QuantumScape Soars 21% on World's First Solid-State Battery Real-World Vehicle Demo

TradingKey - On Monday, solid-state battery developer QuantumScape (NYSE: QS) saw its shares surge over 21%, hitting a one-month high.

At the Munich IAA Motor Show unveiled on Monday, QuantumScape and PowerCo, the battery company under Volkswagen Group, jointly unveiled the world's first demonstration of a QS solid-state lithium-metal battery-powered electric vehicle — a modified Ducati V21L race bike equipped with QuantumScape's QSE-5 solid-state battery produced using the company's Cobra process.

This represents a historic transition of solid-state battery technology from laboratory testing to real-world application. They have been proven in a working motorcycle, demonstrating that QuantumScape's technology can meet real-world electric vehicle demands.

According to reports, the QSE-5 solid-state battery used in the demonstration vehicle demonstrated impressive performance metrics, with an energy density of 844Wh/L, supporting charging from 10% to 80% within 12 minutes, and capable of sustained 10C discharge.

The company integrated its proprietary Cobra separator manufacturing process into the baseline production line in June 2025, and the battery separator for the demonstration vehicle was produced using this process. The Cobra process is designed for gigawatt-scale mass production and is considered a core component for promoting the adoption of solid-state batteries in the electric vehicle industry, laying a critical foundation for future mass production.

Meanwhile, QuantumScape's strategic partnership with PowerCo continues to deepen. The non-exclusive strategic cooperation and licensing agreement signed by both parties recently indicates that PowerCo will make payments to QuantumScape over the next two years based on technological progress, helping the company deliver prototype cells at higher production volumes and facilitating the transfer of new technology to global markets.

PowerCo CEO Frank Blome emphasized at Monday's press conference.The electric vehicle revolution is the biggest transformation in the history of the automotive industry. Solid-state batteries will redefine the possibilities for high-performance and premium vehicles, and today's historic demonstration is just the beginning. We are combining QuantumScape's world-class battery scientists with PowerCo's manufacturing expertise to bring this disruptive solid-state battery technology to the global market as quickly as possible.

As a representative of next-generation battery technology, solid-state batteries are considered the ideal replacement for existing lithium-ion batteries due to their higher safety, longer lifespan, and faster charging speeds.

"We are now firmly in the commercialization phase of our company," executives said in July.

Meanwhile, the latest financial data shows that QuantumScape's Q2 2025 earnings report revealed an EPS of -$0.20, better than the expected -$0.21, with GAAP net loss for the first half narrowing 5.94% year-over-year to $229 million. These figures reflect that while achieving technological breakthroughs, the company has effectively controlled its losses, further strengthening its commercialization confidence.