11 Best Lithium and Battery Stocks To Invest In

5. QuantumScape Corporation (NYSE:QS)

Number of Hedge Fund Holders: 22

QuantumScape Corporation (NYSE:QS) focuses on developing solid-state lithium-metal battery technology for electric vehicles. Its solid-state batteries aim to address limitations in conventional lithium-ion technology, offering higher energy density, faster charging, and better safety.

The company has partnered with Volkswagen and is also working with other automotive manufacturers to explore opportunities in stationary storage and consumer electronics. The technology is also designed for cost efficiency, potentially offering lower manufacturing costs compared to traditional lithium-ion batteries by eliminating anode host materials.

In Q3, QuantumScape (NYSE:QS) reached an important milestone by producing small batches of its first B Sample cells for the QSE-5 battery, which are now being shipped for testing by automotive customers. The QSE-5 is a solid-state lithium metal battery that does not use an anode. It can charge quickly, from 10% to 80% in just a few minutes, has a high energy density of 844 watt-hours per liter, and performs well in terms of energy density, power, charging speed, low-temperature operation, and safety. This achievement marks the start of making the technology ready for mass production, with ongoing testing, feedback, and improvements planned for the coming months.

QuantumScape (NYSE:QS) also signed a significant agreement with PowerCo, Volkswagen Group’s battery manufacturer, to mass-produce the QSE-5 at gigawatt-hour scale. The agreement includes collaboration on industrialization, with PowerCo contributing skilled personnel and resources, and QuantumScape receiving a $130 million royalty prepayment. The company ended the quarter with $841 million in liquidity, and the PowerCo deal extended its cash runway into 2028.