QuantumScape and PowerCo deepen partnership in developing solid-state batteries technology
In a significant development for the battery industry, QuantumScape and Volkswagen subsidiary PowerCo have expanded their partnership, originally established in July 2024. This expanded agreement, which reflects the growing strategic, technical, and financial alignment between the two companies, promises to accelerate the development and production of QuantumScape's QSE-5 battery.
Under the terms of the updated agreement, PowerCo is granted the rights to produce up to an additional 5 GWh of QSE-5-based cells annually. This increased production capacity is expected to play a crucial role in scaling manufacturing and executing the technology transfer required to bring QSE-5 to global markets.
The agreement also enables higher-volume prototype cell deliveries to PowerCo, with the first deliveries expected later this year. The first milestones have already been achieved, and QuantumScape expects to begin receiving payments under the new agreement, totalling up to $131 million over the next two years upon achieving certain milestones. This additional payment is in addition to the previously announced $130 million due to QuantumScape.
Dr. Siva Sivaram, CEO and President of QuantumScape, highlighted the expanded agreement's importance, stating, "The expanded agreement reflects our shared confidence in QSE-5 as a game-changing platform for the battery industry."
In addition to the increased production capacity, PowerCo also gains the right to license certain future QuantumScape technology under the expanded agreement. This partnership is set to accelerate QuantumScape's QSE-5 battery development pilot line in San Jose.
The produced cells are not limited to the Volkswagen Group, with PowerCo given the opportunity to produce cells for customers outside the Group as well. In fact, PowerCo is expected to be the first customer outside the Volkswagen Group to produce cells based on PowerCo QuantumScape technology within a year.
This earlier engagement is essential for scaling manufacturing and executing the technology transfer required to bring QSE-5 to global markets. With this expanded partnership, both QuantumScape and PowerCo are poised to make a significant impact on the battery industry, driving innovation and sustainability forward.
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