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 company. This updated agreement aims to fast-track the QSE-5 battery development pilot line in San Jose, a critical move towards the industrialization of solid-state batteries. PowerCo will contribute up to $131 million over the next two years, contingent on achieving specific milestones, with the first already met and payments expected to commence in 2025. This funding is in addition to the previously announced $130 million tied to technical progress and licensing agreement execution.

The collaboration allows PowerCo to participate earlier in QSE-5 production and automation, facilitating the scaling of manufacturing and technology transfer necessary for global market entry. It also permits PowerCo to produce up to an additional 5 GWh of QSE-5-based cells annually, extending beyond Volkswagen Group's needs to external customers, and licenses certain future QuantumScape technologies. Dr. Siva Sivaram, CEO of QuantumScape, highlighted the agreement as evidence of the deepening strategic, technical, and financial synergy between the two companies, underscoring their confidence in QSE-5's potential to transform the battery industry.