Honda Partners with QuantumScape for Battery Development Agreement
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: stocktwits
- Joint Development Plan: Honda's joint research agreement with QuantumScape focuses on developing solid-state batteries and production processes, which is expected to drive technological advancements in the electric vehicle sector to meet rising battery demands.
- Technical Evaluation Advantage: Prior to the agreement, Honda conducted thorough due diligence on QuantumScape's battery platform, revealing unique performance advantages that bolster confidence in the collaboration between the two companies.
- Positive Market Reaction: Following the signing of the agreement, QuantumScape's stock surged nearly 8%, making it one of the top ten trending tickers on Stocktwits, reflecting optimistic market expectations regarding the partnership.
- Growing EV Demand: As the global adoption of electric vehicles increases and the demand for advanced battery solutions rises, QuantumScape's technology is poised to play a crucial role in future energy solutions, particularly in the context of extreme weather and high energy consumption from AI data centers.
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Analyst Views on QS
Wall Street analysts forecast QS stock price to rise
8 Analyst Rating
0 Buy
6 Hold
2 Sell
Hold
Current: 6.900
Low
2.50
Averages
11.29
High
16.00
Current: 6.900
Low
2.50
Averages
11.29
High
16.00
About QS
QuantumScape Corporation is developing solid-state lithium-metal battery technology for electric vehicles (EVs) and other applications. The Company’s solid-state lithium-metal battery technology is designed to offer energy density, faster charging, and enhanced safety. Its battery cells have none of the host materials used in conventional anodes. The Company's cells are anode-free in that they are manufactured without anodes in a discharged state. It has demonstrated a solid-state separator for lithium-metal batteries capable of resisting dendrite formation at higher power densities, such as those required for automotive applications and fast charging, for at least 800 cycles at around 25 degrees Celsius. The Company's solid-state electrolyte-separator is a dense, entirely inorganic ceramic. The Company's solid-state battery technology has applicability in other markets, including stationary storage and consumer electronics, data centers, defense, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
QuantumScape's Battery Commercialization Progress Stalls
- Commercialization Goals Missed: QuantumScape initially aimed to commercialize its first solid-state batteries by 2024, but slow progress has seen its stock plummet from a peak of $131.67 to around $7, undermining investor confidence and casting uncertainty on its future prospects.
- Technological Advantages and Collaboration Model: The QSE-5 battery, co-developed with Volkswagen, boasts an energy density of 844 Wh/L and can charge from 10% to 80% in under 15 minutes; however, the company has shifted from a joint production model to a licensing approach in 2024, planning to license its technology to Volkswagen's battery subsidiary PowerCo and other automakers.
- Financial Outlook and Market Potential: Analysts project QuantumScape's revenue will grow from zero in 2026 to $51.2 million in 2027 and $98.6 million in 2028, although its market cap appears overvalued at 43 times its 2028 sales, yet the solid-state battery market is expected to grow at a 47.57% CAGR from 2026 to 2034.
- Long-Term Growth Potential: If QuantumScape maintains its first-mover advantage, revenue could reach $804 million by 2036, with a potential market cap of $24.1 billion, indicating that while a $10,000 investment may not yield a million, it could still outperform the market.
See More
QuantumScape Partners with Honda to Advance Solid-State Battery Technology
- Partnership Progress: Honda's R&D division is collaborating with QuantumScape to advance its solid-state battery platform for electric vehicles, resulting in a 12.9% stock price increase post-announcement, reflecting investor confidence in the technology.
- Market Potential: QuantumScape's solid-state battery technology could revolutionize the EV battery market, and despite fierce competition, the partnership with Honda adds significant confidence for commercialization, attracting considerable investor interest.
- Executive Praise: Honda's R&D COO praised QuantumScape's technology, highlighting its potential to add value across various applications, including automotive, which further enhances market optimism regarding QuantumScape's future development.
- Risk Advisory: While the market is optimistic about QuantumScape's prospects, investors should remain aware of its speculative nature and allocate investments accordingly to mitigate potential uncertainties.
See More
Honda Partners with QuantumScape for Battery Development Agreement
- Joint Development Plan: Honda's joint research agreement with QuantumScape focuses on developing solid-state batteries and production processes, which is expected to drive technological advancements in the electric vehicle sector to meet rising battery demands.
- Technical Evaluation Advantage: Prior to the agreement, Honda conducted thorough due diligence on QuantumScape's battery platform, revealing unique performance advantages that bolster confidence in the collaboration between the two companies.
- Positive Market Reaction: Following the signing of the agreement, QuantumScape's stock surged nearly 8%, making it one of the top ten trending tickers on Stocktwits, reflecting optimistic market expectations regarding the partnership.
