Volkswagen’s Revolutionary Leap: Solid-State Batteries for 1 Million EVs Annually with QuantumScape Partnership

Volkswagen's PowerCo battery division and solid-state battery technology company QuantumScape revealed on Thursday their joint plan for the large-scale production and commercialization of solid-state lithium-metal batteries for use in electric vehicles.

By entering into a non-exclusive licensing deal, PowerCo has secured the rights to produce up to 40 gigawatt-hours of battery cells each year utilizing technology from a solid-state company. They also have the opportunity to increase production to 80 gigawatt-hours, which could power about one million electric vehicles every year.

Ceramic barrier from QuantumScape

QuantumScape's technology employs ceramic dividers in its solid-state batteries, enabling the use of a pure lithium-metal anode, which boosts both energy and power capacity as well as accelerates charging times. While QuantumScape has already demonstrated the feasibility of this technology in lab settings and on a smaller scale, the real test has been ramping up production to a level where these batteries can be reliably used in vehicles over an extended period.

The companies have responded by stating they will merge their key strengths through a "joint workforce effort" to hasten the increase in production and the incorporation of these cells into VW's cars.

The company did not reveal where they might produce solid-state batteries in the future or provide a schedule for such plans.

Volkswagen's battery cell plant in Salz

In July 2022, Volkswagen initiated construction of its inaugural electric vehicle battery mega-plant while concurrently establishing its PowerCo. division to manage this new venture. Located in Salzgitter, Germany, this plant acts as the central point for Volkswagen's worldwide battery operations and marks the launch of what the company has termed a "worldwide battery initiative." This initiative is characterized by market-specific localized battery manufacturing and a comprehensive in-house battery supply network, with the goal of reducing battery cell expenses by half.

The manufacturing plant in Germany has begun production of a novel prismatic cell design which is slated to be incorporated into the automaker's forthcoming Scalable Systems Platform (SSP) tailored for electric vehicles, set to launch in 2026. This new cell format is anticipated to be featured in 80% of the Volkswagen Group's electric vehicles by the end of this decade.

VW's Energy Event – Advanced Battery Technology

During the 2021 Power Day event, Volkswagen highlighted that the ultimate goal in the transition to electric vehicles is the adoption of solid-state battery technology. However, they anticipate that this technology won't be available until 2025 or beyond, with initial quantities being limited. Volkswagen also pointed out the capability of this technology to allow for 80% recharges in a rapid 12 minutes.

For over ten years, Volkswagen has identified solid-state batteries and QuantumScape as key components of its strategic vision for the future. The company has been in partnership with QuantumScape since 2012. Meanwhile, Toyota is advancing its solid-state battery technology through a joint venture with Panasonic, and anticipates the technology will be market-ready by the years 2027 or 2028. Honda views these batteries as a pathway to creating cost-effective compact electric vehicles, and Nissan is also pursuing the development of its proprietary solid-state batteries, recognizing the possibility of revolutionary changes in electric vehicle design and packaging as a result.

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