Wolfsburg, GERMANY (dpa-AFX) - 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produce the battery in a joint venture has now been replaced by the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.


Copyright dpa