QuantumScape (QS 3.62%) is building solid-state lithium-metal batteries for electric vehicles (EV) that are seemingly far better than the traditional lithium-ion batteries in terms of energy density, charging, cost, and safety, among other things.
QuantumScape has yet to commercialize its technology, but that hasn't deterred investors from piling into the stock at every hint of progress. In June, shares of QuantumScape jumped a whopping 68%, according to data provided by S&P Global Market Intelligence.
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QuantumScape meets a key 2025 goal
QuantumScape is presently working with its prospective launch customer and has shipped test samples of Raptor-powered QSE-5, its first planned commercial battery cell. Although QuantumScape has relied on its Raptor heat treatment process to produce separator films for QSE-5 solid-state battery cells so far, it has been working to transition to a new separator production process called Cobra for several months now.
In June, QuantumScape met its primary 2025 goal by integrating the Cobra process into its baseline cell production to replace Raptor. Since Cobra is faster and more energy-efficient, QuantumScape calls it a "step-change innovation" in ceramic separator manufacturing and believes it should help it scale production faster.
There are three reasons why investors saw this development as a huge milestone and sent QuantumScape stock soaring over 60% in the last week of June alone.
NASDAQ: QS
Key Data Points
First, QuantumScape has been able to bring the Cobra separator process into its production system ahead of schedule. Second, the company should now be able to install higher-volume cell assembly equipment in line with Cobra's higher throughput, allowing it to improve the quality and quantity of its QSE-5 B1 samples. The B1 version of QSE-5 cells are near-production prototypes. Third and most importantly, QuantumScape should be able to send QSE-5 B1 samples this year to potential customers for field testing in 2026.
Is QuantumScape stock a buy?
After testing QuantumScape's prototype cells for several years, Volkswagen's battery subsidiary PowerCo is all set to become QuantumScape's anchor customer. Last year, PowerCo agreed to mass-produce battery cells based on QuantumScape's technology under a non-exclusive license. With Volkswagen's backing confirming the viability of QuantumScape's solid-state battery technology, the latter is now trying to expand its licensing partnerships with other automakers.
So there are a lot of catalysts ahead for QuantumScape stock to keep humming, including forging agreements with other automakers, producing cell samples at scale, and sending them out for field testing in 2026. If QuantumScape's battery cells pass field testing, there could be no stopping this stock as the company then proceeds to commercialize its technology.
However, a lot could still go wrong in between, and even commercial production of solid-state battery cells doesn't guarantee their success. That's the biggest risk to keep in mind if you're thinking of buying QuantumScape stock now.
