QuantumScape, a solid-state battery developer, recently released its quarterly fiscal report and shareholder letter for Q2 2025. The company has made significant progress, including an expanded agreement with Volkswagen Group’s battery business, PowerCo, and a new joint development agreement with another OEM.
In the latest update, QuantumScape announced that its proprietary Cobra solid-state separator process has been fully integrated into its production processes, achieving a key milestone for 2025. This advancement allows for gigawatt-level solid-state cell production, paving the way for higher-volume production of its flagship QSE-5 cells.
The Cobra breakthrough also supports QuantumScape’s licensing model with PowerCo, as part of an expanded agreement detailed in the Q2 2025 report. PowerCo, a division of Volkswagen Group, will contribute an additional $131 million to QuantumScape over the next two years, on top of the original $130 million commitment. This funding will support the production of QSE-5 cells on QuantumScape’s pilot line in San Jose.
Additionally, QuantumScape announced a new joint development agreement with another major global automotive OEM, building on an existing relationship. The specific OEM was not disclosed, but this partnership signifies further progress in the solid-state battery technology space.
Looking ahead, QuantumScape aims to install higher-volume cell production equipment to facilitate scaled production of solid-state cells. The company plans to ship more prototype cells for testing and aims to begin field testing in 2026. This real-world vehicle application will provide valuable feedback for QuantumScape as it continues to advance its technology.
Overall, QuantumScape ended Q2 2025 with a strong financial position, with $797.5 million in liquidity and an extended cash runway through 2029. The company continues to focus on cost reduction initiatives and process improvements to streamline operations and drive towards its goal of delivering mass-produced energy-dense solid-state batteries to the market.
For the latest news on solid-state batteries and electric mobility, stay tuned to Electrek for updates.
