Germany's Volkswagen Group has concluded a licensing deal with US company QuantumScape that will allow VW to produce solid-state batteries for up to a million electric cars a year, VW battery subsidiary PowerCo announced on Thursday.
PowerCo did not say where production would be sited, nor when it would start. It currently makes batteries in Salzgitter in Germany, Valencia in Spain and in Canada.
The technology, which promises greater range, lower weight and quicker charging, is not yet ready for series production.
"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," VW technology executive Thomas Schmall said.
"We are committed to driving the industry forward to ensure that our electric vehicles set the benchmark for excellence and sustainability," he added.
PowerCo chief executive Frank Blome said: "QuantumScape’s technology is poised to enter a pivotal stage where PowerCo's specialized expertise, resources and global factories can help facilitate the transition to industrial-scale production."
The deal provides for PowerCo to manufacture up to 40 gigawatt-hours per year using QuantumScape technology, with the option to expand to 80 gigawatt-hours – enough to outfit around a million vehicles per year, according to VW.
Solid-state batteries are seen as the next major step in battery development. There is no fluid electrolyte as there is in the lithium-ion batteries that currently dominate the market.
VW and QuantumScape have been working on the technology for years, with VW the largest stakeholder in the company. A previous scheme to produce the battery in a joint venture has now been replaced by the licensing arrangement.