VW Seeks 40% EV Range Extension With Battery Deal

PowerCo, the Volkswagen Group battery company, will use QuantumScape’s innovative solid-state lithium metal battery technology to mass-produce battery cells for passenger electric vehicles.

QuantumScape’s CEO and President speaks about the agreement. Video used courtesy of QuantumScape

QuantumScape’s technology is based on a proprietary solid-state ceramic separator that allows for a pure lithium-metal anode for improved energy and power density. Using ceramic materials enhances safety by eliminating the combustible materials in conventional separator designs.

The agreement is contingent on QuantumScape achieving technical milestones and paying royalties. At that point, PowerCo will be granted a non-exclusive license for volume production of the solid-state battery cells. The license will initially grant PowerCo the right to manufacture up to 40 gigawatt-hours (GWh) per year of batteries with the option to expand to 80 GWh annually, enough to supply roughly one million electric vehicles.

Solid-state battery cell. Image used courtesy of QuantumScape

The Promise of Solid-State EV Batteries

QuantumScape’s battery design innovations were developed to address traditional lithium-ion batteries' fast-approaching energy density limitations. 

The key to QuantumScape’s technology is a ceramic solid-state separator that substitutes for the polymer separators currently used in most lithium-ion battery cells. With a ceramic separator, the graphite/silicon anodes used in conventional lithium-ion batteries can be replaced with lithium-metal anodes, which yield much higher energy densities.

Higher battery energy densities are key to e-mobility applications that need to optimize for weight, energy storage capacity, and power delivery. QuantumScape says its solid-state battery technology’s energy density could extend EV ranges by as much as 40% compared with current lithium-ion batteries. 

QuantumScape’s solid-state lithium-metal batteries also support faster charge times since they do not rely on a lithium diffusion process, a huge performance benefit for EV drivers. They are safer since the separator does not contain any combustible organic materials.         

Solid-state lithium-metal cell design. Image used courtesy of QuantumScape

Next Step: Solid-State Volume Production

Earlier this year, Volkswagen Group announced that QuantumScape’s solid-state battery A-samples had exceeded energy retention goals. The battery technology also surpassed industry standards for robustness by successfully completing 1,000 charging cycles while maintaining 95% of rated storage capacity, setting up this latest move to production manufacturing.    

The challenge to adopting solid-state battery technologies in EVs has mainly been the ability to cost effectively manufacture the batteries in high volume. With this latest agreement, PowerCo (Volkswagen) and QuantumScape are tackling this issue head-on. 

Manufacturing ceramic separators. Image used courtesy of QuantumScape

Committed to the e-Mobility Future

According to Thomas Schmall, Volkswagen Group board Member for technology, Volkswagen is committed to advancing electric vehicle technologies and setting new performance benchmarks. The agreement will ensure the company’s access to QuantumScape’s battery technology for the foreseeable future as it executes its vision for electrified vehicle fleets. 

Volkswagen Group founded PowerCo SE in 2022. It operates as a wholly owned subsidiary consolidating all Volkswagen electric vehicle battery development initiatives under one roof.

Founded in 2010, QuantumScape is a publicly traded company (NYSE: QS) developing solid-state lithium-metal batteries for electric vehicles and energy storage.