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Dive Overview:
- Volkswagen Group subsidiary PowerCo and battery startup QuantumScape have reached an agreement to mass-produce batteries for the automaker's future electric vehicles, according to a press release on July 11.
- As part of the agreement, QuantumScape will grant PowerCo a license to manufacture battery cells using its proprietary solid-state battery technology.
- The new agreement replaces a previous joint venture between Volkswagen and QuantumScape, first announced in May 2021, to jointly manufacture EV batteries.
Dive Insights:
Solid-state batteries are seen as one of the next big advancements for EVs, with the design offering longer range, faster charging times and improved safety by reducing the risk of fire.
San Jose, California-based QuantumScape has developed a proprietary solid ceramic separator that enables the use of lithium metal anodes in its batteries.
These batteries offer higher energy density than traditional lithium-ion batteries that use graphite-based anodes because lithium can store more energy relative to its mass, making lithium metal anodes an ideal alternative for applications where weight and size are critical factors, according to QuantumScape.
QuantumScape says its more durable solid-state batteries will enable EVs to travel up to 500,000 kilometers without a noticeable loss of range due to battery degradation.
Volkswagen has been partnering with QuantumScape since 2012 and is currently the company's largest automotive shareholder.
Under the non-exclusive license agreement, PowerCo will be able to use Quantumscape's proprietary solid-state battery technology to produce up to 40 gigawatt-hours of electric vehicle batteries per year, with an option to scale up to 80 GWh per year.
QuantumScape's solid-state EV battery design also does not contain a liquid electrolyte like traditional lithium-ion batteries, which according to the American Chemical Society, eliminates the risk of flammability in the event of overheating that could lead to EV battery fires.
“Electric vehicles are the future of mobility and this agreement with QuantumScape will ensure that Volkswagen Group's fleet worldwide will have access to this groundbreaking battery technology for years to come,” Volkswagen Group Executive Board member Thomas Schmall said in a press release.
PowerCo was founded by Volkswagen in 2022 and is responsible for the development and production of battery cells and vertical integration of the value chain. The company is headquartered in Salzgitter, Germany.
“We want to redefine the future of battery technology by providing our customers with the most sustainable, cutting-edge battery cells,” said Frank Blome, CEO of PowerCo. “We have been collaborating to develop and test QuantumScape prototype cells for years now, and we look forward to bringing this future technology into mass production.”
PowerCo is currently building three battery cell factories in Germany, Spain and Canada with a total capacity of up to 200GWh per year, with production expected to start between 2026-2027.
In June 2023, Powerco announced plans to launch a new dry-coating process for battery cells that eliminates the use of chemical solvents, industrial drying ovens and suction systems used in battery electrode manufacturing.
The company says the new process could save EV battery factories millions of dollars in costs and reduce energy consumption by up to 30 percent. Volkswagen also says the dry coat process can apply the coating more precisely to the battery foil, improving the batteries' fast-charging capabilities.
