QuantumScape Shares Rise on Volkswagen Deal to Mass Produce EV Batteries

By Don Nico Forbes

Shares in QuantumScape rose after inking a deal with Volkswagen's PowerCo to industrialize its next-generation solid-state lithium batteries, with the potential to power roughly one million electric-vehicles a year.

Shares were up 39% in premarket trading at $7.53.

Under the deal, PowerCo will be granted license to mass produce QuantumScape's battery cells, subject to certain technical progress steps and royalty payments, the companies said.

The battery company will be able to manufacture up to 40 gigawatt-hours a year using QuantumScape's technology with the option to expand up to 80 GWh annually--enough to outfit approximately one million vehicles per year.

The agreement supersedes a previous joint-venture between Volkswagen Group and QuantumScape to co-manufacture batteries.

"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 Chief Executive Frank Blome.

Write to Don Nico Forbes at don.forbes@wsj.com

(END) Dow Jones Newswires

July 11, 2024 08:03 ET (12:03 GMT)

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