Key Developments in Battery Production and Strategic Partnerships

QuantumScape’s share price surged sharply today, with the stock rising by over 20% in the morning session and holding a gain of 16.3% by 10:25 a.m. ET. This jump comes amid news that the company has moved a major internal production technology, known as “Cobra,” into its baseline manufacturing.
For investors and observers of battery technology, the move suggests QuantumScape is pressing closer to scalable production, a key test for its future in electric-vehicle batteries.

The Technical Trigger

QuantumScape announced that its Cobra separator process has been fully integrated into baseline cell manufacturing as of June 2025. This marks a critical shift: Cobra is now the standard production method, not just a pilot technique. Compared to the older “Raptor” process, Cobra accelerates the heat-treatment phase for ceramic separator films by roughly 25×, while using less equipment footprint.

That improvement promises to cut cost, increase throughput, and make gigawatt-scale output more practical. QuantumScape first disclosed the development of Cobra equipment in 2024, ahead of plans to integrate it in 2025. 

With the shift into baseline production now complete, the company suggests the path toward higher volume sample cells (B1 and beyond) is clearer. In effect, Cobra may solve one of solid-state battery’s hardest scaling problems,  making the separator layer at volume without prohibitive cost or complexity.

Catalysts & Partnerships Fueling the Surge

Beyond Cobra’s technical milestone, several external catalysts and alliances are adding momentum to investor sentiment.

One is the new partnership with Murata Manufacturing, focused on scaling production of ceramic separators. That collaboration sent the stock up about 7% in premarket trading.
Murata brings years of ceramics and electronics manufacturing expertise, which can help QuantumScape expand its supply chain and improve yield.

Another driver is prior collaboration with Corning, announced just before the Cobra news. That deal reinforced confidence in QuantumScape’s ability to partner with established glass and ceramics firms.  QuantumScape’s licensing deal with Volkswagen’s battery arm, PowerCo, remains a linchpin in long-term strategy. Under that contract, PowerCo can use QuantumScape’s technology and support production scaling. 

Volkswagen holds a significant equity stake in QuantumScape, deepening alignment between battery development and automaking interests. Together, these alliances help validate the technical progress, spread risk, and signal to markets that QuantumScape is not acting alone in scaling its innovation.

Market Sentiment, Risks & Doubts

Investor enthusiasm is evident: QuantumScape’s stock is up over 200% year to date, far outpacing broader indexes. Options activity and call volume are also rising, which may amplify short-term moves.

Yet important risks remain. QuantumScape is still pre-revenue, it has not recorded meaningful commercial sales to date. Analysts caution that execution at scale is hard. One firm, Baird, described the company’s surge as promising but flagged that “significant milestones are still ahead.” 

Another concern is valuation. Some analysts believe current prices already reflect high expectations, leaving little margin for error. Competition is fierce. Other companies (Toyota, CATL, etc.) are also racing toward solid-state batteries. QuantumScape’s success depends on staying ahead technically and execution-wise.

Finally, even with milestone execution, delays or quality problems in manufacturing could undercut investor confidence quickly.

Conclusion

In the coming months, several developments will help determine whether today’s stock jump is sustainable. First, Q2 2025 results will be an important signal. Although revenues may remain minimal, investors will closely watch remarks on production metrics, sample cell outputs, and progress toward commercialization.

Second, the delivery and performance of B1 or next-generation cells will matter. If cells meet specification under real testing, confidence will rise. Third, further partnerships or licensing deals with automakers and materials firms will signal stronger ecosystem support.

Fourth, cash burn, liquidity, and dilution risk remain key. QuantumScape had $860.3 million in cash as of Q1 2025. How far that funds operations through scale-up will be scrutinized. Lastly, technical risks, yield rates, and competition will stay in focus. If a rival delivers solid-state batteries more cheaply or faster, that could shift momentum.

In summary, today’s rally reflects real progress in scaling battery production. Still, the path ahead is narrow and demanding. Success depends on consistently meeting technical and manufacturing milestones while navigating financial and market challenges.