11:21 AM EDT, 07/11/2024 (MT Newswires) -- QuantumScape's ( QS ) licensing agreement with Volkswagen's PowerCo marks a "positive shift" for a company looking to accelerate the commercialization of its solid-state QSE-5 battery cell technology, Truist Securities said in a note Thursday.

QuantumScape ( QS ) earlier in the day announced the non-exclusive license agreement under which PowerCo will mass produce battery cells based on QuantumScape's ( QS ) technology platform upon satisfactory technical progress and certain royalty payments.

With the collaboration, QuantumScape ( QS ) is taking a "more capital-light strategy" in pushing for the commercial scale-up of its lithium-metal battery technology, while PowerCo's commercialization activities are expected to provide QuantumScape ( QS ) with "meaningful" capital resources, Truist said.

"We're overall positive on this announcement, with clearer visibility/potentially quicker timeline for commercialization of QSE-5, along with further validation of the technology and incremental cash injection/line of sight to future revenue generation," the brokerage said.

Truist said it is awaiting further details around production timelines, as well as the technical and other milestones that need to be cleared before the grant of a license to PowerCo.

Shares of QuantumScape ( QS ) jumped more than 29% in recent trading.

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