The Volkswagen Group is increasing its stake in US solid-state battery start-up QuantumScape by up to $200 million as the German OEM looks to the future of electric vehicle drivetrains.
The companies formed a joint venture in 2018 to work together on solid-state batteries with Volkswagen investing $100 million at the time.
Both partners envisage setting up a pilot plant with plans set to be firmed up this year.
The goal is to drive forward the joint development of solid-state battery technology, which Volkswagen is expecting to “significantly increase” range and shorten charging times.
Thomas Schmall, chairman of the board of management of Volkswagen Group Components said the partnership was making “technological progress” with the additional investment effectively strengthening and accelerating their joint development work.
Volkswagen Group Components is aiming to secure a global supply base with a focus on long-term strategic partnerships with producers to gradually build up manufacturing capacities and development of solid-state battery technology.
Closing of the new additional investment of up to $200 million and the associated increase of Volkswagen’s stake in QuantumScape is still subject to various conditions.
Read BEST's in-depth look at the technology being touted as the holy grail of next generation batteries, but which is still years from being commercialised HERE.