San Jose, United States/Salzgitter, Germany, 11 July 2024 – In a significant advancement for the electric vehicle (EV) industry, Volkswagen Group’s battery company PowerCo and QuantumScape (NYSE: QS) have entered into a groundbreaking agreement to industrialize QuantumScape’s next-generation solid-state lithium-metal battery technology. This new partnership supersedes an earlier joint venture between the Volkswagen Group and QuantumScape, focusing on co-manufacturing batteries.
Frank Blome, CEO of PowerCo, emphasized the partnership’s ambitious goal: “We aim to bring the most sustainable and cutting-edge battery cells to our customers.” This collaboration promises to accelerate the mass production of advanced battery cells, leveraging the combined expertise of QuantumScape’s innovative technology and PowerCo’s industrial capabilities.
Scaling Up Production
Under the non-exclusive license, PowerCo is authorized to manufacture up to 40 gigawatt-hours (GWh) of battery cells per year using QuantumScape’s technology, with the potential to double this capacity to 80 GWh annually. This production capacity is sufficient to equip approximately one million vehicles per year, addressing the burgeoning global demand for superior EV batteries.
The agreement envisions a synergistic partnership that enhances the core strengths of both companies – QuantumScape’s cutting-edge technology and PowerCo’s extensive industrialization and manufacturing capabilities. A dedicated scale-up team comprising experts from both organizations will spearhead the industrialization activities, ensuring swift and efficient progress toward gigawatt-hour-scale production.
Technological Innovation
At the heart of QuantumScape’s technology platform is the company’s proprietary solid-state ceramic separator, which enables the use of a pure lithium-metal anode. This transformative innovation promises exceptional energy and power density, rapid charging capabilities, and a robust safety profile. The collaboration aims to integrate this advanced battery technology into a Volkswagen Group vehicle series, marking a significant milestone in the evolution of EVs.
Frank Blome remarked on the longstanding collaboration between the two companies: “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.” He highlighted the pivotal role of PowerCo’s specialized expertise, resources, and global facilities in transitioning to industrial-scale production.
Industry Impact
Thomas Schmall, Volkswagen Group Board Member for Technology, underscored the strategic importance of this partnership: “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.” The collaboration is poised to set new benchmarks for excellence and sustainability in the EV industry.
Dr. Siva Sivaram, CEO and president of QuantumScape, highlighted the strategic alignment between the two companies: “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.” He emphasized the partnership’s role in accelerating the commercialization and adoption of QuantumScape’s game-changing batteries.
Leadership and Vision
In a significant move to lead PowerCo in this next phase of collaboration, Frank Blome has stepped down from QuantumScape’s board of directors, a position he held since 2020. Volkswagen Group, QuantumScape’s largest shareholder, will announce his successor on the board in the coming months.
Jagdeep Singh, co-founder and chairman of QuantumScape’s board of directors, praised Blome’s contributions: “Frank Blome has been an exceptional partner for QuantumScape for many years. He has provided invaluable contributions to QuantumScape’s product portfolio strategy and key decisions about industrialization.” Singh emphasized that Blome will continue to play an active role in ensuring the strength and continuity of the collaboration.
This partnership between PowerCo and QuantumScape marks a significant step forward in the quest for sustainable, high-performance batteries, promising to reshape the future of electric vehicles and energy storage technology.
