About a month ago, QuantumScape (QS -1.99%) showed off its next-generation solid-state lithium-metal battery technology. This week, the company inked a deal that will help scale production and commercialize that technology.
Investors jumped into QuantumScape stock this week as a result, driving shares about 14% higher for the week as of Thursday afternoon, according to data provided by S&P Global Market Intelligence.
Image source: QuantumScape.
A big step for QuantumScape
This week's move was mostly driven by QuantumScape's announcement that it has signed a manufacturing agreement with specialty glass and ceramics company Corning. Last month, the company showed off its technology live for the first time. A Ducati racing motorcycle, powered by its solid-state battery cells, drove across the main stage of a mobility summit in Germany.
QuantumScape expects to provide safer and more efficient batteries for electric vehicles with its solid-state ceramic separators. It now has a major manufacturer in Corning to help develop and commercialize those ceramic parts.
QuantumScape has been a story stock. While providing good lab results, its technology had yet to be proven on a larger scale. Investors had also been hesitant to buy QuantumScape shares until the company provided a plan to successfully commercialize the technology.
It now has a path to do so with Corning's help. That was enough for investors to believe the story is playing out. If it continues to do so, the stock could also continue to move higher.
