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Key Takeaways
- QuantumScape signed a licensing deal that will allow Volkswagen’s PowerCo to mass produce electric vehicle (EV) batteries using its technology.
- PowerCo will be allowed to produce up to 40 gigawatt-hours (GWh) annually with an option to expand up to as much as 80 GWh.
- QuantumScape shares soared nearly 30% in intraday trading Thursday.
Shares of QuantumScape Corporation ( QS ) jumped in intraday trading Thursday after the electric vehicle (EV) battery producer reached a licensing deal with Volkswagen Group’s battery company PowerCo.
The deal grants PowerCo a non-exclusive license to utilize QuantumScape’s technology platform in the mass production of battery cells. Volkswagen’s EV battery division will be allowed to produce up to 40 gigawatt-hours (GWh) annually with an option to expand up to as much as 80 GWh, or enough batteries to power roughly 1 million EVs per year, the release said.
Deal Seen Helping Accelerate Adoption of QuantumScape’s Battery Technology
“Combining our cutting-edge technology with PowerCo’s expertise in manufacturing and industrialization, this deal establishes a blueprint for a capital-light business approach and positions us at the forefront of energy storage innovation,” QuantumScape Chief Executive Officer (CEO ) Dr. Siva Sivaram said. “Working closely with PowerCo as our first customer will help us accelerate commercialization and adoption of these game-changing batteries together.”
Shares of QuantumScape surged nearly 30% to $7.01 as of 12:30 p.m. ET Thursday. They are essentially flat on the year.