Shares of electric vehicle (EV) battery maker QuantumScape (NYSE:QS) climbed about 8% yesterday and are up another 2% today. The rally in QS stock has been sparked by an announcement from the firm that it has started to deliver battery cell prototypes to its customers.
By carrying out these deliveries, QuantumScape has fulfilled one of its goals for 2024 — and excited QS stock investors in the process.
QS Stock and the Prototype Deliveries
QuantumScape, which is developing solid-state EV batteries, disclosed yesterday that it has begun shipping prototypes of its Alpha-2 prototype battery cells to a number of customers. The company called the prototypes a “significant milestone” on its path to providing customers with the QSE-5 battery.
According to the firm, the Alpha-2 battery cells are “more energy-dense” than a previous prototype it had shipped. The Alpha-2’s “higher-loading cathodes […] and more efficient packaging” optimize the “materials and space within the cell,” explained QuantumScape.
Importantly, the cells also demonstrate the “main functionality” that will ultimately be included in the upcoming QSE-5 commercial battery.
A Potential Wrinkle
Back in January, QuantumScape partner Volkswagen (OTCMKTS:VWAGY) reported that QuantumScape’s battery had eclipsed the automaker’s requirements, as the product “achieved more than 1,000 charging cycles with still more than 95 percent capacity.” As a result, the battery could support “more than 500,000 kilometers without any noticeable loss of range.”
However, in news that could bode badly for QS stock, Volkswagen has also reportedly held talks with a competing EV battery maker, France-based Blue Solutions. According to Reuters, the talks involved the French firm potentially providing batteries for Volkswagen cars, per an unnamed source. Blue Solutions currently sells batteries to Daimler (OTCMKTS:DTRUY) for use in its electric buses. Like Volkswagen, Daimler is also based in Germany.
On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
