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Shares of QuantumScape (NYSE: QS) surged on Wednesday, trading over 16% by 1:30 p.m. ET. The developer of solid-state lithium-metal batteries for electric vehicles announced a new partnership, which investors view as a significant milestone and catalyst for the company's stock.
QuantumScape's New Partnership
QuantumScape is collaborating with Corning (NYSE: GLW) to produce ceramic separators in high volumes for commercial applications. Unlike traditional lithium-ion batteries that use polymer separators, QuantumScape's technology uses ceramic separators, which purportedly enhance battery safety, energy density, lifespan, and charging speed.
The partnership with Corning, a leader in glass, optical fibers, and ceramics manufacturing, endorses QuantumScape's technology. Importantly, this collaboration is poised to scale up production of the most vital component of QuantumScape's batteries, pushing the company closer to commercialization.
Is It Time to Stock Up on QuantumScape?
QuantumScape has already secured Volkswagen's (OTC: VWAGY) battery subsidiary, PowerCo, as an anchor investor and customer. In July, QuantumScape and PowerCo enhanced their collaboration and licensing agreement, with PowerCo committing an additional $131 million investment to expedite the development of the QSE-5 battery over the next two years.
QSE-5 is QuantumScape's initial commercial battery cell. The first live demo of the QSE-5 was showcased during a Volkswagen press conference at IAA Mobility in Munich using a modified Ducati V21L race motorcycle powered by QuantumScape's battery cells.
Last quarter, QuantumScape entered a joint development agreement with another global automaker. Additionally, it has an agreement with Murata Manufacturing to explore ceramics production in Japan.
With the new partnership with Corning and plans for field testing its battery cells by 2026, QuantumScape remains in the spotlight. Even so, with its stock more than doubling in three months and the market cap exceeding $8 billion, the valuation is steep for a company yet to record sales from its core product or prove profitability.
Should You Invest $1,000 in QuantumScape Right Now?
Before investing in QuantumScape, consider the following:
The Motley Fool Stock Advisor analyst team recently identified their 10 best stocks for investors, and QuantumScape was not on the list. However, the selected stocks have the potential for significant returns in the future.
This article has been published in fool.com via Yahoo News.
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