QuantumScape’s stock soars as company inks new deal with VW

QuantumScape says that that its technology is based on a proprietary solid-state ceramic separator, which enables the use of a pure lithium-metal anode and that a true solid-state battery would provide nearly endless EV range, work equally well at both sides of temperature extremes and charge up much faster

By Claudia Assis 

The deal is oriented around mass producing EV battery cells based on QuantumScape’s ‘solid-state’ battery technology 

QuantumScape Corp. said Thursday it has inked a deal with Volkswagen Group’s PowerCo. aimed to mass produce electric-vehicle battery cells based on QuantumScape “solid state” battery technology. 

Volkswagen Group (XE:VOW3) is a QuantumScape (QS) shareholder and one of its major investors. 

Shares of QuantumScape are up 40% in premarket trading Thursday. 

QuantumScape said that upon “satisfactory technical progress” and undisclosed royalty payments it will grant PowerCo. the license to mass produce the battery cells. 

Theirs is a non-exclusive agreement, and one that supersedes a yearslong joint venture between Volkswagen and QuantumScape to co-manufacture batteries, QuantumScape said. 

“A large, dedicated scale-up team, composed of experts from both companies, will execute on the industrialization activities,” QuantumScape said, without providing further details. 

Mass marketed solid-state batteries are something of a quest for EV makers, on the thought that a true solid-state battery would provide nearly endless EV range, work equally well at both sides of temperature extremes and charge up much faster – and do it more safely, to boot. 

QuantumScape went public in 2020 via a “blank check” company, and says that its technology is based on a proprietary solid-state ceramic separator, which enables the use of a pure lithium-metal anode. 

The two companies are targeting a product “that will be scaled up for integration in a Volkswagen Group vehicle series,” they said. 

Volkswagen last month announced a deal with EV maker Rivian Automotive Inc. (RIVN), and said it was willing to invest up to $5 billion on their EV partnership. 

Shares of QuantumScape have dropped about 22% so far this year, contrasting with gains of around 18% for the S&P 500 index SPX. 

What makes Solid state batteries better ?

The energy density of traditional lithium batteries is about 250Wh/kg, while the energy density of solid-state batteries is close to 400Wh/kg. This means that for the same battery weight, solid-state batteries can store much more energy. In addition , solid-state batteries charge faster than traditional lithium batteries. The battery can recharge in only about 10 minutes.

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