Welcome to the annual meeting for QuantumScape Corporation. Our host for today's call is Jagdeep Singh, the Chairman, President, and CEO of QuantumScape Corporation. At this time, all participants will be in a listen-only mode. I will now turn the call over to your host, Mr. Singh. You may begin, sir.
Good morning, and welcome to the 2021 annual general meeting of the stockholders of QuantumScape Corporation. I'm Jagdeep Singh, CEO, President, and Chairman of the Board of QuantumScape. We're excited to be hosting our first-ever annual stockholders' meeting as a public company. We are conducting this meeting virtually to support the health and well-being of our stockholders in the ongoing COVID-19 pandemic and to also afford the same opportunities to participate as would be available at an in-person meeting. We have stockholders attending via the web portal. The agenda for the meeting is posted on the web portal. It is now 9:01 A.M. Pacific Standard Time on December 15th, 2021, and this meeting is officially called to order. I would now like to introduce the other members of the Board present today: Fritz Prinz, John Doerr, Dipender Saluja, Jürgen Leohold, Frank Wurtenberger, Jens Wiese, Brad Buss, J.B.
Straubel, and Justin Morrow. Now it's my pleasure to introduce QuantumScape's Chief Legal Officer and Corporate Secretary, Michael McCarthy, who will act as Secretary of the meeting. I will turn to him to take us through the procedural matters of the meeting. Mike?
Thanks, Jagdeep. We're also joined today by representatives of our independent auditors, Ernst & Young LLP. The company has appointed Broadridge Financial Services to act as inspector of elections. Barry Shapiro from Broadridge is with us today and has taken the oath of inspection of elections earlier today. The annual meeting is being held in accordance with the company's bylaws, Delaware law, and the rules of conduct for the meeting. During the formal portion of the meeting, we will address the matters described in the company's proxy statement dated November 8th, 2021. The voting will be completed, an announcement will be made regarding the preliminary results, and then the formal portion of the meeting will be concluded. After the formal meeting has been adjourned, we have allotted some time for general questions and answer sessions regarding our business operations.
Only validated stockholders may ask questions in the designated field on the web portal. Out of consideration for others, please limit yourself to one question. In light of the number of business items on today's agenda and the need to conclude the meeting within a reasonable period of time, we cannot ensure that every stockholder who wishes to have a question or comment addressed during the meeting will be able to do so. Please note that this meeting is being recorded and no one in attendance is permitted to use audio recording devices. The board fixed November 1st, 2021, as a record date for determining stockholders entitled to vote at this meeting. An affidavit has been delivered attesting to the fact that all proxy materials were mailed commencing November 9th, 2021, to all stockholders as of the record date and will be incorporated into the minutes of this meeting.
A complete list of the stockholders entitled to vote at this meeting will be available online for the duration of the meeting and can be found in the footer section of the virtual meeting web page. Based on the number of shares present in person or by proxy, as reported by the inspector of elections, we have a sufficient number of shares to constitute a quorum. Therefore, the meeting is duly constituted and we will proceed with the business. Now I will present the matters to be voted upon. Please note that we will give stockholders an opportunity to ask questions on the proposals after all proposals have been presented. Our general session and answer session, our general question- and- answer session regarding our business operations will take place after the formal portion of the meeting is completed.
Proposal one is the election of our 10 directors to hold office until the 2022 annual general meeting of stockholders or until their successors are duly elected and qualified. Proposal two is to ratify the appointment of Ernst & Young LLP as our independent registered public accounting firm for the fiscal year ended December 31st, 2021. Proposal three is the approval of the Extraordinary Performance Award Program as further described in our proxy statement. The polls are now open for voting on our virtual shareholder meeting web portal. Also, if any stockholders would like to ask a question regarding any of the proposals, please submit your questions through the web portal. Let me now introduce John Saager, our Head of Investor Relations at QuantumScape, to take us through some of these questions.
Thank you, Mike. Hello, my name is John Saager, Head of Investor Relations at QuantumScape. Before we begin, please note that our responses to your questions may include forward-looking statements. Actual results could differ materially from those contemplated by such forward-looking statements, and reported results should not be considered as an indication of future performance. Please take a look at our filings with the Securities and Exchange Commission for a discussion of the factors that could cause our results to differ. Also, please note that any forward-looking statements are based on information available to us as of today's date, and we disclaim any obligation to update any forward-looking statements except as required by law. Our first question is for Jagdeep. Jagdeep, what is the board's plan as it relates to diversity of the board?
