October 27 – QuantumScape, a leading innovator in solid-state battery technology and a strategic partner of Volkswagen, recently achieved a critical milestone for 2024 by commencing production of its first B-type cell prototypes, known as QSE-5. The announcement also comes as QuantumScape prepares for leadership changes, with long-time CEO Jagdeep Singh stepping down.
The QSE-5, the company’s flagship B-sample cell, boasts an impressive energy density of over 800 Wh/L with a capacity of 5 Ah. QuantumScape noted that small-scale production has already begun, and initial test deliveries are underway to automotive sector clients, which likely includes Volkswagen’s battery subsidiary, PowerCo. PowerCo, aiming to industrialize solid-state batteries, entered a license partnership with QuantumScape in July 2024 to facilitate the series production of solid-state cells on a gigawatt-hour scale.
“This marks a major milestone for QuantumScape and the battery industry at large,” stated the company in its annual report. “These cells are, as far as we know, the first anode-free solid-state lithium-metal cell design produced for automotive use. They deliver outstanding performance in terms of energy density, discharge power, charging speed, and low-temperature capability.” Still, QuantumScape urged caution, indicating that extensive tests would be conducted over several months to refine aspects like cell reliability and manufacturing efficiency.
Key Specifications of the QSE-5 Cell
The QSE-5 model is an 84.5mm x 65.6mm x 4.6mm solid-state battery cell that offers rapid charging from 10% to 80% in less than 15 minutes at 45 degrees Celsius. With an energy density of 844 Wh/L or 301 Wh/kg and a discharge rate of up to 10C, the cell can perform in temperatures as low as -30°C. The B-type cell follows two previous prototypes: the A0 cell, introduced in December 2022, and the Alpha-2 cell, delivered in March 2024.
In line with advancing from prototypes to scalable production, QuantumScape is refining manufacturing processes suited for large-scale output. The initial “Raptor production process” for limited QSE-5 production has already been implemented, while the “Cobra production process,” aimed at large-scale production of solid-state electrolyte separators, is anticipated to be ready in 2025.
The PowerCo Partnership and Long-Term Goals
QuantumScape’s partnership with PowerCo represents a significant step forward. In the first phase, PowerCo has committed personnel to assist in developing the QSE5 platform toward industrialization. When QuantumScape reaches satisfactory technical progress, PowerCo will receive a license to mass-produce cells using the QuantumScape platform, alongside royalty payments, including an upfront $130 million fee.
The non-exclusive license allows PowerCo to manufacture up to 40 GWh of QuantumScape-based cells annually, with an option to expand capacity. However, PowerCo has yet to establish a specific timeline for when this production target might be achieved, as it depends on ongoing technological advancements and the success of licensing efforts.
CEO Transition and Leadership Changes
QuantumScape’s business model increasingly relies on license income, though the company currently projects a net loss of $280-$300 million for the fiscal year, largely due to its capital-intensive development processes. As QuantumScape transitions from R&D to industrial production, it also undergoes a significant leadership change: Jagdeep Singh, co-founder and CEO since its inception in 2010, will step down at the end of 2024 after nearly 15 years. Dennis Segers, formerly CEO of Xilinx and President of Matrix Semiconductor, is set to assume the role of CEO.
Meanwhile, Volkswagen has appointed Dr. Günther Mendl, Head of the Battery Competence Center at Volkswagen AG, to replace Frank Blome on QuantumScape’s Board of Management following Blome’s departure this summer.
Future Outlook
QuantumScape’s advancements in solid-state battery technology represent potential game-changers for electric vehicles, given the improved performance, safety, and charging times. With Volkswagen’s support and PowerCo’s strategic involvement, the company aims to accelerate the industrialization and large-scale deployment of its solid-state battery technology. QuantumScape’s ongoing focus on refining production processes suggests that full-scale commercialization may soon be on the horizon.
