Dive Brief:
- Volkswagen Group subsidiary PowerCo and battery startup QuantumScape have reached an agreement to mass produce batteries for the automaker’s future electric vehicles, according to a July 11 press release.
- As part of the deal, QuantumScape will grant PowerCo a license to manufacture battery cells using its proprietary solid-state battery technology.
- The new agreement supersedes an earlier joint venture between Volkswagen and QuantumScape to co-manufacture EV batteries, which was first announced in May 2021.
Dive Insight:
Solid state batteries are considered to be one of the next big breakthroughs for EVs. This design can improve range, reduce charging times and elevate safety by reducing the risk of fires.
San Jose, California-based QuantumScape developed a proprietary solid-state ceramic separator that enables the use of a lithium-metal anode in a battery.
These batteries offer higher energy density than conventional lithium-ion batteries using graphite-based anodes, as lithium can store more energy relative to its mass. Therefore, lithium-metal anodes are an excellent substitute for applications where weight and size are a factor, according to QuantumScape.
QuantumScape says that more durable solid-state batteries could allow an EV to travel up to 500,000 kilometers (roughly 311,000 miles) without any noticeable loss of range due to battery degradation.
Volkswagen has worked with QuantumScape since 2012 and is currently its largest automotive shareholder.
Under the non-exclusive licensing deal, PowerCo can manufacture up to 40 gigawatt-hours per year of electric vehicle batteries using Quantumscape’s proprietary solid-state battery technology, with the option to expand to 80 GWh a year.
QuantumScape’s solid-state EV battery design also contains no liquid electrolyte like conventional lithium-ion batteries. This design eliminates the flammability risks when overheated, which has led to EV battery fires, according to the American Chemical Society.
“Electric vehicles are the future of mobility, and this agreement with QuantumScape will ensure the Volkswagen Group’s global fleet has access to this groundbreaking battery technology for years to come,” said Thomas Schmall, Volkswagen Group board member, in the press release.
PowerCo was founded by Volkswagen in 2022 and is responsible for the development and production of battery cells as well as the vertical integration of the value chain. The company is headquartered in Salzgitter, Germany.
“We want to redefine the future of battery technology, bringing the most sustainable and cutting-edge battery cells to our customers,” said Frank Blome, CEO of PowerCo. “We have been collaborating and testing QuantumScape prototype cells for years now and we are looking forward to bringing this technology of the future into series production.”
PowerCo is currently building three battery cell factories in Germany, Spain and Canada with a total production volume of up to 200 GWh per year. Production is estimated to start in 2026-2027.
In June 2023, PowerCo announced plans to start a new dry coating process for battery cells that eliminates the use of chemical solvents, industrial drying furnaces and suction systems used in battery electrode production.
The company says the new process could save millions of dollars in costs and reduce energy consumption at EV battery factories by as much as 30%. The dry coat process can also be applied onto battery foils more precisely, which improves a battery’s fast-charging capabilities, according to Volkswagen.