Volkswagen, QuantumScape strike deal on solid-state batteries
Adds QuantumScape share move in paragraph 4
BERLIN, July 11 (Reuters) -Volkswagen VOWG_p.DE has securedproduction of solid-state batteries developed with U.S. startup QuantumScape QS.N, both companies said on Thursday, as the German carmaker aims to bring the technology into more vehicles.
Under an agreement announced on Thursday, Volkswagen's battery unit PowerCo will receive the licence to mass-produce battery cells based on QuantumScape technology, pending technological progress and certain royalty payments, they said.
The deal replaces an earlier joint venture between the two companies, Volkswagen said. Volkswagen owns 17% in QuantumScape, according to its annual report, a stake that is currently worth $459 million.
Shares in QuantumScape soared 40% in pre-market trade on the news.
Under the agreement, Volkswagen's battery unit PowerCo can manufacture up to 40 gigawatt-hours (GWh) per year using the QuantumScape technology, with an option to expand to 80 GWh, which is enough to equip approximately 1 million vehicles annually, they said.
Solid-state batteries can hold more energy than current liquid electrolyte batteries. Automakers and analysts expect them to speed transition to EVs by addressing their often limited range, which remains a major consumer concern.
"QuantumScape's technology is poised to enter a pivotal stage where PowerCo's specialized expertise, resources and global factories can help facilitate the transition to industrial-scale production," said PowerCo CEO Frank Blome.
The companies will target a product that will be scaled-up for integration into a Volkswagen Group vehicle series.
The agreement supersedes a joint venture between the two companies to co-manufacture batteries that was founded in 2018.
Reporting by Christina Amann; Additional reporting by Ben Klayman; Writing by Miranda Murray; Editing by Christoph Steitz and Madeline Chambers
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.