Shares of QuantumScape (NYSE:QS) stock are spiking higher following an announcement from Volkswagen (OTCMKTS:VWAGY) battery subsidiary PowerCo. Back in 2018, Volkswagen agreed to invest $100 million into QuantumScape in order to take advantage of the company’s solid-state battery (SSB) potential. The two companies have a long history dating back to 2012.
PowerCo recently announced the results of its A-sample endurance test for QuantumScape’s 24-layer SSB. The battery performed better than expected by completing over 1,000 charging cycles. At the same time, it retained more than 95% capacity.
“For an electric car with a WLTP range of 500-600 kilometres, this corresponds to a total mileage of more than half a million kilometres,” said PowerCo. Half a million kilometers equates to 310,685 miles.
QS Stock Spikes on Positive SSB Test Results
The industry-standard target for SSBs similar to QuantumScape’s SSB in its development phase is a maximum capacity loss of 20% over 700 charging cycles. Therefore, QuantumScape significantly outperformed in its test. The months-long test was conducted at PowerCo’s battery facilities in Salzgitter, Germany.
“The final result of this development could be a battery cell that enables long ranges, can be charged super-quickly and practically does not age,” said PowerCo CEO Frank Blome. “We are convinced of the solid-state cell and are continuing to work at full speed with our partner QuantumScape towards series production.”
Now, QuantumScape will focus on completing and scaling the manufacturing process for the SSB. QuantumScape CEO Jagdeep Singh stated that he is unaware of any other SSB that has performed as well as QuantumScape’s SSB in its recent test.
This announcement was much-needed for QS stockholders, as QuantumScape’s last press release was published on Oct. 25 and detailed the company’s third-quarter earnings. In its third-quarter shareholder letter, QuantumScape announced that its A0 prototype cell had completed over 1,000 full-cycle equivalents with a discharge energy retention of over 95%.
Still, neither PowerCo nor QuantumScape provided a timeline for the production or commercialization of the SSB. Creating innovative technology isn’t an easy process, so it appears that shareholders will have to wait longer for further updates.
On the date of publication, Eddie Pan did not hold (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.
