08:10 AM EDT, 07/11/2024 (MT Newswires) -- QuantumScape ( QS ) has entered into a non-exclusive license agreement with Volkswagen's battery unit PowerCo to industrialize QuantumScape's ( QS ) solid-state lithium-metal battery technology, the companies said Thursday.

Under the agreement, QuantumScape ( QS ) will grant PowerCo a license to mass produce battery cells based on QuantumScape's ( QS ) technology platform upon satisfactory technical progress and certain royalty payments, the companies said.

PowerCo can produce up to 40 gigawatt-hours annually, with an option to increase production to 80 GWh per year for around one million vehicles, the companies added.

The new agreement replaces a previous joint venture between Volkswagen and QuantumScape ( QS ) to co-manufacture batteries.

QuantumScape ( QS ) shares were climbing more than 40% in recent premarket activity.

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