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Volkswagen in major deal to produce solid state batteries for one million EVs

VW battery subsidiary PowerCo has licenced solid state battery technology from QuantumScape with big plans to power production cars

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Volkswagen Group subsidiary PowerCo has teamed up with QuantumScape to industrialise solid-state batteries. In what could be a landmark agreement for the Volkswagen Group’s electric future, PowerCo will be able to produce solid-state batteries for passenger electric vehicles with a target of up to one million batteries per year. 

PowerCo, a company set up in 2022 which handles the production of batteries used in VW Group vehicles, has agreed a non-exclusive licence to use Californian company Quantumscape’s solid-state battery technology. Volkswagen says Quantumscape’s battery can provide “exceptional energy and power density, fast charging and a robust safety profile”.

Frank Blome, CEO of PowerCo said, “We have been collaborating and testing QuantumScape prototype cells for years now and we are looking forward to bringing this technology of the future into series production”.

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“Electric vehicles are the future of mobility, and this agreement with QuantumScape will ensure the Volkswagen Group’s global fleet has access to this groundbreaking battery technology for years to come,” said Thomas Schmall, Volkswagen Group Board Member for Technology. However, Volkswagen has not specified a date for when to expect this new technology in production cars. 

Under the licence agreement between the companies, PowerCo will be able to manufacture up to 40 gigawatt-hours per year with the option to expand to 80gWh. In comparison, Tesla’s existing ‘gigafactory’ in Nevada is planning to produce 100gWh per year, but of the American car company’s next-generation cylindrical battery rather than a solid-state battery like PowerCo’s. 

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Senior news reporter

A keen petrol-head, Alastair Crooks has a degree in journalism and worked as a car salesman for a variety of manufacturers before joining Auto Express in Spring 2019 as a Content Editor. Now, as our senior news reporter, his daily duties involve tracking down the latest news and writing reviews.

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