US solid-state battery developer QuantumScape and Volkswagen’s battery subsidiary PowerCo are expanding their strategic cooperation and licensing agreement. The partners aim to accelerate development of the pilot line for the QSE-5 battery, with PowerCo planning to invest up to an additional 131 million US dollars in the partnership.
Since last summer, it has been known that Volkswagen’s battery subsidiary PowerCo intends to industrialise solid-state batteries using technology from US specialist QuantumScape. In July 2024, both partners signed an agreement targeting the future “series production of solid-state cells on a gigawatt-hour scale.”
For QuantumScape, PowerCo was the first customer aiming for mass production, committing payments of up to 130 million US dollars, which QuantumScape would receive upon achieving satisfactory technical progress and executing the licence agreement. VW, PowerCo’s parent company, has also been an investor in QuantumScape since 2012, holding a 16 per cent stake according to the latest annual report.
PowerCo and QuantumScape are now expanding their collaboration to further accelerate the commercialisation of solid-state battery technology. PowerCo plans to make additional payments of up to 131 million US dollars over the next two years, as soon as the joint scale-up team reaches specific milestones.
At the core of the agreement is the development of the QSE-5 battery cell, set to become QuantumScape’s first commercial product – featuring a capacity of 5 Ah, an energy density of over 844 Wh/l, and a charging time of 12.2 minutes from 10% to 80% state of charge (SoC). QuantumScape produced the first B-samples of the QSE-5 in October 2024.
PowerCo to be involved earlier in production scaling
The newly signed agreement enables PowerCo to engage earlier in the production and automation of the QSE-5, thus advancing the ramp-up of QuantumScape’s pilot line at its headquarters in San José, California. This marks a crucial step towards scaling manufacturing and implementing the technology transfer needed to launch the QSE-5 on global markets, while also allowing QuantumScape to supply PowerCo with prototype cells in greater quantities, according to a press release.
“This expanded agreement is a clear signal of the growing strategic, technical and financial alignment between the two companies,” said Dr. Siva Sivaram, CEO and president of QS. “It reflects our shared confidence in QSE-5 as a game-changing platform for the battery industry.”
The new deal grants PowerCo, under a non-exclusive licence agreement, the right to produce up to an additional 5 gigawatt-hours (GWh) per year of QSE-5-based cells, including for customers outside the Volkswagen Group, as well as the right to license certain future QS technologies. Last year, both companies agreed that PowerCo could produce up to 40 GWh per year using QuantumScape technology, with an option to double capacity. However, none of PowerCo’s three planned battery cell factories – in Salzgitter, Valencia (Spain), and Ontario (Canada) – is currently operational.
Development agreement with another carmaker
In its quarterly report released this week, QuantumScape also stated it had “entered into a joint development agreement with another major global automotive OEM.” The unnamed customer had already received cell samples from QuantumScape in the past. The new agreement aims to progress towards a commercialisation and licensing deal.
Founded in 2010, QuantumScape is regarded as one of the pioneers in solid-state batteries. Its lithium-metal solid-state technology promises higher energy density, faster charging times, improved safety, and potential for lower-cost mass production compared to conventional lithium-ion batteries.
quantumscape.com, quantumscape.com (quarterly report; PDF)
