Shares of QuantumScape (QS) - Get QUANTUMSCAPE Report jumped on Tuesday after the battery producer said it partnered with a second top 10 automaker, measured by global revenue, to evaluate prototypes of the company's solid-state batteries.
The car company, which wasn't identified, has evaluated QuantumScape's early cells and agreed to purchase 10 MWh of capacity from the company's pre-pilot line facility.
They'll be included in pre-series vehicles, subject to them meeting intermediate milestones, QuantumScape said.
The automaker expects the intermediate milestones, which consist of more advanced prototypes of QuantumScape's cells, to be delivered before the company's QS-0 battery begins production in 2023.
QuantumScape was a big winner in Tuesday's choppy market waters. The stock of the San Jose, Calif., company at last check climbed 14% to $23.65.
The shares are up more than 30% over the past 12 months, but down from the stock's all-time high above $108 reached in late December.
In July, the company's shares jumped after it reported positive results from the tests on a new battery cell.
“While we need to produce and test many more such cells to collect data and statistics on their performance and reliability, this is an extremely important result," QuantumScape said in a statement at the time.
The results demonstrate "we are able to make 10-layer cells with similar early capacity retention and cycling behavior to what we’ve shown for single- and four-layer cells.”
In April, QuantumScape said German automaker Volkswagen VWAGY agreed to invest another $100 million in the company. The funding round was the second and final one under a May 2020 agreement between the two companies.