PowerCo and QuantumScape Announce Landmark Agreement to Industrialize Solid-State Batteries
PowerCo and QuantumScape have entered a landmark agreement to industrialize QuantumScape’s solid-state lithium-metal battery technology for electric vehicles. The agreement allows PowerCo to manufacture up to 40 gigawatt-hours annually, with potential expansion to 80 GWh. This partnership aims to accelerate the mass production of advanced batteries, meeting the growing demand for high-performance EV batteries. QuantumScape’s technology features a proprietary solid-state ceramic separator, enabling a pure lithium-metal anode for superior energy density, fast charging, and safety. The collaboration supersedes a previous joint venture between Volkswagen Group and QuantumScape, focusing on leveraging both companies’ strengths in technology and industrialization.
- QuantumScape's technology enables superior energy density, fast charging, and high safety.
- PowerCo can manufacture up to 40 GWh annually, with the potential to expand to 80 GWh.
- The agreement represents a significant step in commercializing solid-state battery technology.
- The collaboration leverages PowerCo’s manufacturing capabilities and QuantumScape’s technology.
- The agreement supersedes an earlier joint venture, indicating a shift in strategy.
Insights
Financial Perspective: The agreement signifies a major shift in both companies' operational strategies. QuantumScape will likely see
From a valuation standpoint, the market may respond positively to this news given the potential revenue streams and reduced financial risks. However, investors should also consider the timeline for mass production and evaluate how quickly this agreement can translate into tangible financial benefits. Both firms anticipate production to meet the growing demand for electric vehicles, but scaling to 40 GWh and eventually 80 GWh could face technical and logistical challenges that might affect the timeline and cost structure.
Technological Insights: The partnership between PowerCo and QuantumScape signifies a giant leap towards the industrialization of solid-state batteries, currently seen as the future of electric vehicle (EV) power sources. These batteries promise higher energy density, faster charging times and improved safety—traits critical for the next generation of EVs. QuantumScape's proprietary solid-state ceramic separator enables the use of a pure lithium-metal anode, a key advancement that stands to revolutionize battery performance.
From a technical feasibility perspective, scaling up such cutting-edge technology involves intricate engineering challenges. The combined workforce from both companies brings together expertise in manufacturing and technology that could mitigate some of these hurdles. Investors should stay informed about any advancements or setbacks in the technical validation and scaling process, as these will directly influence the timeline for mass-market availability and, consequently, the stock price.
Market Position and Demand: The global EV market is rapidly expanding, with increasing demand for more efficient, long-lasting and safer batteries. This collaboration positions both companies to capitalize on this booming market by providing a superior battery solution. Currently, lithium-ion batteries dominate the EV market, but solid-state batteries are expected to gain significant traction as they offer substantial improvements in energy density and charging times.
From a market dynamics perspective, the agreement also places PowerCo and QuantumScape at a strategic advantage to meet the anticipated global demand for EV batteries. The move aligns well with global trends towards sustainability and reduced emissions, potentially positioning the companies to benefit from government incentives for green technologies. Investors should consider the long-term market potential and how early adoption of solid-state technology could offer a competitive edge, despite the initial challenges and high R&D costs associated with the technology.
Companies join forces to advance world-leading lithium-metal technology toward mass-manufacturing for passenger electric vehicles
SALZGITTER,
Frank Blome, CEO of PowerCo, Jagdeep Singh, Co-founder & Chairman of QuantumScape, Dr. Siva Sivaram, CEO & president of QuantumScape, and Thomas Schmall, Volkswagen Group Board Member for Technology (Photo: Business Wire)
Under the non-exclusive license, PowerCo can manufacture up to 40 gigawatt-hours (GWh) per year using QuantumScape’s technology with the option to expand up to 80 GWh annually, enough to outfit approximately one million vehicles per year. The companies believe this high-touch engagement represents the fastest way to achieve gigawatt-hour-scale production of solid-state technology to meet the growing global demand for better electric vehicle batteries. The agreement supersedes an earlier joint venture between the Volkswagen Group and QuantumScape to co-manufacture batteries.
The agreement creates a highly collaborative partnership that amplifies the companies’ core competencies – QuantumScape’s cutting-edge technology and PowerCo’s global capabilities in industrialization and manufacturing facilities. It will feature a combined workforce initiative to accelerate the industrialization of QuantumScape’s technology. A large, dedicated scale-up team, composed of experts from both companies, will execute on the industrialization activities.
