After a Scorpion Capital report claimed QuantumScape was a “pump-and-dump SPAC scam,” the solid-state battery startup could not seem to care less. It released on May 14 that it is in the process of selecting where it will produce with Volkswagen. Both companies currently have a preference for Salzgitter, a city that was mentioned more than one at Volkswagen Power Day.

Salzgitter will be where the German carmaker will have its first 40 GWh gigafactory in Europe. It already houses Volkswagen’s first recycling plant, which started to operate in January. Apparently, it will be the company’s manufacturing headquarters for batteries. The recycling plant could source raw materials to the solid-state cell plant in a much easier way.

Volkswagen Group Components Battery Recycling Plant In Salzgitter

The joint venture between QuantumScape and Volkswagen will be called QS-1. Initially, it will have a 1 GWh production capacity. However, the goal is to make it reach a 20 GWh production scale. 

It is not clear if Volkwagen included that production capacity in Salzgitter’s total of 40 GWh or if it will be in addition to the 40 GWh capacity it will already have. Considering QS-1 will apparently be just in the same city but not the same plant, we’re more inclined to the second hypothesis.

The QS-1 will follow QS-0, which is an independent enterprise from QuantumScape. The solid-state battery startup expects to be able to produce 200,000 cells. Its goal is not to be a manufacturing marvel but rather to supply engineering cells for prototypes. QuantumScape hopes to provide cells for a few hundred test vehicles each year with it for all manufacturers interested in them.

As Jagdeep Singh told Sandy Munro, Volkswagen is pretty aware that the deal with QuantumScape is not exclusive. Being an investor in the startup, the German automaker will also benefit from any success it has with its competitors.

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