QuantumScape shares surged more than 30% in premarket trading Wednesday after the solid-state battery developer announced it had successfully integrated an advanced manufacturing process that could accelerate production of next-generation batteries for electric vehicles.
The San Jose-based company said Tuesday it achieved a key milestone by incorporating its "Cobra" separator process into baseline cell production, marking progress toward commercial-scale manufacturing of solid-state batteries that promise faster charging and longer range than current lithium-ion technology.
The Cobra process delivers a 25-fold improvement in heat treatment speed compared to QuantumScape's previous Raptor system while requiring a fraction of the physical space, according to the company1. The ceramic separator forms the foundation of QuantumScape's battery design, keeping the anode and cathode from touching while allowing lithium ions to move between them2.
"By significantly improving throughput and shrinking the equipment footprint, Cobra gives us a powerful path forward for commercializing our next-generation battery technology," said Dr. Siva Sivaram, QuantumScape's CEO1.
The milestone represents years of development work and positions the company for higher-volume production of what it calls B1 sample cells, a step toward eventual commercial manufacturing1.
QuantumScape shares traded at $5.78 in premarket Wednesday, up $1.46 or 33.8% from Tuesday's close of $4.331. Some reports showed the stock climbing as much as 45% during regular trading hours23.
The company maintains a market capitalization of $2.42 billion despite reporting no revenue and a diluted loss per share of $0.91, reflecting its pre-commercial status1. Wall Street analysts maintain a consensus "Hold" rating with an average price target of $4.901.
Volkswagen became QuantumScape's largest automotive shareholder after investing $300 million since 2018 and forming a joint venture aimed at bringing solid-state batteries to market12. The German automaker's PowerCo division confirmed last year that QuantumScape cells achieved more than 1,000 charging cycles while retaining over 95% capacity3.
Solid-state batteries are widely viewed as a potential game-changer for electric vehicles, offering higher energy density and improved safety compared to conventional lithium-ion cells4. However, several companies are racing to overcome manufacturing challenges that have prevented mass production.
"We think the higher range, faster charge times, and inherent safety of QuantumScape's solid-state technology will be a key enabler for the next generation of electrified powertrains," said Jagdeep Singh, QuantumScape's CEO, in a previous statement about the Volkswagen partnership1.