John, a growing body of research suggests that diversity in an organization improves average returns. Obviously, this is a key priority for us. We're focused on attracting candidates with broad experience and different perspectives, and the good news is there are a lot of potential candidates that can not only make outstanding contributions to our organization but also bring things to the table that a more homogeneous team would be lacking. We've already seen one example of this approach paying off for us. Earlier this year, Celina Mikolajczak from Panasonic Energy North America joined our board. We believe she's one of the most experienced battery manufacturing professionals in North America, regardless of demographic, and her expertise was something we were really eager to take advantage of.
After she had a chance to get to know the team and know more about our technology, we were lucky enough to get her to join in an operating role, and she now serves as our Chief Manufacturing Officer. On the board and across the whole organization, we're focused on attracting more great people that bring diverse attributes in terms of their demographics but also in terms of their business backgrounds. Not because we're just trying to check a box, but because we believe that these candidates make us more effective and ultimately will improve our business and drive shareholder returns. Our general approach to the board is similar. We want a diverse board because we're looking for differing points of view and opinion, different perspectives on the world.
Board diversity is something that we all strongly believe in, but of course, what we're looking for more than anything else is outstanding candidates. Since we've been public, more people have learned about us, and what we're focused on in terms of the potential effects our technology may someday have on reducing emissions and enabling a more sustainable future. In August, we engaged a global executive search firm to identify candidates who would further enhance the diversity of our board of directors. As a result of that, we now feel like we have a number of amazing candidates, and we believe we might have some more news on this front soon.
Thanks, Jagdeep. Our next question is about the EPA Program. Specifically, what is the purpose of the program? For this question, I'd like to invite Brad Buss, who is an independent member of our Board, the Chair of our Audit Committee, and also a member of our Compensation Committee, to respond.
Thanks, John. I think, as most people know, QuantumScape was founded with the mission to revolutionize energy storage to accelerate our transition towards more sustainable energy and to become one of the world's premier battery suppliers. The independent directors of the QuantumScape board believe that achieving this mission requires that the company's leadership and key contributors remain extremely dedicated to the company. Accordingly, the compensation committee designed the Extraordinary Performance Award Program that provides option grants to our CEO and other members of management that are only earned over five tranches if the company meets extremely ambitious stock price targets, starting at $60 a share and building up to $300 a share, as well as achieving business milestones that range from the delivery of our A&B samples to four consecutive quarters of at least 25% adjusted EBITDA margins to achieving 20% worldwide market share of automotive battery cells, excluding China.
Each of these five tranches is earned only if the company achieves both the next stock price target and one of the business milestones within 10 years of the initial grants. The program was specifically designed by the committee to ensure that actual business accomplishments are driving sustained stock price performance rather than market conditions or short-term stock exuberance. In over 15 meetings over a five-month period in 2021, the compensation committee thoughtfully deliberated the best way to get company leadership to think very big and achieve a large-scale deployment of our battery technology as rapidly as possible. In designing the program, the members of our compensation committee, which consists solely of independent directors, deliberated amongst itself, consulted its independent compensation advisors and outside counsel, and then we also interviewed management as needed.
Before making our final recommendations to the independent members of the full board, we wanted to incentivize management to deploy our technology quickly and to better align them with our shareholders. The committee formulated this performance-based program to provide exceptional rewards to participants only if the company achieves its ambitious long-term financial and operational objectives. John?
Thank you, Brad. This is Mike. I'll take John's place. Thank you, Brad. It is now 9:12 A.M. Pacific Time, December 15th, 2021, and the polls are still open. Any stockholder who hasn't yet voted or wishes to change their vote may do so by clicking on the voting button on the web portal and following the instructions there. Stockholders who have sent in proxies or voted via telephone or internet and do not want to change their vote do not need to take any further action. At this time, we ask that stockholders who have not yet voted to please finalize your vote and enter your vote in the web portal. We will give one more minute for stockholders to complete the voting process. We'll give everyone just another half minute or so, then continue.
Okay. Now that everyone has had the opportunity to vote, I now declare the polls for the 2021 annual shareholder meeting closed. Mike?
Thank you, Jagdeep. We have been informed by the inspector of elections that the preliminary vote reports show that all nominees for election to the board of directors have been duly elected, the appointment of Ernst & Young LLP as our independent registered public accounting firm has been ratified, and the Extraordinary Performance Award Program has been approved. These are the preliminary results of voting, and the final voting results will be set forth in a report of the inspector of elections and will be included in the minutes of this meeting. We will also be reporting the final vote results in a Form 8-K to be filed with the U.S. Securities and Exchange Commission within four business days of today's date. There being no further formal business to come before the meeting, the formal business portion of the meeting is now concluded.
