The stock of QuantumScape (QS) closed 30% higher on June 25 after the battery developer announced a breakthrough in the manufacturing of its solid-state lithium-metal batteries.
QuantumScape is one of several companies trying to commercialize next-generation batteries for electric vehicles and other uses.
The Silicon Valley-based start-up said it has successfully made its Cobra ceramic separator process the standard in its battery cell production, demonstrating that the improved manufacturing process could work on its assembly lines.
The company touted the efficiency gains, saying the Cobra process treats battery cell components 25 times faster than earlier processes at a fraction of the cost.
The production upgrade lays the foundation for scaling solid-state lithium battery production while also delivering improvements in battery life, charging speeds, and costs.
Analysts were quick to hail the development as a major breakthrough for the solid-state lithium batteries that power electric vehicles.
Improving battery life and charging speeds, and scaling production at lower costs, is seen as key to widespread adoption of electric vehicles.
QuantumScape Chief Executive Officer (CEO) Siva Sivaram said in a news release that the company now has a “powerful path forward for commercializing our next-generation battery technology.”
Solid-state batteries are widely viewed as the key to future electric vehicles, with the technology providing more energy and power, and faster charging speeds.
QuantumScape’s breakthrough has implications for automakers such as General Motors (GM) and Toyota (TM) that are looking to commercialize cheaper and more efficient batteries for their electric vehicles.
German automaker Volkswagen (VLKAF) has been an investor in QuantumScape since 2012 and licenses QuantumScape's manufacturing technology.
Over the past decade, Volkswagen has invested $380 million U.S. in QuantumScape and has a 24% stake in the start-up.
QS stock is now up 16% over the last 12 months and trading at $5.67 U.S. a share. However, the stock is down 42% since its 2020 initial public offering (IPO).
