QuantumScape and PowerCo broaden their collaboration on Solid-State Battery projects
QuantumScape, a leading solid-state battery technology company, has expanded its strategic partnership with PowerCo SE, the battery division of the Volkswagen Group. The new agreement, worth up to $131 million over a period of two years, aims to increase the production capacity of QuantumScape's QSE-5 solid-state battery cells [1][2][3].
The agreement, signed in July 2024, builds upon an earlier one that included a $130 million payment upon technical progress and licensing execution [1][2][3]. PowerCo will now have the right to produce up to 5 gigawatt-hours (GWh) of QSE-5-based cells annually, with the potential to supply customers outside the Volkswagen Group [1][2]. The overall licensing agreement allows PowerCo to manufacture up to 40 GWh per year using QuantumScape’s technology platform, with an option to double that capacity to 80 GWh annually [1].
The QSE-5 battery is QuantumScape’s first commercial solid-state lithium-metal battery product, offering a 5 ampere-hour capacity, energy density exceeding 844 Wh/l, and fast charge times of around 12.2 minutes from 10% to 80% state of charge [3]. The partnership includes forming a joint scale-up team from both companies to accelerate development and pilot production scaling at QuantumScape’s San Jose facility, including advancing automation and producing higher-volume prototype cells [1][2].
In addition to the production rights, PowerCo will also gain access to license certain future QuantumScape technologies, signalling an extended collaboration beyond just the QSE-5 cell production [2]. This agreement positions PowerCo early in the supply chain for QuantumScape solid-state cells while supporting the industrialization and commercialization timeline, reportedly targeting production scaling by 2026 [4].
This expanded partnership represents a significant step towards scaling and commercializing QuantumScape’s breakthrough solid-state battery technology with Volkswagen’s dedicated battery division, PowerCo. The funding is contingent upon the achievement of defined milestones, and the agreement does not specify any penalties or consequences for failing to meet these milestones.
References:
[1] QuantumScape Corporation. (2025). Press Release: QuantumScape and PowerCo SE Expand Strategic Partnership to Accelerate Solid-State Battery Commercialization. Retrieved from https://www.quantumscape.com/press-releases/
[2] Volkswagen Group. (2025). Press Release: Volkswagen Group and QuantumScape Expand Strategic Partnership to Accelerate Solid-State Battery Commercialization. Retrieved from https://www.volkswagenag.com/en/news/2025/02/volkswagen-group-and-quantumscape-expand-strategic-partnership-to-accelerate-solid-state-battery-commercialization.html
[3] QuantumScape Corporation. (2025). QSE-5 Solid-State Lithium-Metal Battery. Retrieved from https://www.quantumscape.com/technology/qse-5-solid-state-battery/
[4] QuantumScape Corporation. (2025). Investors. Retrieved from https://www.quantumscape.com/investors/
- The expanded strategic partnership between QuantumScape and PowerCo SE, a division of the Volkswagen Group, will not only focus on producing QSE-5 solid-state battery cells but also involves access to future QuantumScape technologies, signaling an extended collaboration in the technology industry and finance.
- Given this partnership, PowerCo has the potential to produce up to 80 GWh annually of QSE-5-based solid-state battery cells, potentially supplying customers outside the Volkswagen Group in the energy sector, capitalizing on the breakthrough technology of QuantumScape.
