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VW doubles down on solid-state batteries

Metal Tech News - July 24, 2025

Injects an additional $131M into QuantumScape to accelerate next-gen EV battery rollout.

To build future Volkswagen electric vehicles that travel further, charge faster, and operate safer than EVs powered by traditional lithium-ion batteries, the German automaker's battery company, PowerCo, is backing the accelerated commercialization of high-performance solid-state batteries developed by QuantumScape Corp.

A year ago, PowerCo partnered with QuantumScape to advance the development of QSE-5, a solid-state battery designed to deliver an unparalleled combination of energy density, fast-charging, high power, and safety.

For EV drivers, this translates to less range anxiety, shorter charging stops, and lower fire risks.

Despite the promise of solid-state tech, real-world performance and manufacturing challenges have continued to stall its progress.

QuantumScape says QSE-5 addresses the high cost, complex production, and durability barriers that have long hampered solid-state development.

As a result, QSE-5 is a near-commercial-ready battery that can store roughly 20% more electricity than high-end lithium-ion EV batteries, charges from 10 to 90% in less than 15 minutes, and retains more than 95% of its original capacity after 1,000 charges.

Eager to put these advanced batteries in future VW models, PowerCo is investing $131 million to accelerate the development of a QSE-5 battery pilot line, marking a major step forward in commercializing QuantumScape's solid-state battery technology.

This latest infusion, which follows a $130 million investment by PowerCo last July, will enable QuantumScape to deliver higher volume of QSE-5 prototypes to the VW battery company.

The deal gives PowerCo license to manufacture up to 45 gigawatt-hours (GWh) of QuantumScape batteries annually – enough to power hundreds of thousands of EVs –with the option to scale up to 80 GWh.

"This expanded agreement is a clear signal of the growing strategic, technical and financial alignment between the two companies," said QuantumScape President and CEO Siva Sivaram. "It reflects our shared confidence in QSE-5 as a game-changing platform for the battery industry."

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Shane Lasley, Metal Tech News

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With more than 17 years of covering mining, Shane is renowned for his insights and in-depth analysis of mining, mineral exploration, and technology metals.

 
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