Silicon Valley EV battery developer QuantumScape debuts on Wall Street after merger with Kensington Capital – FutureCar.com
Author: Eric Walz
Silicon Valley-based solid-state battery developer QuantumScape is now officially a publicly traded company after its New York Stock Exchange (NYSE) debut on Friday.
The company, headquartered in San Jose, Calif., Is the latest company to look to Wall Street for capital raising this year, after entering into a reverse merger deal with Kensington Capital Acquisition Corp. (NYSE: KCAC), a special purpose acquisition company. (SPAC).
The deal, which was first announced in September, saw QuantumScape become a publicly traded company, targeting an enterprise value of over $ 3 billion.
The company’s shares trade on the New York Stock Exchange under the symbol “QS”.
The transaction will generate approximately $ 680 million in net proceeds for QuantumScape, including through a fully committed $ 500 million private equity investment (PIPE). The funds from the transaction are expected to fully support the new company until the start of production in the second half of 2024.
“Today marks an important milestone in the evolution of our business,” said Jagdeep Singh, Founder and CEO of QuantumScape. “This transaction allows QuantumScape to fund the development and commercialization of our OEM-validated battery technology as we look forward to playing our part in the electrification of the automotive powertrain, helping to transform one of the world’s largest industries around the world and fostering a cleaner future for all. ”
QuantumScape has been working on solid-state EV batteries for the past decade. The company was founded in 2011 and holds around 200 patents and patent applications related to solid-state battery technology. The company’s mission is to revolutionize energy storage to enable a sustainable future.
In June 2018, German automaker Volkswagen invested $ 100 million in a joint venture with QuantumScape for the industrial production of solid-state batteries. At the time, the investment made Volkswagen’s largest auto shareholder QuantumScape.
Volkswagen continued its initial investment in June this year when the automaker announced an additional investment of up to $ 200 million, just two months before QuantumScape announced plans to go public in a merger with Kensington. Capital.
The objective of the investment was to further develop solid-state batteries for future Volkswagen electric vehicles. Two years ago, Volkswagen successfully tested QuantumScape’s early-stage solid-state battery sample cells operating at automotive power rates, which the company said was a “first-in-class” achievement. ‘industry’.
“The solid-state battery will mark a turning point for electric mobility,” said Axel Heinrich, head of research for the Volkswagen Group in June.
QuantumScape lithium-metal solid-state batteries are designed to be safer, and to provide longer runtime, faster charge times and improved life, than today’s conventional lithium-ion battery technology. ‘hui.
A solid-state battery about the same size as a standard EV battery can achieve a range comparable to that of a combustion engine vehicle. However, developments in solid-state battery technology have evolved at a slow pace. To date, no other battery manufacturer has been able to achieve the level of performance sufficient for series production. But the technology is promising.
“We are making technological advancements with our partner QuantumScape,” said Thomas Schmall, chairman of the board of directors of Volkswagen Group Components in June, the unit responsible for developing EV batteries for the automaker. Volkswagen says solid-state batteries would more than double the range of its electric vehicles.
QuantumScape’s deal with Kensington Capital follows other high-profile reverse mergers this year to raise new capital, including startup of hydrogen fuel cell truck Nikola Motor Company, manufacturer of electric trucks Lordstown Engines and lidar manufacturer Velodyne. The three companies have all gone public under reverse merger agreements with SPACs.
QuantumScape is also backed by Microsoft-founded Bill Gates, both personally and through his company Breakthrough Energy Ventures, a venture capital firm founded by Gates in 2015 to help accelerate innovation in the field of energy. ‘durable energy.