. Orders of magnitude [more expensive than current Li-ion costs]. They're not doing any manufacturing yet, so they don't know what their manufacturing-based costs will be.\"",
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      "text": "Former employee indicated skepticism that QS can be price competitive. \"The challenge is, can they scale it up? Do they have all the right pieces and approach to scale it up? And more importantly, can it be manufactured cheaply enough that it'll fit where the market is right now? There's a number out there for lithium-ion batteries for electric vehicles that the price point needs to be below $100/KWh.\"",
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      "text": "The target cost to be competitive with Li-ion is “getting more and more difficult”. \"In a couple of years, the market thinks that lithium ion batteries are going to get down to $80/KWh. I think back to when QuantumScape started 10 years ago; $200/KWh was what lithium-ion batteries were going for. When they started the business, the cost they were trying to get to was a lot higher, and the longer it takes for any new technology to come into this business, the breakeven point to enter the market is going to keep getting more and more difficult. They're at small demonstration cells .It's like a credit card kind of size. There's just a lot of work to be done.\"",
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      "text": "“The challenge is, can they scale it up? Do they have all the right pieces and approach to scale it up? And more importantly, can it be manufactured cheaply enough that it’ll fit where the market is right now? There’s a number out there for lithium-ion batteries for electric vehicles that the price point needs to be below $100/KWh.” — Former employee",
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      "text": "Source: Scorpion Capital consultation calls with experts",
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      "text": "7) Doomed by cost: the “magic material” that we believe QS is using is too expensive to ever replace Li-ion",
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