QuantumScape Corp saw its shares trade more than 20% higher in pre-market trading on Thursday after the company disclosed a joint research agreement with Honda targeting solid-state battery development.
The arrangement is described as a multi-year program that will concentrate on advancing solid-state battery technology as well as the manufacturing processes needed to produce such batteries. QuantumScape said the agreement comes after Honda completed a prior technology evaluation agreement that included a technical study of QuantumScape's solid-state platform and a competitive benchmarking exercise across standard technical tests.
Representatives from Honda emphasized the outcome of their evaluation. Atsushi Ogawa, Chief Operating Officer, Research Center of Excellence at Honda R&D Co., Ltd., a subsidiary of Honda Motor Co., Ltd., commented: "QS technology demonstrated compelling and unique advantages during our evaluation. We see potential for QS technology to add value across a range of applications, including automotive, and we are excited to move forward into the next phase of our partnership."
QuantumScape's leadership framed Honda's assessment as a significant technical review. Dr. Siva Sivaram, CEO and President of QuantumScape, said Honda's evaluation represented "one of the most rigorous assessments of our technology to date."
The announcement did not include additional commercial terms or a timeline for deliverables beyond noting the multi-year scope of the joint research program. The public market reaction in pre-market trading reflected investor attention to the collaboration and the outcome of Honda's prior benchmarking of the technology.
What the agreement covers
- Joint, multi-year research focused on solid-state battery development.
- Work on related manufacturing processes needed to produce the technology.
- Follow-up to Honda's technical study and competitive benchmarking of QuantumScape's platform.
The statements from both companies underline that Honda completed a formal evaluation and that both parties expect to proceed into the next phase of collaboration. Beyond the quoted remarks and the outline of the program's focus, the announcement did not provide further details on timing, specific project milestones, or commercial arrangements.