- Growing EV Demand: As the global adoption of electric vehicles increases and the demand for advanced battery solutions rises, QuantumScape's technology is poised to play a crucial role in future energy solutions, particularly in the context of extreme weather and high energy consumption from AI data centers.
See More
QuantumScape Partners with Honda for Battery Research
- Joint Agreement Signed: QuantumScape has entered into a joint research agreement with Honda R&D, aimed at advancing the solid-state battery platform through the combined expertise of both parties, which is expected to significantly enhance the market competitiveness of battery technology.
- Successful Technology Evaluation: Honda's completion of a technology evaluation agreement with QuantumScape involved an in-depth study of its solid-state battery technology, demonstrating unique advantages that lay a solid foundation for long-term collaboration.
- Multi-Year Plan: The joint program will include a multi-year plan focused on solid-state battery development and manufacturing processes, aimed at accelerating the commercialization of new technologies to meet the growing demand in the electric vehicle market.
- Increased Industry Confidence: Honda's involvement not only boosts the market recognition of QuantumScape's technology but also reflects confidence in the potential of solid-state lithium-metal batteries in terms of safety and energy density, potentially driving broader application scenarios.
See More
QuantumScape's Slow Progress in Battery Commercialization
- Stock Volatility: Since going public via SPAC in November 2020, QuantumScape's stock opened at $24.80 and soared to $131.67 within a month, but currently trades around $7, indicating a significant decline in investor confidence.
- Technological Edge: The QSE-5 solid-state battery, co-developed with Volkswagen, boasts an energy density of 844 Wh/L and can charge from 10% to 80% in under 15 minutes, providing a competitive advantage in the electric vehicle market.
- Business Model Shift: Initially planning to manufacture batteries in partnership with Volkswagen, QuantumScape has pivoted to a licensing model in 2024, allowing it to license its technology to Volkswagen's battery subsidiary PowerCo and other automakers, thereby generating a recurring stream of higher-margin revenue.
- Future Outlook: Analysts project QuantumScape's revenue to grow from zero in 2026 to $51.2 million in 2027 and $98.6 million in 2028; despite a high market valuation, maintaining its first-mover advantage could lead to substantial sales growth over the next decade.
See More
Investment Comparison: Corning vs. QuantumScape
- Corning's Market Dominance: Corning leads the specialized glass and fiber optics market, achieving nearly $15.6 billion in revenue for FY 2025, a significant increase from $13.1 billion the previous year, reflecting strong demand for high-tech displays and communication networks, thereby reinforcing its critical role in digital communication infrastructure.
- QuantumScape's Technical Challenges: QuantumScape focuses on developing solid-state lithium-metal batteries, and despite its significant technological potential, it generated $0.0 in revenue for FY 2025 with a net loss of approximately $435.1 million, highlighting the substantial financial pressure and technical hurdles it faces during its R&D phase.
- Risk Analysis: Corning faces customer concentration risk, with three major clients accounting for 61% of its automotive sales, while QuantumScape must overcome production scale and technical feasibility issues, competing against established manufacturers like Tesla, which adds market uncertainty.
- Investment Choice Consideration: Corning, with its 175-year history and stable profitability, is suitable for risk-averse investors, while QuantumScape appeals to those willing to take on high risks for potential high returns, requiring investors to make choices based on their risk tolerance.
See More
QuantumScape's Battery Commercialization Progress Stalls
- Commercialization Goals Missed: QuantumScape initially aimed to commercialize its first solid-state batteries by 2024, but slow progress has seen its stock plummet from a peak of $131.67 to around $7, undermining investor confidence and casting uncertainty on its future prospects.
- Technological Advantages and Collaboration Model: The QSE-5 battery, co-developed with Volkswagen, boasts an energy density of 844 Wh/L and can charge from 10% to 80% in under 15 minutes; however, the company has shifted from a joint production model to a licensing approach in 2024, planning to license its technology to Volkswagen's battery subsidiary PowerCo and other automakers.
- Financial Outlook and Market Potential: Analysts project QuantumScape's revenue will grow from zero in 2026 to $51.2 million in 2027 and $98.6 million in 2028, although its market cap appears overvalued at 43 times its 2028 sales, yet the solid-state battery market is expected to grow at a 47.57% CAGR from 2026 to 2034.
- Long-Term Growth Potential: If QuantumScape maintains its first-mover advantage, revenue could reach $804 million by 2036, with a potential market cap of $24.1 billion, indicating that while a $10,000 investment may not yield a million, it could still outperform the market.
See More
QuantumScape Partners with Honda to Advance Solid-State Battery Technology
- Partnership Progress: Honda's R&D division is collaborating with QuantumScape to advance its solid-state battery platform for electric vehicles, resulting in a 12.9% stock price increase post-announcement, reflecting investor confidence in the technology.
