QuantumScape and PowerCo Strengthen Ties to Accelerate Solid-State Battery Development

QuantumScape Corporation, a pioneer in solid-state lithium-metal battery technology, has announced an expansion of its strategic collaboration with PowerCo SE, the battery subsidiary of the Volkswagen Group. This enhanced partnership aims to accelerate the development of the QSE-5 battery through a pilot line in San Jose, representing a pivotal move towards the industrialization of solid-state batteries.

Under the revised agreement, PowerCo is set to contribute up to $131 million over the next two years, contingent upon the achievement of specific milestones by the joint scale-up team. With initial milestones already met, QuantumScape anticipates the commencement of payments in 2025. This financial commitment supplements the previously announced $130 million tied to technical progress and the execution of a licensing agreement.

The collaboration allows PowerCo to participate more actively in the QSE-5 production and automation processes, facilitating the scaling of manufacturing and the technology transfer necessary for global market introduction. Additionally, it enables increased prototype cell deliveries to PowerCo and grants the company the rights to produce up to an additional 5 GWh of QSE-5-based cells annually, extending beyond the Volkswagen Group's needs to include external customers. The agreement also encompasses the licensing of future QuantumScape technologies.

Dr. Siva Sivaram, CEO and president of QuantumScape, highlighted the agreement as a testament to the deepening strategic, technical, and financial synergy between the two companies, underscoring their shared belief in the QSE-5 platform's potential to revolutionize the battery industry.