VW’s PowerCo goes for solid-state batteries with QuantumScape

Volkswagen subsidiary PowerCo wants to industrialize solid-state batteries and use the technology of US specialist QuantumScape. The companies have agreed to “industrialize QuantumScape’s next-generation solid-state lithium-metal battery technology.”

The VW battery subsidiary and QuantumScape know each other well. They have had a joint venture since mid-2018, which will now be replaced by the new agreement. At the beginning of the year, PowerCo confirmed QuantumScape’s “encouraging results” with its solid-state battery cells after months of laboratory testing.

Non-exclusive license

The core of the future collaboration is a non-exclusive license, based on which PowerCo intends to enter into the large-scale production of solid-state cells. However, it depends on “satisfactory technical progress and certain royalty payments.”

If the conditions are met, PowerCo may produce up to 40 GWh per year using QuantumScape technology, with the option of doubling production capacity. However, the Volkswagen subsidiary has not specified a timeframe.

QuantumScape’s technology platform is based on a solid ceramic separator developed in-house using pure lithium metal anodes. PowerCo states this separator is vital “for exceptional energy and power density, fast charging, and a robust safety profile.” QuantumScape and PowerCo will develop a battery cell that can be used in Volkswagen Group vehicles.

“With this cooperation, we aim to bring the most sustainable and cutting-edge battery cells to our customers,” said Frank Blome, CEO of PowerCo. “We have been collaborating and testing QuantumScape prototype cells for years and look forward to bringing this future technology into series production.”

“QuantumScape’s technology is poised to enter a pivotal stage where PowerCo’s specialized expertise, resources, and global factories can help facilitate the transition to industrial-scale production,” he added.

“Electric vehicles are the future of mobility, and this agreement with QuantumScape will ensure the Volkswagen Group’s global fleet has access to this groundbreaking battery technology for years to come,” said Thomas Schmall, Volkswagen Group Board Member for Technology. “We are committed to driving the industry forward to ensure that our electric vehicles set the benchmark for excellence and sustainability.”

Scale-up strategy

“This agreement is a major step in our long-term global scale-up strategy to bring QuantumScape’s solid-state lithium-metal battery technology to market,” said Dr. Siva Sivaram, CEO and president of QuantumScape.

“Combining our cutting-edge technology with PowerCo’s expertise in manufacturing and industrialization, this deal establishes a blueprint for a capital-light business approach and positions us at the forefront of energy storage innovation. Working closely with PowerCo as our first customer will help us accelerate the commercialization and adoption of these game-changing batteries together.”

In anticipation of the next phase of the collaboration, Frank Blome has resigned from QuantumScape’s board of directors. Blome had served on the board as one of two representatives designated by the Volkswagen Group since 2020. The Volkswagen Group remains QuantumScape’s largest shareholder, and Blome’s successor will be announced in the coming months.

Advanced prototypes

QuantumScape began delivering advanced prototypes of its cells to customers. Known as ‘Alpha-2,” the prototypes have six instead of 24 layers compared to the previous ‘A0’ prototypes delivered to customers and offer a higher energy density. The company considered the cells an intermediate step between the A0 and the so-called ‘QSE-5-B0 prototypes,’ which are planned for later this year.

The QSE-5 is QuantumScape’s first commercial product. It will offer a capacity of 5 Ah and an energy density of over 800 Wh/l and can be charged from 10 to 80 percent in around 15 minutes. A B0 prototype, the first beta version, would bring the company closer to the series product.