Volkswagen’s PowerCo Secures Licensing Deal for Future Electric Vehicle Batteries

Recently, on July 11th, PowerCo, a subsidiary of the Volkswagen Group, announced a partnership with the battery startup QuantumScape for the production of batteries for the automaker’s upcoming electric vehicles. According to a press release, the agreement allows PowerCo to obtain a license to manufacture battery cells using QuantumScape’s solid-state battery technology. This replaces a previous joint venture between Volkswagen and QuantumScape. The solid-state battery technology is anticipated to revolutionize electric vehicles by offering increased range, reduced charging times, and improved safety.

QuantumScape, headquartered in San Jose, California, has developed a solid-state ceramic separator that enables the use of a lithium-metal anode, resulting in higher energy density compared to traditional lithium-ion batteries. This groundbreaking technology has the potential to allow electric vehicles to travel up to 500,000 kilometers without significant range degradation.

Under the terms of the non-exclusive licensing agreement, PowerCo has the capability to produce up to 40 gigawatt-hours per year of electric vehicle batteries using QuantumScape’s solid-state battery technology, with the potential to expand to 80 GWh a year. This marks a significant advancement in Volkswagen’s efforts to integrate innovative battery technology into its global fleet.

Established by Volkswagen in 2022, PowerCo is focused on the development and production of battery cells, as well as the vertical integration of the value chain. Based in Salzgitter, Germany, the company aims to redefine the future of battery technology by delivering sustainable and cutting-edge battery cells to its customers.

Furthermore, the company is in the process of building three battery cell factories in Germany, Spain, and Canada, with a total production volume of up to 200 GWh per year, set to begin production in 2026-2027. Additionally, PowerCo recently revealed plans to introduce a new dry coating process for battery cells, eliminating the use of chemical solvents and industrial drying furnaces, resulting in significant cost savings and reduced energy consumption.

Volkswagen Group’s commitment to advancing electric vehicle technology, combined with QuantumScape’s innovative battery solutions, underscores the continuous evolution and transformation of the automotive industry. The collaboration between PowerCo and QuantumScape signifies a significant step towards the widespread adoption of electric vehicles and the advancement of cutting-edge battery technology.