Collaboration between QuantumScape and PowerCo in Solid-State Battery projects broadened
QuantumScape and PowerCo Expand Partnership to Accelerate Solid-State Battery Development
In a significant development, QuantumScape and PowerCo have expanded their strategic partnership to accelerate the commercialization of QuantumScape's QSE-5 solid-state battery (SSB) technology. This updated agreement was announced in late July 2025.
PowerCo, a subsidiary of the Volkswagen Group, has committed to providing up to $131 million in new funding over two years. The funding is contingent on achieving specific development and scale-up milestones, with payments expected to start in 2025.
Under the expanded deal, PowerCo gains the right to produce up to five gigawatt-hours (GWh) of QSE-5-based cells annually, applicable to customers outside the Volkswagen Group. This increases its licensed production capacity to 40 GWh per year, with an option to scale up to 80 GWh later.
The production of these batteries will take place in a pilot line in San Jose, California. The integration aims to achieve higher production capacity faster, with PowerCo being integrated early into the production and automation processes of QSE-5 cells.
QuantumScape’s technology, which hinges on a proprietary solid-state ceramic separator enabling a pure lithium-metal anode, promises high energy density (over 844 Wh/L), fast charging (about 12.2 minutes from 10% to 80% state of charge), and improved safety. The companies are collaborating through dedicated joint scale-up teams to advance pilot production at QuantumScape’s San Jose facility.
The latest partnership builds on an initial agreement from July 2024, where PowerCo had committed up to $130 million on satisfactory technical progress. This expanded collaboration also establishes the necessary infrastructure for technology transfer and gives PowerCo access to certain future technologies from QuantumScape.
With this strategic partnership, both companies aim to lead the solid-state battery rollout for Volkswagen and other customers, significantly de-risking and accelerating QuantumScape’s path to mass production of solid-state batteries.
[1] QuantumScape Press Release, July 2025. [2] PowerCo Press Release, July 2025. [3] Electrek, July 2025. [4] Green Car Reports, July 2025.
1 The expanded partnership between QuantumScape and PowerCo, a subsidiary of the Volkswagen Group, not only includes new funding for solid-state battery development but also grants PowerCo the right to produce up to five gigawatt-hours of QSE-5-based cells each year, primarily for business clients outside the Volkswagen Group, thereby significant involvement in the finance and technology aspect of the project.
2 The collaboration between QuantumScape and PowerCo aims to leverage the advantages of QuantumScape’s proprietary solid-state battery technology, such as high energy density, fast charging capabilities, and improved safety, to accelerate the commercialization of this technology in the business sector, particularly within the automotive industry, thereby driving innovation and growth in the finance and technology space.
