QuantumScape (QS 4.35%) stock is rocketing higher this morning, and for good reason, too. QuantumScape's solid-state battery technology has been touted to have the potential to revolutionize electric vehicle (EV) batteries and spur an increase in EV adoption.
QuantumScape surprised investors with a live demonstration today, and investors bid the stock up as much as 36%. As of 10:45 a.m. ET, shares remained higher by 21.2%.
Image source: QuantumScape.
QuantumScape's first live vehicle demonstration
QuantumScape has partnered with Volkswagen Group on its path to commercialize its next-generation solid-state lithium-metal battery technology. The partnership with the global automaker's battery unit, PowerCo, gives QuantumScape a way to accelerate implementation of the technology.
Today, at Volkswagen's press conference at the launch of the IAA Mobility summit in Munich, QuantumScape's battery cells powered a Ducati race motorcycle across the main stage. It was the first-ever public demonstration of the solid-state battery technology.
QuantumScape's batteries include ceramic separators that should lead to safer, faster-charging, and more efficient solid-state lithium-metal batteries. This could ease range anxiety and spur demand for EVs from more consumers.
QuantumScape CEO Siva Sivaram summed up the demonstration, stating: "Today we've crossed the threshold from possibility to reality. We believe that our partnership with PowerCo, together with Ducati as our demonstration launch partner, positions us to scale our transformative technology to gigawatt-hour production."
NASDAQ: QS
Key Data Points
Positive lab results from QuantumScape have been trickling in over the past couple of years. Commercialization at scale is still at least a year away, but a live demonstration has QuantumScape's massive potential in the spotlight today.
Risks, including competition in the solid-state battery space, remain. Investors who believe QuantumScape will succeed at scaling its technology still might want to allocate an appropriate amount of capital, even after today's jump.