QuantumScape’s technology platform is based on the company’s proprietary solid-state ceramic separator, which enables the use of a pure lithium-metal anode – a transformative innovation that is designed for exceptional energy and power density, fast charging and a robust safety profile. Together, the companies will target a product that will be scaled-up for integration in a Volkswagen Group vehicle series.
“With this cooperation, we aim to bring the most sustainable and cutting-edge battery cells to our customers,” said Frank Blome, CEO of PowerCo. “We have been collaborating and testing QuantumScape prototype cells for years now and we are looking forward to bringing this technology of the future into series production. QuantumScape’s technology is poised to enter a pivotal stage where PowerCo’s specialized expertise, resources and global factories can help facilitate the transition to industrial-scale production.”
“Electric vehicles are the future of mobility, and this agreement with QuantumScape will ensure the Volkswagen Group’s global fleet has access to this groundbreaking battery technology for years to come,” said Thomas Schmall, Volkswagen Group Board Member for Technology. “We are committed to driving the industry forward to ensure that our electric vehicles set the benchmark for excellence and sustainability.”
“This agreement is a major step in our long-term global scale-up strategy to bring QuantumScape’s solid-state lithium-metal battery technology to market,” said Dr. Siva Sivaram, CEO and president of QuantumScape. “Combining our cutting-edge technology with PowerCo’s expertise in manufacturing and industrialization, this deal establishes a blueprint for a capital-light business approach and positions us at the forefront of energy storage innovation. Working closely with PowerCo as our first customer will help us accelerate commercialization and adoption of these game-changing batteries together.”
To lead PowerCo in this next important phase of collaboration with QuantumScape, Frank Blome stepped off QuantumScape’s board of directors. Blome had served on the board since 2020 as one of the two board members designated by the Volkswagen Group, which continues to be QuantumScape’s largest shareholder. His successor on the QuantumScape board will be announced in the coming months.
“Frank Blome has been an exceptional partner for QuantumScape for many years,” said Jagdeep Singh, co-founder and board chairman of QuantumScape. “He has provided invaluable contributions to QuantumScape’s product portfolio strategy and key decisions about industrialization. As we move forward, Frank will continue to be an active partner in this relationship as an anchor manufacturer of our innovative battery technology, ensuring strength and continuity in our collaborative efforts.”
About PowerCo
PowerCo is a global battery cell manufacturer that was founded by the Volkswagen Group in 2022. Headquartered in Salzgitter, the company is responsible for the development and production of battery cells as well as the vertical integration of the value chain. PowerCo is currently building a total of three cell factories with a total volume of up to 200 gigawatt-hours per year: Salzgitter in
About QuantumScape Corporation
QuantumScape is on a mission to revolutionize energy storage to enable a sustainable future. The company’s next-generation solid-state lithium-metal battery technology is designed to enable greater energy density, faster charging and enhanced safety to support the transition away from legacy energy sources toward a lower carbon future. For more information, visit www.quantumscape.com.
Forward-Looking Statements
Certain information in this press release may be considered “forward-looking statements,” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, without limitation, statements regarding QuantumScape’s plans and objectives for future operations and growth, its ability to achieve the satisfactory technical progress under the collaboration agreement required to trigger the license and royalty prepayment, the performance of its technology and its applications, and the potential impacts of QuantumScape’s technology, among others. These forward-looking statements are based on QuantumScape management’s current expectations, assumptions, hopes, beliefs, intentions and strategies regarding future events and are based on currently available information as to the outcome and timing of future events. Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, you should not rely upon forward-looking statements as predictions of future events. The events and circumstances reflected in the forward-looking statements may not be achieved or occur and actual results could differ materially from those projected in the forward-looking statements, including due to the building out of high volume processes and otherwise to achieve scale, the achievement of the quality, consistency, reliability, safety, cost and throughput required for commercial production and sale, changes in economic and financial conditions, and other factors, including those discussed in the section titled “Risk Factors” in QuantumScape’s Annual Report and Quarterly Reports and other documents filed with the Securities and Exchange Commission from time to time. Except as otherwise required by applicable law, the company disclaims any duty to update any forward-looking statements.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240711282094/en/
Source: QuantumScape Corporation
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