QuantumScape (QS 6.57% ) Stock has risen recently on rumors of a potential partnership with Porsche. Even before the news, the stock has been on an uptrend since mid-March. Let’s see what the solid state battery company has been up to lately and what its progress means for its stock.
High customer interest
To date, QuantumScape has worked with four key customers: three automotive product manufacturers and one stationary energy storage product manufacturer. Apart from volkswagen (VWAGY -0.56% ), QuantumScape is working with two other automotive original equipment manufacturers (OEMs). One of them is a top 10 global automaker by revenue, and the other is a luxury auto company. QuantumScape did not disclose the names of these two automakers. The luxury car company could be Porsche. After testing and validating the QuantumScape cells, these companies intend to use them in their vehicles.
QuantumScape has also collaborated with Fluency Energy ( FLNC 6.02% ) to supply batteries for use in the latter’s storage products.
The solid-state batteries studied by QuantumScape could significantly change the landscape of electric vehicles. The company estimates that its solid-state batteries will be much more energy dense than the lithium-ion batteries currently in use. Batteries can significantly increase the range of an electric vehicle for the same battery size.
As shown in the graph above, QuantumScape expects its solid state cells to be much more energy dense than conventional lithium-ion cells with silicon or carbon anode. QuantumScape cells use a solid-state separator instead of the porous separators used in conventional lithium-ion batteries. The company has worked for more than 10 years to develop this separator material. Additionally, QuantumScape cells do not have an anode at the time of manufacture; a lithium-metal anode forms when the cells are charged. This makes it possible to increase the volumetric density of the cell.
Progress on track
QuantumScape has completed its 2021 milestones as planned. It successfully tested 10-layer cells in 2021.
The company now needs to develop multi-layer cells to commercial dimensions while adding several additional layers. The final cells used in vehicles may require several dozen layers in each battery. In addition, the company must minimize volume manufacturing costs.
QuantumScape plans to produce cells for use in test cars in 2023 and begin commercial production in 2024. If things go according to QuantumScape’s plans, the company will have to a huge market for its cells. In total, QuantumScape could already successfully deliver its batteries to automotive suppliers in three years.
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