• Volkswagen plans to license solid-state battery tech
  • QuantumScape, the battery supplier, will use VW as a key investor
  • The deal gives VW enough batteries to possibly make approximately one million EVs a year

Volkswagen Group has reached a deal to license solid-state battery technology from QuantumScape, a U.S. battery startup that counts the German automaker as a key investor.

Solid-state batteries hold the potential to offer significantly longer range, faster charging times, reduced costs, and enhanced safety for electric vehicles. However, challenges exist in making the technology suitable for the demanding conditions of automotive applications, as well as mass production.

Under the deal announced on Monday, which replaces a previously planned joint venture between the two companies, VW Group's PowerCo battery company will manufacture solid-state batteries using QuantumScape technology under a non-exclusive license.

The deal will initially enable PowerCo to build up to 40 gwh of batteries per year, with the option to increase this to 80 gwh, or enough for approximately one million EVs. QuantumScape said VW Group will be its first customer.

QuantumScape ceramic separator

QuantumScape ceramic separator

A timeline wasn't mentioned but VW Group said production will start pending “satisfactory technical progress.” VW Group has previously hinted at solid-state batteries being ready for production in the second half of the decade.

Some of the performance targets the automaker has also hinted at include 30% more range than current liquid-type lithium-ion batteries and the ability to charge to 80% capacity in as little as 12 minutes.

According to VW Group, the key in QuantumScape’s solid-state battery is a proprietary solid-state ceramic separator, which enables the use of a pure lithium-metal anode. Recent testing of a prototype cell demonstrated more than 1,000 charging cycles without degradation. The automaker said the amount of charging corresponds to a total mileage of more than 310,000 miles for a typical EV, or much more than the average life of a vehicle, regardless of powertrain type.