QuantumScape Corporation (NYSE:QS) has entered into a significant collaboration agreement with PowerCo, Volkswagen Group's battery cell subsidiary, aimed at industrializing solid-state lithium-metal battery technology for automotive use.

The partnership will focus on QuantumScape’s QSE-5 technology.

The agreement includes a $130 million pre-paid royalty from PowerCo, aimed at facilitating this collaboration.

This partnership represents a significant step towards bringing high-energy density, solid-state batteries to the automotive market.