Expanded Cooperation between QuantumScape and PowerCo for Faster Rollout of Commercial Solid-State Battery Technology
QuantumScape Corporation, a global leader in next-generation solid-state lithium-metal battery technology, has expanded its strategic collaboration with PowerCo SE, the battery subsidiary of the Volkswagen Group. This updated collaboration aims to accelerate the commercialization of QuantumScape's solid-state battery technology, specifically focusing on the QSE-5 battery cell.
PowerCo will invest up to $131 million over the next two years, contingent on defined milestones being met, to support the development and scaling of pilot production capacity in San Jose, California. This investment will facilitate the early involvement of PowerCo in production and automation, speeding up the infrastructure and technology transfer necessary for commercial manufacturing.
The licensing agreement allows PowerCo to produce up to an additional 5 gigawatt-hours (GWh) per year in QSE-5 battery cells, with licensing rights extending to customers beyond the Volkswagen Group. The QSE-5 cell, QuantumScape’s first commercial product, boasts promising specs such as a 5 Ah capacity, energy density over 844 Wh/l, and fast charging from 10% to 80% state of charge in about 12 minutes.
QuantumScape is developing the "Cobra process," which improves ceramic separator production efficiency by 200 times, enabling higher manufacturing volumes and cost benefits. This, combined with PowerCo’s investment, could boost annual production potential toward 85 GWh in the longer term.
The partnership underscores strong confidence in solid-state batteries as transformative for global energy storage, potentially enabling electric vehicles with higher range, faster charging, and improved safety compared to conventional lithium-ion batteries. The successful commercialization of QSE-5 cells could accelerate mass adoption and reshape the battery market by overcoming current EV battery limitations.
The first milestones have been achieved, and QuantumScape Corporation expects to begin receiving payments from PowerCo in 2025, as the first milestones have been met. This expanded collaboration represents a major step toward industrial-scale production and market entry of solid-state batteries by the mid-2020s, combining robust funding, co-development of next-gen technology, and advanced manufacturing innovations to hasten commercialization, with potential to significantly affect battery technology and electric vehicle markets worldwide.
- PowerCo's investment of up to $131 million in QuantumScape Corporation's solid-state battery technology will lay the foundation for the renewable-energy industry's future, as it propels the development and scaling of the QSE-5 battery cells.
- The collaboration between QuantumScape Corporation and PowerCo SE, with investments in finance and technology, is expected to reform the energy industry by commercializing the QSE-5 cell, which promises higher range, faster charging, and improved safety over conventional lithium-ion batteries, aiding in the mass adoption of electric vehicles.
