QuantumScape Stock Jumps 37% on Solid-State Battery Breakthrough

San Jose, California — QuantumScape’s stock surged by 37% in pre-market trading on June 25, 2025, following the announcement of a major breakthrough in its solid-state lithium-metal battery technology. The company integrated its ‘Cobra’ separator process into baseline production, a development seen as crucial for the commercialization of safer and faster-charging electric vehicle (EV) batteries.

The milestone has generated significant excitement among investors, with the company boasting a market cap of £3.2 billion ($4.3 billion) and an important partnership with Volkswagen’s PowerCo.

According to CEO Siva Sivaram, the Cobra separator is designed to revolutionize battery manufacturing efficiency. He stated, ‘This exemplifies our progress in scaling solid-state battery production.’ The new process allows for reduced equipment size and increases production speed by 25 times compared to the earlier ‘Raptor’ process.

QuantumScape’s anode-free battery design claims an impressive energy density of 800 Wh/L and can charge from 10% to 80% in just 12 minutes, which could significantly enhance the range and safety of electric vehicles. This innovation positions QuantumScape at the forefront of the £80 billion ($109 billion) EV battery market.

The company is on track for gigawatt-scale battery production, thanks to its partnership with PowerCo, allowing the production of enough batteries for 500,000 EVs annually, with an option to double output. This partnership was previously supported by a £104 million ($130 million) royalty prepayment.

Despite the stock increase, QuantumScape remains in the R&D phase, reporting a £104 million ($142.4 million) operating loss for Q3 2024, along with £680 million ($931 million) in liquidity to fund operations well into 2028. Analysts have also noted the company faces high volatility, with a beta of 2.48.

In a recent post on social media platform X, one user called QuantumScape’s technology a ‘game changer for cheaper, safer, longer-range EVs’ while cautioning that it is still ‘not production-ready.’

With backing from significant partners and a strong cash runway, QuantumScape is positioned to push the boundaries of EV battery technology. However, challenges in scaling production and strong competition from rivals including Nissan may impact its trajectory in the fast-evolving battery market.