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SAN JOSE - QuantumScape Corporation (NYSE:QS), currently trading at $12.83 and showing strong momentum with a 21.59% gain last week, announced Wednesday an expansion of its strategic collaboration with PowerCo SE, the Volkswagen Group’s battery company, to accelerate development of its QSE-5 battery pilot line. According to InvestingPro analysis, the company maintains a healthy balance sheet with cash exceeding debt.
Under the expanded agreement, PowerCo will provide up to $131 million in new payments over the next two years as the joint team achieves certain milestones. QuantumScape reported that initial milestones have already been met, with payments expected to begin in 2025.
These new funds come in addition to $130 million previously announced that will be due to QuantumScape upon satisfactory technical progress and execution of a licensing agreement.
The expanded collaboration allows PowerCo earlier engagement in QSE-5 production and automation efforts, advancing the pilot line’s ramp-up. The agreement grants PowerCo rights to produce up to an additional 5 gigawatt-hours of QSE-5-based cells annually, including for customers outside the Volkswagen Group, along with rights to license certain future QuantumScape technology.
"This expanded agreement is a clear signal of the growing strategic, technical and financial alignment between the two companies," said Dr. Siva Sivaram, CEO and president of QuantumScape.
The companies initially entered their strategic collaboration and licensing arrangement in July 2024. QuantumScape focuses on developing next-generation solid-state lithium-metal battery technology.
This information is based on a press release statement from QuantumScape Corporation.
In other recent news, QuantumScape Corporation has made significant advancements and announcements. The company successfully integrated its Cobra separator process into baseline cell production, marking a notable improvement in its manufacturing capabilities. This new platform offers a 25-fold increase in heat treatment speed and requires less space compared to the previous Raptor process. Additionally, QuantumScape has decided to terminate its San Jose lease early, incurring $2.3 million in termination and brokerage fees. This decision will free the company from any further obligations to the landlord after August 1, 2025. At the same time, QuantumScape held its 2025 Annual Meeting of Stockholders, where key proposals were approved, including the election of ten directors. Notable directors elected include Brad Buss and JB Straubel, each receiving a majority vote. Furthermore, William Blair maintained its Market Perform rating on QuantumScape, despite the recent surge in the company’s stock price. The research firm described the stock surge as "overdone," citing the Cobra manufacturing line’s commissioning as a known milestone.
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