PowerCo, Volkswagen Group’s battery firm, and QuantumScape have announced they have entered into an agreement to industrialise QuantumScape’s next-generation solid-state lithium-metal battery technology.

Upon satisfactory technical progress and certain royalty payments, QuantumScape will grant PowerCo the license to mass produce battery cells based on QuantumScape’s technology platform.

Under the non-exclusive license, PowerCo can manufacture up to 40 gigawatt-hours (GWh) per year using QuantumScape’s technology with the option to expand up to 80 GWh annually, enough to outfit approximately one million vehicles per year.

The agreement supersedes an earlier joint venture between the Volkswagen Group and QuantumScape to co-manufacture batteries.

Frank Blome, CEO of PowerCo, said: “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.”

Dr. Siva Sivaram, CEO and president of QuantumScape, said: “Working closely with PowerCo as our first customer will help us accelerate commercialisation and adoption of these game-changing batteries together.”

QuantumScape’s technology platform is based on its proprietary solid-state ceramic separator, which enables the use of a pure lithium-metal anode – a transformative innovation that is designed for exceptional energy and power density, fast charging and a robust safety profile.

Together, the companies will target a product that will be scaled-up for integration in a Volkswagen Group vehicle series.