We will now have a brief CEO message from Jagdeep Singh and then open things up for general stockholder questions and comments. Before we begin, we would like to again remind everyone that our responses to your questions may include forward-looking statements. Actual results could differ materially from those contemplated by such forward-looking statements, and reported results should not be considered as an indication of future performance. Please take a look at our filings with the Securities and Exchange Commission for a discussion of the factors that could cause our results to differ. Also, please note that any forward-looking statements are based on information available to us as of today's date, and we disclaim any obligation to update any forward-looking statement except as required by law. Having said all that, Jagdeep, you may proceed.
Thanks, Mike. The goals set out by our board reflect our long-term vision for the company. We're at a unique inflection point in the history of the automotive industry. It's become increasingly clear that electrification is the future of passenger vehicles, but it's also clear to us that current battery technology is not sufficient to allow EVs to replace combustion engines outright. There's enormous demand from both automakers and drivers for a better battery. At this opportune moment, we are working to deliver a technology that represents a potential step-change improvement over the state of the art. Although this is a major technical challenge, we have some of the most important pieces of success in place. We have a demonstrated technology designed to deliver high energy density, which translates to long range, and high power density, meaning fast charge times.
We have strong customer relationships already in place and interest in our solution that represents a truly planet-scale market. We have strong resources and support from our investors and partners and a world-class team that has already made extraordinary progress. There's a long journey ahead for all of us, employees, executives, and shareholders alike, but the wind is at our back. With that said, let's take a few questions that we have received. Let me now turn it back to John Saager, our Head of Investor Relations at QuantumScape, to take us through the questions. John?
Thanks, Jagdeep. We've received a lot of great questions on our business operations, but as today is primarily focused on the proxy initiatives, we'll only have time for a few. Our first question is, what is the projected timeline for a deliverable product?
John, our focus for 2022 is on developing the customer prototype cell, which means moving from our most recent 10-layer results to achieving similar results in a cell that has dozens of layers, as well as continuing to build out our QS-0 pre-pilot line. In 2023, we expect to be building cells out of QS-0. QS-0 is targeted to be capable of producing more than 200,000 cells, which is the equivalent of hundreds of test vehicles, depending on the size of the battery pack in each test vehicle. After that, by mid-decade, we expect to begin production out of our QS-1 facility, which is our joint venture with Volkswagen Group, which will produce 1 GWh worth of batteries to start and is targeted to scale up to an additional 20 GWh.
Okay. Great. Our second question is about whether or not there are any concerns over raw materials availability in the supply chain for mass production.
John, a battery has two electrodes, an anode and a cathode. On the anode side, our unique anode-less design eliminates the need for anode materials, which, of course, will eliminate any concerns on something like graphite, which, when made synthetically, is derived from fossil fuels, a very energy-intensive and consequently dirty process. We eliminate that ESG risk. On the cathode side, our approach is cathode-agnostic. We can leverage nickel or iron-based cathodes. We see this as a huge advantage because supporting both NMC and LFP-based cathodes should allow easing of the supply constraints that one would have if there were only one cathode solution. The other key component of our batteries is the solid-state separator itself. The materials utilized by our proprietary separator are earth-abundant and have a well-developed supply chain that's already in use today.
Even at a 20 GWh size scale, we expect to be a fraction of the overall market for those materials.
Great. Thanks, Jagdeep. Our final question, what is your thinking around non-automotive markets and when you might enter them?
Our main focus is on the automotive market because, in our view, that represents by far the largest projected total addressable market, which we believe will be hundreds of billions of dollars long term. Because of the expected economic advantages of our anode-less design, we're also seeing interest from the stationary storage market, and over time, we could pursue opportunities in this sector. We recently published data on our commercial area cells showing good cycle life under zero external reapplied pressure, which we believe addresses a problem that for a long time was considered by the scientific community to be potentially insurmountable. This result opens a door to use our technology in consumer electronics where applying external pressure is not an option due to space constraints. This could be a space we see ourselves engaged with in the future as well.
Long term, there are also some features of our technology, including high energy density, that make it attractive for electric aviation as well. We want to make sure we keep our eye on the ball for our primary target market, including prospective customers such as Volkswagen Group and the second major global automotive OEM we announced earlier this year, as well as other large automotive customers we hope to add over the coming years.
Okay. Great. That's the final question for the Q&A session. Jagdeep, do you want to close the meeting out?
Yes. There being no further business to come before the meeting, this meeting is now concluded. Thank you for joining us today and for your continued support of QuantumScape.
This now concludes the meeting. Thank you for joining and have a pleasant day.