Shares of Solid Power (SLDP 4.27%) were moving higher today, even though there was no news out on the stock. Instead, the maker of solid-state batteries was lifted on news from rival Quantumscape (QS 5.69%), which was soaring today after Volkswagen (VWAGY 1.26%) said yesterday that Quantumscape's solid-state cell passed its first endurance test.
Since both companies are working on solid-state battery technology, the news also lifted shares of Solid Power.
As of 2:50 p.m. ET, Solid Power stock was up 10.5%, while Quantumscape had soared 46.5% at the same time.
Image source: Getty Images.
Why solid-state battery investors are cheering
Solid-state batteries are still a developmental technology, though they have several advantages over the traditional lithium-ion batteries used in electrical vehicles. They provide longer ranges at the same size and charge more quickly.
Today, the technology seemed to take a notable step forward as Volkswagen announced that a solid-state battery from Quantumscape achieved more than 1,000 charging cycles and still had more than 95% capacity. Volkswagen concluded that a car using the battery, depending on the model, could drive more than 300,000 miles without a noticeable loss in range.
Frank Blome, the CEO of Volkswagen's battery company PowerCo said, "These are very encouraging test results and a milestone on the way to series production of the solid-state cell.
What it means for Solid Power
Volkswagen's findings don't have any direct implications for Solid Power, but at this point, good news for the industry is good news for the company. At the very least, the successful test could encourage increased investment in solid-state battery technologies like Solid Power, Quantumscape, and others.
Solid Power is a much smaller company than Quantumscape, and its revenue is minimal at this point. Both stocks have a lot of upside potential, however, if solid-state technology begins to gain adoption.
