Battery developer QuantumScape Corporation is set to start production of its solid-state lithium-metal batteries following a billion dollar merger with Kensington Capital Acquisition Corp.
The firm, based in California, US, is expected to receive more than $1 billion in cash and funding commitments, led by Volkswagen and Qatar’s sovereign wealth fund, as part of the transaction.
The batteries will be made via its manufacturing joint venture with the Volkswagen Group, which was created in 2018 to prepare for the mass production of solid-state batteries for Volkswagen. The two companies have worked together since 2012 on battery cell development and the testing of prototype cells.
Upon closing of the transaction, the combined company, named QuantumScape, will be worth a suggested $3.3billion and is expected to remain listed on the NYSE and trade under the new ticker symbol ‘QS’.
QuantumScape has been exclusively focused on developing solid-state batteries and designing a scalable manufacturing process to commercialise its battery technology for the automotive industry since its inception in 2010.
The company says its anode-less battery can charge in less than 15 minutes by eliminating lithium diffusion bottlenecks in anode host materials.
Jagdeep Singh (pictured), founder and chief executive officer of QuantumScape, said the deal marked an important milestone in developing the next generation solid-state batteries for the electric vehicles market.
German OEM Volkswagen has previously invested more than $300 million, and has representation on QuantumScape’s board of directors.
Former Tesla chief technology officer and QuantumScape board member, JB Straubel, said the firm’s solid-state anode-less design represented the most elegant architecture he’d seen for a lithium-based battery system, and the company has an opportunity to redefine the battery landscape.
The boards of directors of both Kensington and QuantumScape have approved the proposed transaction, which is expected to be completed in the fourth quarter of this year.