Solid-state battery maker QuantumScape (QS +0.42%) has been moving closer to commercializing its technology, and it received a major boost of confidence from a global automaker today.
News that the research and development (R&D) arm of Honda Motor (HMC +2.64%) is working with QuantumScape to advance its battery platform for electric vehicles (EVs) and other applications sent QuantumScape stock soaring today. As of 11:21, shares were up 12.9% after paring some of an earlier 16% gain.
Image source: The Motley Fool.
Massive market opportunity
QuantumScape's technology could revolutionize EV batteries. It's not the only company working on solid-state batteries, though, so a partnership with Honda is meaningful for investors hoping to choose a winner in the race to commercialization. That has people buying the stock today.
Honda R&D COO praised QuantumScape, stating, "We see potential for QS technology to add value across a range of applications, including automotive, and we are excited to move forward into the next phase of our partnership."
NASDAQ: QS
Key Data Points
That's quite a vote of confidence from a major auto company, and gives investors insight into just how big the market could be for QuantumScape and others developing solid-state batteries. Electric cars, motorcycles, power tools, and generators are all Honda products that could utilize the batteries.
Investors see the potential and are betting on QuantumScape stock today. Those who do should know that it's still speculative, so allocate accordingly, as the risk remains high.
