Key Takeaways
- QuantumScape signed a licensing deal that will allow Volkswagen’s PowerCo to mass produce electric vehicle (EV) batteries using its technology.
- PowerCo will be allowed to produce up to 40 gigawatt-hours (GWh) annually with an option to expand up to as much as 80 GWh.
- QuantumScape shares soared nearly 30% in intraday trading Thursday.
Shares of QuantumScape Corporation (QS) jumped in intraday trading Thursday after the electric vehicle (EV) battery producer reached a licensing deal with Volkswagen Group’s battery company PowerCo.
The deal grants PowerCo a non-exclusive license to utilize QuantumScape’s technology platform in the mass production of battery cells. Volkswagen’s EV battery division will be allowed to produce up to 40 gigawatt-hours (GWh) annually with an option to expand up to as much as 80 GWh, or enough batteries to power roughly 1 million EVs per year, the release said.
Deal Seen Helping Accelerate Adoption of QuantumScape’s Battery Technology
“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,” QuantumScape Chief Executive Officer (CEO) Dr. Siva Sivaram said. “Working closely with PowerCo as our first customer will help us accelerate commercialization and adoption of these game-changing batteries together.”
Shares of QuantumScape surged nearly 30% to $7.01 as of 12:30 p.m. ET Thursday. They are essentially flat on the year.