QuantumScape Corporation has expanded its strategic collaboration and licensing arrangement with PowerCo SE, the Volkswagen Group’s battery manufacturing subsidiary, to expedite the development and industrialization of its QSE-5 solid-state lithium-metal battery technology. The original partnership was established in July 2024.
Under the updated agreement, PowerCo SE will provide up to $131 million in new funding over the next two years, contingent on the joint scale-up team achieving predefined technical and operational milestones. QuantumScape confirms that the initial milestones have been reached and expects to begin receiving the first tranche of payments in 2025. These new inflows are in addition to a previously announced $130 million payment tied to technical progress and final licensing execution.
The expanded collaboration enables PowerCo SE to engage earlier in QuantumScape’s pilot production line in San Jose, Calif., focusing on production-process optimization and automation. This step is critical for scaling manufacturing capacity, executing technology-transfer protocols, and producing higher-volume prototype cells for PowerCo SE. As part of the agreement, PowerCo SE secures the right to produce an additional five gigawatt-hours (GWh) of QSE-5-based cells annually under the licensing terms. This expanded capacity can serve both Volkswagen Group brands and external customers. The agreement also grants PowerCo SE the option to license certain future QuantumScape technology developments.
“This expanded agreement is a clear signal of the growing strategic, technical and financial alignment between the two companies,” said Dr. Siva Sivaram, CEO and president of QS. “It reflects our shared confidence in QSE-5 as a game-changing platform for the battery industry.”
QuantumScape’s solid-state lithium-metal battery design targets higher energy density, faster charging, and improved safety compared to conventional lithium-ion cells. The QSE-5 development pilot line in San Jose represents a key milestone in the company’s efforts to commercialize next-generation battery solutions that support the automotive sector’s transition to electric vehicles and the global shift toward lower-carbon energy systems.
Source: Business Wire
