Volkswagen Group’s (VW) battery company
PowerCo and
QuantumScape have entered into a landmark agreement to industrialise QuantumScape’s next-generation solid-state lithium-metal battery technology. Upon satisfactory technical progress and certain royalty payments, QuantumScape will grant PowerCo a licence to mass produce battery cells based on its technology platform.
Under the non-exclusive licence, PowerCo can manufacture up to 40 gigawatt-hours (GWh) per year using QuantumScape’s technology with the option to expand up to 80GWh annually, enough to power approximately one million vehicles per year. The companies believe this ‘high-touch engagement’ represents the fastest way to achieve GWh-scale production of solid-state technology to meet the growing global demand for better electric vehicle (EV) batteries. The agreement supersedes an earlier joint venture between VW and QuantumScape to co-manufacture batteries.
The agreement creates a highly collaborative partnership that amplifies the companies’ core competencies – QuantumScape’s cutting-edge technology and PowerCo’s global capabilities in industrialisation and manufacturing facilities. It will feature a combined workforce initiative to accelerate the industrialisation of QuantumScape’s technology. A large, dedicated scale-up team, composed of experts from both companies, will execute on the industrialisation activities.
QuantumScape’s technology platform is based on the company’s proprietary solid-state ceramic separator, which enables the use of a pure lithium-metal anode – a transformative innovation that is designed for exceptional 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 VW Group vehicle series.
Cutting-edge battery cellsPowerCo’s CEO Frank Blome said: “With this cooperation, we aim to bring the most sustainable and cutting-edge battery cells to our customers. 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 specialised expertise, resources and global factories can help facilitate the transition to industrial-scale production.”
Thomas Schmall, VW board member for technology, said: “EVs are the future of mobility, and this agreement with QuantumScape will ensure VW’s global fleet has access to this groundbreaking battery technology for years to come. We are committed to driving the industry forward to ensure that our EVs set the benchmark for excellence and sustainability.”
Dr Siva Sivaram, CEO and president of QuantumScape, said: “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. Combining our cutting-edge technology with PowerCo’s expertise in manufacturing and industrialisation, 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 commercialisation and adoption of these game-changing batteries together.”
To lead PowerCo in this next important phase of collaboration with QuantumScape, Frank Blome stepped off QuantumScape’s board of directors. He had served on the board since 2020 as one of the two board members designated by VW, which continues to be QuantumScape’s largest shareholder. His successor on the QuantumScape board will be announced in the coming months.
Jagdeep Singh, co-founder and chairman of QuantumScape’s board of directors, said: “Frank 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 industrialisation. As we move forward, he 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.”