QuantumScape and PowerCo SE Strengthen Partnership to Advance Solid-State Battery Technology

QuantumScape Corporation, a pioneer in next-generation 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 fast-track the development of the QSE-5 battery through a pilot line in San Jose, representing a pivotal move towards the mass production 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 the initial milestones already met, QuantumScape anticipates the commencement of payments in 2025. This financial injection supplements the previously agreed $130 million, which is pending technical progress and the fulfillment of the licensing agreement terms.

The collaboration allows PowerCo to participate more actively in the QSE-5 production and automation processes, facilitating the pilot line’s expansion. This involvement is crucial for scaling manufacturing capabilities and ensuring the successful technology transfer necessary for the QSE-5’s global market launch. Additionally, it paves the way for increased prototype cell deliveries to PowerCo.

Furthermore, the agreement grants PowerCo the license to produce an extra 5 GWh of QSE-5-based cells annually, extending beyond the Volkswagen Group’s needs to include external customers. It also includes rights to certain 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 collective belief in the QSE-5’s potential to redefine the battery industry.

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