QuantumScape (QS) revealed signing on a new automaker partner, its second after Volkswagen (VWAGY), while gearing to start producing next-gen battery cells for an anticipated flood of electric vehicles. QuantumScape stock soared.
California-based EV battery startup QuantumScape and a second top 10 global automaker agreed to partner, after the original equipment manufacturer (OEM) evaluated early battery cells, according to a regulatory filing.
The unnamed OEM will assess more advanced prototypes of QuantumScape’s solid-state battery cells. And it will buy 10 megawatt-hours of capacity from QS’s pre-pilot plant to use in “pre-series” vehicles.
QuantumScape expects to deliver the advanced prototypes before the pre-pilot facility, known as QS-0, starts production in 2023.
Recently, QuantumScape doubled QS-0 capacity to 200,000 cells annually, “enough for hundreds of test vehicles each year.” The promising but money-losing EV battery startup is working on solid-state, lithium-metal batteries for electric vehicles, a next-gen technology.
In 2018, Volkswagen invested $100 million in QuantumScape.
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Shares of QuantumScape soared 13% to 23.53 in Tuesday’s stock market trading. QuantumScape stock retook its 50-day line for the first time since July 1.
On Tuesday, Volkswagen rose 2% and Romeo Power (RMO) climbed 1.8%. Decarbonization Plus Acquisition Corp III (DCRC), which is taking Solid Power public, was up 0.55%. Shares of the combined company are set to debut in Q4 and will trade under the symbol SLDP.
QuantumScape is developing solid-state lithium-metal batteries for electric vehicles. Compared to current lithium-ion batteries, this next-gen technology offers higher energy density, faster charging, lower costs and longer battery life, according to the company.
In May, QuantumScape reported successfully making full-sized four-layer cells. It said it was on track to meet its 8-10 layer cell milestone by year-end.
But concerns about the timeline to commercialization continue to dog QuantumScape stock. Meanwhile, Ford (F) and BMW (BMWYY) have invested in rival Solid Power.
As EV makers look to secure batteries for the looming flood of electric cars, QuantumScape “has achieved promising results with its patented ceramic separator,” Morgan Stanley analysts say.
Find Aparna Narayanan on Twitter at @IBD_Aparna.
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