Automaker VW deepens collaboration with solid-state battery innovator QuantumScape for battery technology advancement
QuantumScape, a leading company in the solid-state lithium-metal battery space, is making significant strides towards the commercialization of its groundbreaking technology. The company has multiple active partnerships with global automakers, including an expanded strategic cooperation with Volkswagen's battery subsidiary PowerCo and an additional unnamed major automaker.
Deepening Ties with PowerCo
QuantumScape and PowerCo have strengthened their strategic collaboration and licensing agreement to accelerate the development and industrialization of solid-state batteries, specifically the QSE-5 battery cell. PowerCo plans to invest up to an additional $131 million over the next two years, contingent on milestones met by the joint scale-up team. This investment follows an earlier commitment of around $130 million from PowerCo.
The QSE-5 is designed to be QuantumScape’s first commercial product, offering a 5 Ah capacity, energy density over 844 Wh/l, and fast charging (12.2 minutes from 10% to 80% state of charge). Initial B-samples of the QSE-5 were produced in October 2024.
A New Transformative Partnership
QuantumScape has announced another transformative partnership with a top global automaker, although the identity of the partner remains undisclosed. This multi-year, multi-phase agreement includes joint development, pilot production, and full-scale manufacturing support. The new partner will conduct extensive testing in prototype vehicles as early as 2025, aiming for mass production by 2026.
Industry speculation suggests that this partner is among the leading electric vehicle manufacturers aligned with QuantumScape’s target segments.
Production Progress
QuantumScape is actively building a pilot production line alongside these partnerships, targeting mid-decade mass production. PowerCo’s involvement is central to scaling production capabilities.
Financial and Operational Outlook
The partnerships, especially the extension with PowerCo involving $131 million in future payments, are giving QuantumScape a solid financial runway into at least 2029, supporting R&D and scaling efforts even amid the competitive and cash-intensive EV battery sector.
Siva Sivaram, CEO and President of QuantumScape, stated that the expanded agreement is a clear signal of the growing strategic, technical, and financial alignment between the two companies.
The new agreement aims to work towards a commercialization and licensing agreement with the unnamed automaker, potentially marking a significant step towards the industrialization of solid-state technology. The non-exclusive licensing option includes certain future technologies from QuantumScape. PowerCo has the right to enter production and automation of QSE-5 cells earlier. Some milestones have already been met, with payments to QuantumScape starting in 2025.
Volkswagen has been an investor in QuantumScape since 2012, holding a 16% stake in the company as per the latest financial report.
QuantumScape has signed a joint development agreement with another major global automaker, the details of which are not disclosed. The partnership involves scaling up a pilot production line in San Jose.
Under the new agreement, PowerCo will pay up to $131 million (€112 million) over the next two years, contingent upon the achievement of certain milestones. The goal of the partnership is to revolutionize energy storage to enable a sustainable future with battery technologies that offer higher energy density, faster charging, and improved safety. The initial agreement between QuantumScape and PowerCo was established in July 2024. PowerCo will have the right to produce up to 5 gigawatt-hours of QSE-5-based battery cells annually, for customers outside the Volkswagen Group.
According to QuantumScape's latest quarterly report, the company is actively pursuing partnerships with multiple major global automakers. The expanded strategic partnership with PowerCo is a testament to QuantumScape’s commitment to its mission of delivering a sustainable energy solution for the future.
- Technology advancements in the solid-state lithium-metal battery space continue to be emphasized through QuantumScape's collaboration with PowerCo, as they strengthen their agreement to accelerate the development and industrialization of the QSE-5 battery cell, featuring technology that offers a 5 Ah capacity, energy density over 844 Wh/l, and fast charging.
- As QuantumScape moves forward in building a pilot production line and solidifying partnerships with global automakers, including an undisclosed major player, their technology holds the potential to revolutionize energy storage, contributing significantly to a sustainable future with battery technologies that offer higher energy density, faster charging, and improved safety.
