What happened
Aspiring electric-vehicle battery maker QuantumScape (QS +6.96%) doesn't have a product yet and is still years -- rather than months -- away from potential commercialization. But the solid-state battery technology it is working on has so much potential that its progress is being watched closely. After the company presented its quarterly update last night, investors felt good about a new development. That helped shares of QuantumScape jump today. As of 2 p.m. EDT, the stock is up 11% on the day.
So what
QuantumScape believes it has a ceramic material that can be used as a solid-state separator in a battery cell to help overcome slow charging times, and improve performance and safety versus current lithium-ion batteries.
Image source: Getty Images.
Earlier this year, QuantumScape announced it had successfully built its first multilayer battery cell with four layers -- a milestone showing the technology is feasible. Yesterday, the company said it has successfully produced, and is now testing, its first 10-layer battery cells. This is the level needed to produce a commercially viable product.
Now what
The company had previously set a plan to have the multilayer battery cell in testing by the end of 2021, so it was happy to announce that goal came in ahead of schedule. Management was also excited to update investors on the progress of its first large, pre-pilot manufacturing facility and said this facility "will help us meet demand for test cells from prospective customers."
One of those prospective customers is Volkswagen (VWAGY +0.65%). The technology is far from proven, and commercialization remains uncertain. However, having the German automaker available as a potential market-in-waiting for QuantumScape's batteries likely provides another level of confidence as well. For now, that was enough to help move shares up double digits today.
