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Volkswagen announces new agreement set to drive groundbreaking transformation of EV technology — here's how

"We want to redefine the future of battery technology."

"We want to redefine the future of battery technology."

Photo Credit: Volkswagen Group

Electric cars are about to get a whole lot more eco-friendly thanks to Volkswagen and its battery manufacturer PowerCo. 

In early July, Volkswagen Group announced PowerCo's major agreement with QuantumScape, which produces solid-state batteries for EVs. 

Solid-state batteries can replace the lithium-ion batteries used in phones, laptops, and EVs. Instead of using liquid electrolyte solution, solid-state batteries use solid electrolytes. This allows the battery to hold a greater charge over time. However, experts have said they are not used as often due in part to how difficult and expensive they can be to make on a large scale, per Vox. 

Volkswagen is looking to change all that with this new agreement. 




QuantumScape will be using its technology in its partnership with PowerCo to build these more eco-friendly batteries on a global scale. With a non-exclusive license, the companies plan to manufacture up to 40 gigawatt-hours every year. They will also have the option to double their production, equipping roughly 1 million vehicles with the batteries annually. 

By replacing liquid electrolytes, these batteries are generally safer for drivers while requiring less charging time. While lithium-ion battery fires are rare, they can be devastating. Additionally, solid-state batteries have a smaller environmental impact and require fewer materials — particularly some of the rare minerals that are mined for lithium-ion batteries. As Teslarati notes, a number of automakers are eyeing a transition to these types of batteries. 

Dr. Siva Sivaram, the CEO and president of QuantumScape, has said the agreement is a major step in the effort to increase the use of solid-state batteries in EVs. Sivaram said PowerCo's expertise in manufacturing combined with its eco-friendly technology will serve as a blueprint for the industry. 

"We want to redefine the future of battery technology, bringing the most sustainable and cutting-edge battery cells to our customers," Frank Blome, CEO of PowerCo, agreed in a statement

"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," Blome added. "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."

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