QuantumScape expands PowerCo collaboration with $131 million deal

Published 23/07/2025, 21:28
QuantumScape expands PowerCo collaboration with $131 million deal

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.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.