QuantumScape has entered into an agreement with Volkswagen Group of America to select the location of their joint-venture solid-state battery pilot-line facility by the end of 2021.

The companies are currently contemplating Salzgitter, Germany for the location.

The pilot-line facility, QS-1, will initially be a 1-gigawatt hour (GWh) battery cell commercial production plant for electric vehicle batteries. QuantumScape and Volkswagen intend to expand production capacity by a further 20 GWh at the same location.

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“Our goal has been to bring our solid-state lithium-metal batteries to market as soon as possible,” said QuantumScape CEO and co-founder, Jagdeep Singh.

“This joint venture brings together QuantumScape’s core battery technology with Volkswagen’s deep understanding of high-volume, high-quality production and maximizes our ability to bring this technology into industrial production.”

QS-1 will follow QS-0, QuantumScape’s planned pre-pilot line. In its Q1 Shareholder Letter, QuantumScape highlighted progress on that front, securing a facility in San Jose to house the QS-0 line.

To fulfill the strong inbound interest in its technology, the company also recently announced it was doubling the initial QS-0 capacity to more than 200,000 cells annually, enough for hundreds of test vehicles each year.

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In March, QuantumScape announced an additional US$100m in funding from Volkswagen after the automaker confirmed through tests at its labs in Germany that QuantumScape cells met the established technical milestone.