• The agreement was struck only after Honda completed its due diligence on the company’s QS battery platform.
• The joint program includes a multi-year plan focused on developing solid-state batteries and determining the production process.
• The demand for advanced battery solutions is driven by the increased adoption of electric vehicles worldwide to reduce fossil fuel emissions.

Shares of QuantumScape Corporation (QS) surged on Thursday after the company signed a joint research agreement with Japan’s Honda, where both companies will leverage each other’s expertise in battery technology.

At the time of writing, QS stock was up nearly 8%, and was among the top ten trending tickers on Stocktwits.

A Joint Effort Toward Battery Development

The companies will work together under a multi-year plan to develop a solid-state battery and determine the production process for it. The potential battery will find use cases in industries including automotive.

The agreement was struck only after Honda completed its due diligence on the company’s QS battery platform, including a thorough hands-on technical study, benchmarking, and stress testing.

“QS technology demonstrated compelling and unique advantages during our evaluation,” said Atsushi Ogawa, Chief Operating Officer, Research Center of Excellence, Honda R&D Co., Ltd.

“Honda is a leading global automaker renowned for its engineering excellence and product quality across automotive and other applications worldwide, and its evaluation represents one of the most rigorous assessments of our technology to date,” said CEO QuantumScape CEO Dr. Siva Sivaram. 

Why This Matters

The demand for advanced battery solutions comes amid increased adoption of electric vehicles worldwide to reduce fossil fuel emissions, and in the backdrop of record-high energy consumption this year, largely driven by AI data centers and extreme weather conditions.

Fueling the momentum is also the excitement around space exploration, which has created an opportunity for battery companies to provide energy solutions in various capacities, as access to traditional power grids will be impossible.

What Do Retail Traders Think About QS?

On Stocktwits, retail sentiment toward QS stock turned ‘neutral’ from bearish over the last 24 hours.

One user on the platform cheered the Honda-related news and expects QuantumScape to share a significant update by summer.

Another user wrote that Honda is the perfect partner for the company.

QS stock is down more than 28% so far this year but has surged by more than 76% over the last 12 months.

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