July 12, 2024: PowerCo, the battery subsidiary of Volkswagen Group and US solid-state battery developer QuantumScape announced yesterday they had “entered into a groundbreaking agreement to industrialize QuantumScape’s next-generation solid-state lithium-metal battery technology”.
PowerCo can manufacture up to 40GWh of batteries a year using QuantumScape’s technology with an option to up this to 80GWh annually, The licence to do this is non-exclusive meaning other car manufacturers can also come to a similar arrangement.
The firms said this was enough to outfit approximately one million vehicles per year.
VW Group is QuantumScape’s largest shareholder. The agreement supersedes an earlier joint venture between the Volkswagen Group and QuantumScape to co-manufacture batteries. Volkswagen owns 17% in QuantumScape, according to its annual report, a stake that is worth $459 million.
“We 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 firms said.
The agreement builds on each of the companies’ core competencies: QuantumScape is a leading player in solid state battery technology and PowerCo’s has the resources and skills for industrialization and manufacturing facilities.
The firms said the arrangement. “will feature a combined workforce initiative to accelerate the industrialization of QuantumScape’s technology. A large, dedicated scale-up team, composed of experts from both companies, will execute on the industrialization 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 Volkswagen Group vehicle series.
“With this cooperation, we aim to bring the most sustainable and cutting-edge battery cells to our customers,” said Frank Blome, CEO of PowerCo who is stepping down from the board of QuantumScape. “We have been collaborating and testing QuantumScape prototype cells for years now and are looking forward to bringing this technology of the future into series 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,” said Thomas Schmall, VW Group board member for technology.
Siva Sivaram, CEO and president of QuantumScape said: “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.”
To lead PowerCo in this next important phase of collaboration with QuantumScape,
Frank Blome has left QuantumScape’s board of directors. Blome had been a board member since 2020 as one of the two board members designated by the VW Group. His successor will be announced in the coming months.
