Shares of QuantumScape (NYSE:QS) got a huge boost this morning after it reported successfully meeting a technical milestone that will trigger a $100 million investment from strategic partner Volkswagen (OTCMKTS:VWAGY). QS stock surged more than 15% in pre-market trading.
InvestorPlace readers may recall that VW is planning on integrating QuantumScape’s battery technology in its vehicles by the middle of the decade. It’s all part of the German car maker’s ambitious plan for switching to in-house supply of solid-state batteries.
The milestone that QuantumScape hit required Volkswagen to successfully test the latest generation of the battery maker’s solid-state lithium-metal cells in its labs in Germany.
“Achievement of this milestone is an important step for QuantumScape and we look forward to receiving and testing subsequent generations of cells, with the goal of getting solid-state technology into series production,” said Frank Blome, head of VW’s Center of Excellence Battery Cell.
QS Stock Surge Follows Biden EV Endorsement
Investors may also be pouring in to QS stock following yesterday’s reveal of President Joe Biden’s $2 trillion infrastructure mega-plan. The plan includes a significant push for electric vehicles, including rebates and tax incentives to encourage EV purchases.
With a soon-to-be $200-million total investment from the world’s second-largest automaker, QuantumScape is poised to be a significant participant in the German auto giant’s battery cell plans.
That investment should go far in helping QuantumScape advance in its efforts to produce multilayered battery cells, improving from the current four-layer type to the 12-layer version needed to be commercially viable.
VW’s vote of confidence should also be a jolt that can help QS stock power higher in the coming weeks.
On the date of publication, Robert Lakin did not have (either directly or indirectly) any positions in the securities mentioned in this article.
InvestorPlace contributor Robert Lakin is a veteran financial writer and editor, following fintech, agtech and property tech startups.