QuantumScape is becoming a player in the critical mineral race.
The company has announced two new strategic partnerships in recent days.
QuantumScape will update investors with its third-quarter report on Oct. 22.
QuantumScape (NYSE: QS) stock is soaring to start the new trading week. Shares of the solid-state lithium-metal battery maker have been in focus recently due to new production deals. Today's move, however, comes as investors see a macroeconomic picture that makes those deals, and QuantumScape itself, even more important.
QuantumScape stock jumped by over 20% this morning, and still traded up by 16.3% as of 10:25 a.m. ET.
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Image source: QuantumScape.
QuantumScape stock has already been on the move higher recently. In the past two weeks, the maker of next-generation electric vehicle (EV) batteries announced deals that will help commercialize its solid-state lithium-metal battery technology.
Today's gain comes as rare-earth and other critical minerals are caught in a trade spat between the U.S. and China. After China announced stricter export controls on rare-earth metals, President Donald Trump threatened to slap a new 100% tariff on Chinese imports. Trump said China was holding the world "captive" but backed off the angry rhetoric over the weekend.
QuantumScape's solid-state battery uses a lithium-metal anode along with a solid ceramic electrolyte separator that allows the pure lithium-metal anode to provide more energy density for faster charging, longer range, and safer use. Investors in QuantumScape hope it will revolutionize EV batteries.
Critical minerals are being caught in a geopolitical battle, putting QuantumScape in the spotlight. Its battery technology focuses on making lithium a safer and more efficient metal. The company itself has been in the news for recent strategic production agreements with glass and ceramic products company Corning and electronic components maker Murata.
Those agreements put QuantumScape closer to commercializing its technology. That drove investor excitement, helping the stock soar over 70% in the last month. With critical minerals in the spotlight again, more investors are looking at QuantumScape. The company will soon update investors with its third-quarter report coming next week on Oct. 22.
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Howard Smith has positions in QuantumScape. The Motley Fool recommends Corning. The Motley Fool has a disclosure policy.