Battery developer QuantumScape kicked off its debut trading on the New York Stock Exchange on Friday after a special purpose acquisitions company (SPAC) consolidation. The company trades under the symbol 'QS.' Shares of QuantumScape rallied almost 50 percent in pre-market sessions.
The San Jose-headquartered company reported completion of its merger with Kensington Capital Acquisition (NYSE: KCAC) as it targets to commercialize its lithium metal batteries that it claims has greater range, a speedier charging time and are safer and more cost-efficient compared to conventional technologies used by its competitors.
QuantumScape is founded a decade ago by Jagdeep Singh, a computer scientist who is also co-founder of Infinera Corporation, a major telecom parts supplier, and Tim Holme, a Stanford University-educated mechanical engineer.
QuantumScape has innovated cell prototypes that impressed many prominent companies resulting in more than $700 million in private investments, including $300 million from Volkswagen. The Bill Gates Investment Fund also supports the battery developer.
In June 2020, Volkswagen boosted its shares in Quantum by $200 million. Former Tesla chief technology officer JB Straubel is currently a member of the board at QuantumScape. Continental, the German auto supplier, China's SAIC Motor, and multiple venture capital companies also back QuantumScape.
QuantumScape claims to have shelled out more than $300 million in research and development to roll out a commercially viable lithium-metal solid-state battery. The company is close to overcoming its dendrite quandary by employing a new highly classified material called the "LLZO."
According to QuantumScape founder and chief operating officer Jagdeep Singh, "this transaction allows QuantumScape to fund the development and commercialization of our OEM-validated battery technology," Financial Buzz quoted the CEO as saying.
The SPAC deal has brought in more than $1 billion for QuantumScape that it intends to use to bring its battery technology to mass production. In an interview with Yahoo Finance, Singh said the company is really at the cusp for the start of "a major transformation" into vehicles' electrification.
"We're incredibly thrilled to complete our business merger with QuantumScape and provide the company with significant capital and automotive guidance to fast-track its business plan," Justin Mirro, Chairman, and CEO of Kensington, said, as reported by Financial Buzz.
The adoption of electric vehicles has become the global standard in the auto sector. QuantumScape is currently well-positioned to emerge as a major supplier of solid-state batteries for the next generation of electric powertrains, the company said.