Battery start-up QuantumScape is playing host to a battery technology day on Tuesday. Quantum’s technology could be game changing for the electric-vehicle industry and for the company’s stock.
But the technology and the company are new, so investors have to get up to speed fast so they don’t miss the next big thing, or pour money into an idea that won’t pan out.
Solid-state batteries, as the name implies, don’t use liquid electrolyte inside the cells. An electrolyte is what the battery current passes through. In a typical AAA battery, the electrolyte is a potassium hydroxide and water solution.
Solid-state batteries are a possible game-changer for EVs because they can potentially pack more energy per unit volume, charge faster and be safer than the lithium-ion batteries used today in electric vehicles.
The company became publicly traded recently after completing its merger with Kensington Capital Acquisition.
The deal was well received by investors. Quantum shares are up almost 90% over the past three months. The S&P 500 has gained 8% over the same span. The Dow Jones Industrial Average is up about 7.4%.
At a recent price of $42.50 a share, Quantum stock is valued at roughly $19 billion. That makes it one of the top five most valuable automotive suppliers in the U.S. QuantumScape, however, doesn’t sell anything yet and doesn’t expect to have significant sales until 2027.
About The Company
QuantumScape was founded in 2010 by Stanford University scientists Jagdeep Singh, Fritz Prinz and Tim Holme to develop what are known as solid-state batteries for electric vehicles and other industrial uses.
