QuantumScape and The Future of EV Battery Technology

Meera BluePrint 09.10.2020

Battery technology will be a crucial part of the electric vehicle and renewable energy revolution

San Jose-based QuantumScape has spent the last 10 years developing new battery technology

Now they are ready to go public

QuantumScape, a silicon valley battery startup, announced it will go public Via SPAC. This is one of many transportation-related companies to recently announce they will be joining the public markets via a reverse merger (Others include; Luminar, Nikola, Fisker, and more).

QuantumScape produces lithium-metal batteries that use a solid ceramic electrolyte which is safer than the standard liquid electrolyte. QS's batteries have a higher energy density exceeding 400 WH/kg much better than the standard 250 Wh/kg lithium-ion batteries. As a result, QuantamScape CEO Jagdeep Singh claims that their batteries can recharge up to 80% capacity in just 15 minutes while also offering a 50-100% range increase over the competition.

Range and charge times have been one of the largest hurdles to battery technology. QS's battery technology could be an industry game-changer. However, manufacturing these batteries is very costly. Singh believes his team, over the last 10 years, has revolutionized the technology and gotten it to a place where capital can be deployed to manufacture at scale. Lower battery costs are an essential part of the companies mission to be a battery supplier for the industry as a whole.

QuantumScape has drawn attention from the likes of Volkswagen, whom they plan to partner with to produce batteries for starting in 2024. QuantumScape is now valued at $3.3 billion after raises led by Bill Gates, Khosla Ventures, Kleiner Perkins, The Qatar Investment Authority, and more. Singh sited Kensington Capital's automotive expertise as a key piece for the reverse merger partnership.

Learn Something

• Reuters: VW-backed battery maker QuantumScape to go public at $3.3 billion valuation

• CNBC: Bill Gates-backed vehicle battery supplier to go public through SPAC deal

• Arrow.com: Current State of Electric Vehicle Battery Technology

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