QuantumScape leaps 18% after the EV battery startup clears a key development hurdle

• Shares of EV battery startup QuantumScape jumped as much as 18% on Wednesday.
• The company reported clearing a key hurdle in the development of its battery cell technology.
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Shares of QuantumScape jumped as much as 18% on Wednesday to $59.80 a share after the electric vehicle battery maker reported clearing a key hurdle in the development of its technology.

The company is attempting to develop solid-state lithium-metal batteries for electric vehicles, a feat several EV startups are currently working towards. In its first quarterly financial report, QuantumScape said it was able to produce multi layer battery cells, a crucial step of progress towards the final product.

"While there is still a lot of work to be done and we could encounter new challenges as we increase our layer count, this is an incredibly important result, and we are excited to have this so early in the year," CEO Jagdeep Singh said in a letter to investors that was part of the company's first quarterly financial report.

The next step in developing the solid-state batteries will be to increase the number of layers in the multilayer cells while increasing the size of the layers.

QuantumScape said that achieving these milestones in 2021 will enable the company to deliver the multilayer battery cells next year. To further scale-up production QuantumScape will be building a facility in San Jose, California. The EV battery-maker still needs to secure a long-term lease for the building, but says it expects the facility to be producing cells by 2023.

Volkswagen has committed to using QuantumScape's battery technology in its electric vehicle. QuantumScape said that the new facility will allow it to provide early battery cells to Volkswagen.