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QuantumScape Corporation has updated its collaboration agreement with PowerCo SE, Volkswagen Group's battery cell subsidiary, restructuring development milestones and payment terms for its solid-state battery technology. Under the revised agreement, QuantumScape will receive up to $75.4 million from PowerCo over the next two years, focusing on automotive cell development and advancing the QSE-5 Technology. The amendment replaces previous cost reimbursement methods with milestone-based payments linked to battery cell delivery and validation.
Key Points
- NASDAQ: QS
- QuantumScape Battery amended its collaboration agreement with PowerCo SE on July 16, 2026, restructuring the solid-state battery cell development program
- PowerCo will pay QuantumScape a maximum aggregate of $75.4 million over two years, inclusive of prior payments, based on milestone achievements
- The previous Statement of Work No. 1 was terminated and replaced by new terms emphasizing automotive cell development, larger format cells, and future technology roadmap
Updated Collaboration Framework with PowerCo
QuantumScape revealed that its wholly owned subsidiary, QuantumScape Battery Inc., executed an amendment to its Amended and Restated Collaboration Agreement with PowerCo SE on July 16, 2026. PowerCo, fully owned by Volkswagen Group and a significant investor in QuantumScape, will continue joint development, validation, demonstration, and initial commercialization of battery cells based on QuantumScape's QSE-5 Technology under the updated terms.
The original agreement dated July 17, 2025, previously disclosed in a Form 8-K on July 23, 2025, has been revised to prioritize automotive cell development and larger format cells while advancing QuantumScape's technology roadmap. The amendment replaces the prior statement of work and cost reimbursement structure with a milestone-driven payment system over the next two years.
Milestone-Based Payments and Financial Details
The amended agreement introduces a milestone-based payment framework, replacing the earlier cost reimbursement model. QuantumScape will receive payments from PowerCo contingent upon achieving specific milestones, including battery cell delivery and validation. The maximum aggregate payment QuantumScape will receive is $75.4 million, inclusive of amounts already paid.
This payment structure shifts compensation from reimbursing incurred costs to rewarding tangible progress on technical and commercialization objectives. The two-year timeline indicates aligned development and validation schedules between the companies. Outstanding invoices under the original agreement remain payable to QuantumScape.
QSE-5 Technology Transfer and Development Focus
The amendment centers on transferring QuantumScape's QSE-5 solid-state battery technology into cell sizes determined by PowerCo. The collaboration aims to advance this technology toward automotive-scale cell manufacturing and commercialization, emphasizing larger format cells relevant for vehicle integration.
While specific cell sizes and technical performance details are not disclosed, the focus on automotive cell development signals progress beyond lab-scale demonstrations. The amendment does not alter any intellectual property license agreements previously outlined in the July 23, 2025 Form 8-K.
Termination and Replacement of Previous Statement of Work
Statement of Work No. 1, part of the original collaboration, was terminated effective July 16, 2026, and replaced by Statement of Work No. 2 under the amendment. This transition reflects evolving development priorities and a structured approach to managing the multi-year partnership.
The termination concludes one collaboration phase and initiates a new one with updated milestones and deliverables. QuantumScape confirmed that all outstanding obligations invoiced to PowerCo under the original agreement remain due.
Volkswagen Group's Strategic Investment and Role
PowerCo SE, wholly owned by Volkswagen Group—a major investor in QuantumScape—underscores Volkswagen's strategic commitment to solid-state battery technology. This partnership positions Volkswagen to potentially integrate QuantumScape's batteries into its vehicle platforms upon successful development and validation.
The amendment's automotive cell development focus indicates progress toward production applications. However, the filing includes forward-looking statements highlighting risks related to technology development, commercialization, and reliance on Volkswagen and PowerCo.
Forward-Looking Statements and Associated Risks
QuantumScape's disclosure contains forward-looking statements regarding the development, validation, demonstration, and commercialization of its battery technology and the transfer of QSE-5 Technology into PowerCo-determined cell sizes. These statements are based on current expectations but involve significant risks and uncertainties.
Risks include challenges in developing and commercializing solid-state batteries, meeting quality and cost targets, competition, regulatory changes, retention of key personnel, economic conditions, and electric vehicle market demand. QuantumScape disclaims any obligation to update these statements except as required by law.
Exhibit Filing and Amendment Documentation
The full amendment text is attached as Exhibit 10.1, with portions redacted per Item 601 of Regulation S-K to protect sensitive information. The exhibit includes Statement of Work No. 2 outlining technical and deliverable requirements.
The filing was signed by Michael McCarthy, Chief Legal Officer and Head of Corporate Development at QuantumScape, on July 22, 2026. The amendment was executed on July 16, 2026. QuantumScape's Class A Common Stock trades on Nasdaq under the ticker QS, and the company is not classified as an emerging growth company.
Impact on Solid-State Battery Commercialization Efforts
This amendment refines QuantumScape's partnership with Volkswagen's battery subsidiary, signaling progress in solid-state battery development. The milestone-based payment model and automotive cell focus suggest advancing readiness for manufacturing. The $75.4 million payment commitment reflects the substantial investment required for automotive-scale technology validation.
Investors will monitor QuantumScape's milestone achievements, as success could confirm commercial viability and strengthen ties with Volkswagen. Conversely, delays or missed milestones could affect payments and raise concerns about commercialization timelines. The two-year term indicates key developments may emerge within this period.
Financial and Strategic Outlook
The amended agreement secures milestone-based revenue for QuantumScape over two years, supporting ongoing solid-state battery development. The $75.4 million maximum payment from PowerCo, combined with Volkswagen Group's equity stake, demonstrates strong automotive industry backing.
Nonetheless, the filing's risk disclosures highlight uncertainties in achieving production-scale performance, cost targets, and market acceptance. Competition from alternative battery technologies and regulatory shifts also pose challenges. Investors should weigh these factors when assessing QuantumScape's future prospects amid the amended collaboration.
