QuantumScape (NYSE:QS) stock is charging higher on Tuesday thanks to a new deal for its batteries.
According to a filing with the U.S. Securities and Exchange Commission (SEC), QuantumScape has signed an agreement with an unnamed automotive company. This will have it providing the company with 10 MWh worth of batteries.
While QuantumScape doesn’t name the company in its filing, it does note that it’s “a second top ten (by global revenues) automotive original equipment manufacturer.” The deal covers QS’ solid-state battery cells and will have the OEM company evaluating them.
QuantumScape notes that the OEM has already evaluated early cells and that the intermediate milestones cover more advanced prototypes. It expects to have these ready and delivered before QS-0 starts production in 2023.
It’s worth pointing out that QuantumScape’s solid-state batteries have caught the attention of other automotive companies. Among those is Volkswagen (OTCMKTS:VWAGY), which plans to use them in a new line of electric vehicles (EVs).
Volkswagen’s current plan is to have some 25 million EVs on the road by 2030. That means there’s already plenty of demand for QuantumScape’s solid-state batteries. Based on today’s news more companies in the EV space are also betting on the company’s battery development.
QS stock is seeing heavy trading on today’s news. As of this writing, more than 23 million shares of the stock have changed hands. That’s a major jump compared to its daily average trading volume of 8.4 million shares.
QS stock was up 12.8% as of Tuesday morning.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.