QuantumScape (NYSE: QS) wants to revolutionize the electric vehicle (EV) battery charging experience. 2024 has marked a slowdown in the pace of growth for EV sales. Many consumers are hesitant to transition to electric cars due to charging concerns.
But QuantumScape’s solid-state battery technology could address range anxiety and reinvigorate interest in EVs. Today, the company’s stock jumped as much as 10% after it announced another step toward commercializing its batteries.
QuantumScape predicts a transformative year
QuantumScape is working to address what has become a big source of hesitancy from potential EV buyers. Currently, lithium-ion batteries used for EVs use graphite anodes. While that works for the use case, it also has the limitation of low energy density, which limits the battery range.
The company is working to commercialize a higher energy density EV battery that would likely go a long way toward addressing range anxiety. Today, QuantumScape said it has begun to ship the initial trial version of a prototype battery cell to customers. That was one major goal the company had set for 2024. Another is to begin low volume production of its first full commercial product, the QSE-5 battery cell.
QuantumScape has been working to integrate improvements to its solid-state technology since it began the qualification process with potential automotive customers more than one year ago. The company says the newest iteration now being shipped provides “an opportunity for customers to test key performance parameters and prototype-level reliability.”
For investors comfortable speculating on its ultimate success, today’s news was another welcome milestone. This year could be a transformative one for the company and its goals. But investors should still allocate funds realizing there remains plenty of risk that it won’t ultimately succeed or be the first to market.
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Howard Smith has positions in QuantumScape. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
QuantumScape Is Starting to Deliver on Its Lofty 2024 Goals was originally published by The Motley Fool
Source: finance.yahoo.com