QuantumScape is expanding its strategic collaboration and licensing arrangement with Volkswagen subsidiary PowerCo to increase the development of the solid-state battery pilot line for the QSE-5 battery in San Jose.
It will allow for PowerCo to produce up to an additional 5GWh of QSE-5-based cells annually, which will include for customers outside of Volkswagen group.
PowerCo is said to provide up to $131 million in new payments over the next two years when the joint scale-up team achieves certain milestones.
The first milestones have been achieved and QuantumScape expects to start to receive payments in 2025.
This is in addition to the previously announced $130 million which will be sent to QuantumScape when technical progress has been made, and the licencing agreement executed.
The agreement will allow for PowerCo to engage earlier in QSE-5 production and automation efforts to advance the solid-state pilot line, which QuantumScape said is an essential step to scaling up manufacturing.
It will also allow for higher-volume prototype cell deliveries to PowerCo, and the right for PowerCo to licence future technology from QuantumScape.
Dr Siva Sivaram, CEO and president, QuantumScape, said, “This expanded agreement is a clear signal of the growing strategic, technical and financial alignment between the two companies. It reflects our shared confidence in QSE-5 as a game-changing platform for the battery industry.”
Image: A 24-layer prototype battery cell in QuantumScape’s format. Credit: Volkswagen AG.
