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QuantumScape is developing a solid-state battery that could revolutionize the electric car industry.
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Recent manufacturing upgrades may help produce batteries on a commercial scale.
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In September, the company presented the first demonstration of a solid-state battery of its kind.
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10 Stocks We Like More Than QuantumScape ›
It’s getting harder and harder to understand where electric vehicle (EV) history is headed. Some say that demand is fading, while others argue that an all-electric future is just around the corner.
But one challenge that both camps agree on is battery technology. Indeed, between mining raw materials and building factories, current EV batteries are expensive. They are also cumbersome, prone to fire, slow to recharge, and have a limited range.
If the transportation is all electric, it needs a better battery. QuantumScape (NYSE: QS) believes it has created one: a solid-state battery that charges faster and can last longer than a conventional lithium-ion battery.
The company has several prototypes, but is struggling to sell the solid-state battery. However, recent developments in production could change that and lead to growth in these stocks over the next five years.
In the past, QuantumScape’s solid-state technology has worked in labs, but has always been difficult to produce on a commercial scale. This has made investors despair that the company will ever produce enough to become very profitable.
That all changed in mid-summer when QuantumScape announced a major upgrade to its manufacturing technology.
in 2025 during the second quarter conference call, management announced the successful installation of a Cobra solids separator on its prototype production line. The upgrade could significantly improve performance — about 25 times that of previous equipment — and ultimately help mass-produce the batteries.
This update was followed by the first real solid-state battery demo in September. Although the battery wasn’t in a car – it was in a motorcycle – he proved that his technology could exist outside of the lab in real-world applications.
The company isn’t generating revenue, but it has enough cash to see it through at least 2029. It could also have a big advantage if it could commercialize its solid-state battery over others.
The stock is risky, so conservative investors may want to stay away. But for aggressive investors betting on EV adoption, owning it could pay off over the next five years.