Shares of battery technology start-up
jumping as more automakers are interested in its revolutionary lithium-ion battery technology.
stock (ticker: QS) rose about 10% in early trading. The
Dow Jones Industrial Average
rose by 0.4% and 0.9% respectively.
New business makes investors enthusiastic. Company said Tuesday it signed an agreement to partner with another “top 10 by global revenue” automaker.
(VOW.Germany) is a car manufacturer with which Quantum already collaborates.
also has a significant stake in QuantumScape, of approximately 20%. The second automaker was not identified by name and QuantumScape was not immediately available for comment.
The new automaker will evaluate Quantum’s lithium anode, solid-state EV batteries. Solid state refers to the fact that QuantumScape’s technology does not have a liquid electrolyte that carries electrical charge in a battery cell. Solid-state batteries promise better safety, range, cost and charge times for the EV industry. They’re a panacea, but no one has made a car-grade solid-state battery yet.
Quantum is trying and planning to ship car batteries for testing and integration into a real vehicle by 2025.
Between now and then, QuantumScape stock will likely trade on news like Tuesday’s. It will also rise and fall on the company’s ability to achieve development milestones, such as successfully building larger batteries that could one day form the basis for an EV battery pack.
A few other publicly traded companies are also working on better EV batteries.
Decarbonization Plus Acquisition III
(DCRC) is a special purpose acquisition company merging with: Solid power. That company is valued at about $1.9 billion. And
Ivanhoe Capital Acquisition
(IVAN) is a SPAC merging with a battery company TO BE; that company is valued at about $3.3 billion.
The market is excited about solid-state batteries, but it’s hard to value stocks without a sale. QuantumScape is worth about $10 billion, making it valuable to global auto suppliers, and more valuable than its battery peers. Still, the stock is down more than 80% from its 52-week high of $132.73 reached in December.
Year-to-date, QuantumScape stocks are down more than 70% and are down about 13% in the past three months. However, the stock rebounded with an increase of about 16% in the past month.
Write to Al Root at email@example.com