QuantumScape, which is developing solid-state lithium battery technology, is expanding its strategic collaboration and licensing arrangement with Volkswagen subsidiary PowerCo.

The companies originally partnered in July 2024. The updated agreement is designed to accelerate QuantumScape’s QSE-5 battery development pilot line in San Jose, a step forward in the industrialization of its solid-state battery technology.

Under the terms of the agreement, PowerCo will provide up to $131 million in new payments over the next two years upon the joint scale-up team achieving certain milestones. The first milestones have been achieved, and QuantumScape expects to begin receiving payments later this year. This is in addition to the previously announced $130 million that will be due to QuantumScape upon satisfactory technical progress and execution of the licensing agreement.

The agreement enables PowerCo to engage earlier in QSE-5 production and automation efforts, advancing the ramp-up of the pilot line. This is essential for scaling manufacturing and executing the technology transfer required to bring QSE-5 to global markets, while also enabling higher-volume prototype cell deliveries to PowerCo.

The expansion will allow PowerCo the right under the licensing agreement to produce up to an additional 5 GWh of QSE-5-based cells annually, including for customers outside the Volkswagen Group, and the right 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 QS. “It reflects our shared confidence in QSE-5 as a game-changing platform for the battery industry.”

Source: QuantumScape