Volkswagen’s PowerCo and QuantumScape forge alliance for next-gen battery production

Volkswagen Group’s battery company PowerCo and QuantumScape have announced an agreement to mass-produce QuantumScape’s next-generation solid-state lithium-metal battery technology. This strategic collaboration marks a significant advancement in electric vehicle (EV) battery technology and industrial production.

Under the terms of the non-exclusive license agreement, PowerCo will have the capacity to manufacture up to 40 gigawatt-hours (GWh) of battery cells per year using QuantumScape’s technology, with an option to expand production up to 80 GWh. This production capacity could power approximately one million EVs annually, signifying a major leap towards meeting the global demand for more efficient and sustainable vehicle batteries.

The collaboration discontinues a previous joint venture aimed at co-manufacturing batteries, transitioning to a partnership that leverages QuantumScape’s innovative technology and PowerCo’s robust industrial and manufacturing capabilities. A dedicated scale-up team, composed of experts from both companies, will focus on the industrialization of the new battery technology.

QuantumScape’s technology utilizes a proprietary solid-state ceramic separator that enables the use of a pure lithium-metal anode, which promises exceptional energy density, fast charging capabilities, and a robust safety profile. The companies aim to integrate this technology into a Volkswagen Group vehicle series, setting a new standard for EV batteries.

Frank Blome, CEO of PowerCo, emphasized the transformative potential of this partnership, stating, “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.”

Thomas Schmall, Volkswagen Group Board Member for Technology, highlighted the strategic importance of this technology for the future of mobility, underscoring the commitment to ensuring that Volkswagen’s global fleet remains at the forefront of EV technology and sustainability.

Dr. Siva Sivaram, CEO and president of QuantumScape, described the agreement as a pivotal step in QuantumScape’s strategy to scale up its solid-state lithium-metal battery technology globally. He noted that the partnership with PowerCo would help accelerate the commercialization and adoption of this innovative technology, potentially transforming energy storage for EVs.

The announcement also coincides with Frank Blome’s decision to step down from QuantumScape’s board of directors to focus on leading PowerCo through this crucial phase of collaboration. His contributions to QuantumScape’s strategy and industrialization efforts have been significant, and his ongoing involvement with PowerCo is expected to continue driving the partnership’s success.

This alliance between PowerCo and QuantumScape not only underscores the automotive industry’s shift towards more advanced battery technologies but also sets a new benchmark for the integration of cutting-edge scientific innovations into mainstream automotive production.