Collaboration between QuantumScape and PowerCo in Solid-State Battery projects expands
Volkswagen Group's PowerCo and QuantumScape Expand Partnership for Solid-State Battery Development
In a significant move to advance the development and commercialization of solid-state batteries (SSB), PowerCo, the battery division of the Volkswagen Group, and QuantumScape have expanded their strategic partnership. The new agreement, worth up to $131 million over a two-year period, aims to accelerate the development of QuantumScape's QSE-5 battery cells in a pilot line located in San Jose, California [1][2][3].
Under the terms of the updated agreement, PowerCo will gain the right to produce an additional 5 gigawatt-hours (GWh) of QSE-5-based cells annually. This expanded production capacity includes sales outside the Volkswagen Group, increasing the existing license capacity to a total of up to 40 GWh per year, with an option to scale to 80 GWh annually [1][2]. This production volume could potentially supply batteries for approximately one million electric vehicles per year [1].
The collaboration involves joint scale-up teams from both companies working to industrialize the QSE-5 battery technology at QuantumScape’s pilot production line in San Jose. The QSE-5 battery boasts a 5 ampere-hour capacity, energy density over 844 Wh/L, and fast charging capability of 12.2 minutes from 10% to 80% state of charge, with initial sample batteries produced in October 2024 [3]. The expansion enables PowerCo's earlier involvement in automation and production ramp-up to prepare for global commercial deployment [2][3].
PowerCo will also be involved in building the necessary infrastructure for technology transfer. The funding is contingent upon achieving certain milestones in the development of QSE-5 battery cells [3]. However, no new details about the partnership duration were provided.
This strategic partnership represents a substantial financial and capacity commitment by PowerCo to facilitate mass production and commercialization of QuantumScape’s solid-state batteries over the coming years, leveraging their proprietary ceramic separator technology that enables high energy, power density, and fast charging [1][2].
[1] QuantumScape Press Release, "QuantumScape and PowerCo Expand Strategic Partnership," 2022. [2] Volkswagen Group Press Release, "Volkswagen Group and QuantumScape Expand Strategic Partnership," 2022. [3] QuantumScape Investor Presentation, "Q4 2024 Investor Update," 2024.
The expanded partnership between PowerCo and QuantumScape, worth up to $131 million, will facilitate the development of QuantumScape's QSE-5 battery cells in the energy sector, aiming at rapid industrialization. This collaboration in the technology industry includes PowerCo's right to produce an additional 5 GWh of QSE-5-based cells annually, potentially supplying batteries for one million electric vehicles, and the joint scale-up efforts to advance the QSE-5 battery technology.
