A ground-breaking deal has been reached by QuantumScape and PowerCo, the battery division of the Volkswagen Group, to industrialize QuantumScape’s next-generation solid-state lithium-metal battery technology. QuantumScape will offer PowerCo the right to mass produce battery cells using QuantumScape’s technological platform, subject to specific royalty payments and adequate technical advancement.
The non-exclusive license allows PowerCo to use QuantumScape’s technology to manufacture up to 40 gigawatt-hours (GWh) annually, with the possibility to extend to 80 GWh annually. This amount of GWh is sufficient to outfit about one million vehicles yearly. According to the corporations, this high-touch engagement is the quickest route to producing solid-state technology at gigawatt-hour scale, which will help them fulfill the increasing demand for improved electric vehicle batteries around the world. An prior joint venture to co-manufacture batteries between the Volkswagen Group and QuantumScape has been replaced by this deal.
The agreement creates a highly collaborative partnership that amplifies the companies’ core competencies – QuantumScape’s cutting-edge technology and PowerCo’s global capabilities in industrialisation and manufacturing facilities. It will feature a combined workforce initiative to accelerate the industrialisation of QuantumScape’s technology. A large, dedicated scale-up team, composed of experts from both companies, will execute on the industrialisation activities.
QuantumScape’s technology platform is based on the company’s proprietary solid-state ceramic separator, which enables the use of a pure lithium-metal anode – a transformative innovation that is designed for exceptional energy and power density, fast charging and a robust safety profile.
Together, the companies will target a product that will be scaled-up for integration in a Volkswagen Group vehicle series.
“With this cooperation, we aim to bring the most sustainable and cutting-edge battery cells to our customers,” said Frank Blome, CEO of PowerCo. “We have been collaborating and testing QuantumScape prototype cells for years now and we are looking forward to bringing this technology of the future into series production. QuantumScape’s technology is poised to enter a pivotal stage where PowerCo’s specialised expertise, resources and global factories can help facilitate the transition to industrial-scale production.”
“Electric vehicles are the future of mobility, and this agreement with QuantumScape will ensure the Volkswagen Group’s global fleet has access to this groundbreaking battery technology for years to come,” said Thomas Schmall, Volkswagen Group Board Member for Technology. “We are committed to driving the industry forward to ensure that our electric vehicles set the benchmark for excellence and sustainability.”
“This agreement is a major step in our long-term global scale-up strategy to bring QuantumScape’s solid-state lithium-metal battery technology to market,” said Siva Sivaram, CEO and president of QuantumScape. “Combining our cutting-edge technology with PowerCo’s expertise in manufacturing and industrialisation, this deal establishes a blueprint for a capital- light business approach and positions us at the forefront of energy storage innovation. Working closely with PowerCo as our first customer will help us accelerate commercialisation and adoption of these game-changing batteries together.”