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  "documentTitle": "QuantumScape (QS)",
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  "authorName": "Scorpion Capital",
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  "presentationDate": "2021-04-15 00:00:00",
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  "notes": "Uses pull-quotes as primary evidence to support the 'villain' critique of the target company's economic viability.",
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      "text": "so much cheaper to make huge volumes of liquid-filled lithium-ion batteries",
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      "kind": "paragraph",
      "text": "An ex-employee noted the massive cost advantage for conventional Li-ion created by the current global infrastructure and already-depreciated capital expenditure.",
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      "text": "“Right now, there are Tesla's giga-factories, and there are hundreds of gigawatt-hours of worldwide production capacity for lithium batteries, conventional liquid electrolyte batteries, and all of that manufacturing capex is already installed, and it's already partially depreciated. So, just the depreciation costs alone on the capital equipment are already being brought down to the point that it becomes so much cheaper to make huge volumes of liquid-filled lithium-ion batteries.” – Former employee",
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      "text": "“A solid-state battery in initial manufacturing is going to cost because the equipment's totally different. The way you would assemble solid materials together is different than injecting in a liquid fluid, so at least part of the manufacturing process is going to be different, and that means different facilities, different capital equipment, all new capital expenditure, and when they start producing, none of that is going to be depreciated.” – Former employee",
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      "kind": "quote",
      "text": "“Right now, there are Tesla's giga-factories, and there are hundreds of gigawatt-hours of worldwide production capacity for lithium batteries, conventional liquid electrolyte batteries, and all of that manufacturing capex is already installed, and it's already partially depreciated. So, just the depreciation costs alone on the capital equipment are already brought down to the point that it becomes so much cheaper to make huge volumes of liquid-filled lithium-ion batteries.” — Former employee",
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      "text": "Source: Scorpion Capital consultation calls with experts",
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      "text": "Former employee explains the challenge of being cost-competitive with a niche technology versus high-volume “giga-factories” devoted to conventional Li-ion batteries: “so much cheaper to make huge volumes of liquid-filled lithium-ion batteries”; other ex-employees indicate that at the end of the day, auto OEM’s just care about price.",
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      "kind": "title",
      "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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