Volkswagen Group’s battery company PowerCo and QuantumScape have partnered to industrialize QuantumScape’s next-generation solid-state lithium-metal battery technology. Upon satisfactory technical progress and certain royalty payments, QuantumScape will grant PowerCo the license to mass produce battery cells based on QuantumScape’s technology platform.
Under the non-exclusive license, PowerCo can manufacture up to 40GWh per year using QuantumScape’s technology with the option to expand up to 80GWh, enough to outfit approximately one million vehicles per year. The companies believe this high-touch engagement represents the fastest way to achieve gigawatt-hour-scale production of solid-state technology to meet the growing global demand for better electric vehicle batteries. The agreement supersedes an earlier joint venture between the Volkswagen Group and QuantumScape to co-manufacture batteries.
The agreement combine the workforce initiative to accelerate the industrialization of QuantumScape’s technology. A large, dedicated scale-up team, comprising experts from both companies, will execute on the industrialization activities.
QuantumScape’s technology platform is based on the company’s solid-state ceramic separator, which enables the use of a pure lithium-metal anode designed for quality 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.
“We want to redefine the future of battery technology, bringing 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 specialized 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,” added 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 Dr Siva Sivaram, CEO and president of QuantumScape. “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. Working closely with PowerCo as our first customer will help us accelerate commercialization and adoption of these game-changing batteries together.”
“Frank Blome has been an exceptional partner for QuantumScape for many years,” said Jagdeep Singh, co-founder and chairman of QuantumScape’s board of directors. “He has provided invaluable contributions to QuantumScape’s product portfolio strategy and key decisions about industrialization. As we move forward, Frank will continue to be an active partner in this relationship as an anchor manufacturer of our innovative battery technology, ensuring strength and continuity in our collaborative efforts.”
In related news, the European Commission recently announced that six electric vehicle (EV) battery cell manufacturing projects will receive a total of €852m (US$997m) in grants from the Innovation Fund, using revenues from the EU Emissions Trading System (EU ETS). Read the full story here