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

QuantumScape Corporation, a leader in solid-state lithium-metal battery technology, has announced an expansion of its strategic collaboration with PowerCo SE, Volkswagen Group's battery subsidiary. This enhanced partnership aims to fast-track the development of the QSE-5 battery through a pilot line in San Jose, a critical move towards the mass production of solid-state batteries.

Under the revised agreement, PowerCo will contribute up to $131 million over the next two years, contingent upon the achievement of specific milestones by the joint scale-up team. Initial milestones have already been met, with payments expected to commence in 2025. This funding is in addition to the previously agreed $130 million, tied to technical progress and the execution of a licensing agreement.

The collaboration allows PowerCo to participate earlier in the QSE-5 production and automation processes, facilitating the scaling of manufacturing and technology transfer necessary for global market entry. It also permits PowerCo to produce an additional 5 GWh of QSE-5-based cells annually, extending beyond Volkswagen Group's needs to include external customers, and to license 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 transform the battery industry.