- Market Potential: QuantumScape's solid-state battery technology could revolutionize the EV battery market, and despite fierce competition, the partnership with Honda adds significant confidence for commercialization, attracting considerable investor interest.
- Executive Praise: Honda's R&D COO praised QuantumScape's technology, highlighting its potential to add value across various applications, including automotive, which further enhances market optimism regarding QuantumScape's future development.
- Risk Advisory: While the market is optimistic about QuantumScape's prospects, investors should remain aware of its speculative nature and allocate investments accordingly to mitigate potential uncertainties.
See More
Honda Partners with QuantumScape for Battery Development Agreement
- Joint Development Plan: Honda's joint research agreement with QuantumScape focuses on developing solid-state batteries and production processes, which is expected to drive technological advancements in the electric vehicle sector to meet rising battery demands.
- Technical Evaluation Advantage: Prior to the agreement, Honda conducted thorough due diligence on QuantumScape's battery platform, revealing unique performance advantages that bolster confidence in the collaboration between the two companies.
- Positive Market Reaction: Following the signing of the agreement, QuantumScape's stock surged nearly 8%, making it one of the top ten trending tickers on Stocktwits, reflecting optimistic market expectations regarding the partnership.
- Growing EV Demand: As the global adoption of electric vehicles increases and the demand for advanced battery solutions rises, QuantumScape's technology is poised to play a crucial role in future energy solutions, particularly in the context of extreme weather and high energy consumption from AI data centers.
See More
QuantumScape Partners with Honda for Battery Research
- Joint Agreement Signed: QuantumScape has entered into a joint research agreement with Honda R&D, aimed at advancing the solid-state battery platform through the combined expertise of both parties, which is expected to significantly enhance the market competitiveness of battery technology.
- Successful Technology Evaluation: Honda's completion of a technology evaluation agreement with QuantumScape involved an in-depth study of its solid-state battery technology, demonstrating unique advantages that lay a solid foundation for long-term collaboration.
- Multi-Year Plan: The joint program will include a multi-year plan focused on solid-state battery development and manufacturing processes, aimed at accelerating the commercialization of new technologies to meet the growing demand in the electric vehicle market.
- Increased Industry Confidence: Honda's involvement not only boosts the market recognition of QuantumScape's technology but also reflects confidence in the potential of solid-state lithium-metal batteries in terms of safety and energy density, potentially driving broader application scenarios.
See More
QuantumScape's Slow Progress in Battery Commercialization
- Stock Volatility: Since going public via SPAC in November 2020, QuantumScape's stock opened at $24.80 and soared to $131.67 within a month, but currently trades around $7, indicating a significant decline in investor confidence.
- Technological Edge: The QSE-5 solid-state battery, co-developed with Volkswagen, boasts an energy density of 844 Wh/L and can charge from 10% to 80% in under 15 minutes, providing a competitive advantage in the electric vehicle market.
- Business Model Shift: Initially planning to manufacture batteries in partnership with Volkswagen, QuantumScape has pivoted to a licensing model in 2024, allowing it to license its technology to Volkswagen's battery subsidiary PowerCo and other automakers, thereby generating a recurring stream of higher-margin revenue.
- Future Outlook: Analysts project QuantumScape's revenue to grow from zero in 2026 to $51.2 million in 2027 and $98.6 million in 2028; despite a high market valuation, maintaining its first-mover advantage could lead to substantial sales growth over the next decade.
See More
Investment Comparison: Corning vs. QuantumScape
- Corning's Market Dominance: Corning leads the specialized glass and fiber optics market, achieving nearly $15.6 billion in revenue for FY 2025, a significant increase from $13.1 billion the previous year, reflecting strong demand for high-tech displays and communication networks, thereby reinforcing its critical role in digital communication infrastructure.
- QuantumScape's Technical Challenges: QuantumScape focuses on developing solid-state lithium-metal batteries, and despite its significant technological potential, it generated $0.0 in revenue for FY 2025 with a net loss of approximately $435.1 million, highlighting the substantial financial pressure and technical hurdles it faces during its R&D phase.
- Risk Analysis: Corning faces customer concentration risk, with three major clients accounting for 61% of its automotive sales, while QuantumScape must overcome production scale and technical feasibility issues, competing against established manufacturers like Tesla, which adds market uncertainty.
- Investment Choice Consideration: Corning, with its 175-year history and stable profitability, is suitable for risk-averse investors, while QuantumScape appeals to those willing to take on high risks for potential high returns, requiring investors to make choices based on their risk tolerance.
See More
