Volkswagen Inks Deal to Mass-Produce Solid-State Batteries for 1 Million EVs

Volkswagen has signed a deal to mass-produce solid-state battery technology for its future lineup of electric vehicles.

The technology comes from California-based battery company QuantumScape, which will license its formula to PowerCo, Volkswagen's internal battery division. The two will then work together to finalize a "product that will be scaled-up for integration in a Volkswagen Group vehicle series," QuantumScape says.

The agreement has been in the works since at least January 2024, when PowerCo successfully tested a sample battery cell from QuantumScape. The results exceeded expectations, showing 95% range retention over 300,000 miles. In comparison, EV batteries today tend to lose around 20% of their range over a much shorter distance. Solid-state batteries could also bring much higher electric range, faster charging, and improved safety.

“We have been collaborating and testing QuantumScape prototype cells for years now and we are looking forward to bringing this technology of the future into series production," says PowerCo CEO Frank Blome.

The batteries aren't quite ready for mass production and still require further testing. Volkswagen can only turn on the production line upon "satisfactory technical progress" and a $130 million prepayment of royalties to QuantumScape. If everything goes according to plan, Volkswagen will have enough QuantumScape cells to power up to a million EVs annually.

“Electric vehicles are the future of mobility, and this agreement with QuantumScape will ensure the Volkswagen Group’s global fleet has access to this groundbreaking battery technology for years to come,” says Thomas Schmall, Volkswagen Group Board Member for Technology.

New battery technology, combined with a recently announced software partnership with Rivian, could be what Volkswagen needs to accelerate its EV sales, which flattened in Q2, according to InsideEVs, although plug-in hybrid vehicle sales were up 17%.

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Other EV makers could also license QuantumScape's tech in the future, as the deal is not exclusive to Volkswagen. However, Volkswagen is first in line and owns a 17% stake in QuantumScape, Reuters reports.

Toyota has also reportedly signed a mass production deal for solid-state batteries, coming as soon as 2028, as have Mercedes and Honda. At the same time, most major EV automakers are testing a variety of next-gen chemistries, such as silicon batteries. The technology in development could help revolutionize EV driving by the end of this decade, though there are still production hurdles to overcome.

About Emily Dreibelbis

Senior Reporter

I'm the expert at PCMag for all things electric vehicles and AI. I've written hundreds of articles on these topics, including product reviews, daily news, CEO interviews, and deeply reported features. I also cover other topics within the tech industry, keeping a pulse on what technologies are coming down the pipe that could shape how we live and work.

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