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QuantumScape shares surges 35% after partnering with Volkswagen's battery company PowerCo

Published 07/11/2024, 10:40 AM
Updated 07/11/2024, 10:41 AM
© Reuters.  QuantumScape shares surges 35% after partnering with Volkswagen\'s battery company PowerCo
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QuantumScape (QS) shares soared by as much as 35% on Thursday following the announcement of a strategic partnership with PowerCo, Volkswagen Group’s battery company.

The collaboration aims to industrialize QuantumScape’s next-generation solid-state lithium-metal battery technology.

Under the agreement, QuantumScape will grant PowerCo a license to mass-produce battery cells based on its innovative technology platform, contingent upon satisfactory technical progress and royalty payments.

PowerCo will have the capacity to manufacture up to 40 gigawatt-hours (GWh) annually, with the potential to expand to 80 GWh per year. This output could equip approximately one million vehicles annually, addressing the escalating global demand for superior electric vehicle batteries.

The partnership supersedes a previous joint venture between Volkswagen Group and QuantumScape. It combines QuantumScape’s cutting-edge technology with PowerCo’s expertise in industrialization and manufacturing, aiming to rapidly scale production to gigawatt-hour levels. A dedicated team of experts from both companies will drive the industrialization efforts.

QuantumScape’s technology features a proprietary solid-state ceramic separator, enabling the use of a pure lithium-metal anode. This innovation promises exceptional energy and power density, fast charging, and enhanced safety.

“With this cooperation, we aim to bring the most sustainable and cutting-edge battery cells to our customers,” stated Frank Blome, CEO of PowerCo. “We have been collaborating and testing QuantumScape prototype cells for years now and we are looking forward to bringing this technology of the future into series production.”

Thomas Schmall, Volkswagen Group Board Member for Technology, emphasized the significance of the partnership for the company’s electric vehicle fleet, stating, “This agreement with QuantumScape will ensure the Volkswagen Group’s global fleet has access to this groundbreaking battery technology for years to come.”

Dr. Siva Sivaram, CEO and president of QuantumScape, highlighted the strategic importance of the deal, noting that it “establishes a blueprint for a capital-light business approach and positions us at the forefront of energy storage innovation.”

This partnership marks a significant step in QuantumScape’s strategy to commercialize its solid-state battery technology, further accelerating the transition to sustainable mobility solutions.

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