Battery stocks may not sound exciting….
But with recovering electric vehicle sales, and big demand for batteries, stocks like QuantumScape (QS) are pushing higher.
For one, “Batteries are crucial in the global economy transition with their ability to maintain a balance between supply and demand within the power system,” according to Know How. “In the use of renewable energy sources, batteries enable utility providers to gather extra electricity and store it for periods when the solar panels and wind turbines are not working the most efficiently (the sun is not shining or wind is not blowing).”
Two, the Biden Administration said that up to $3.5 billion from the Bipartisan Infrastructure Law would be used to boost production of advanced batteries and battery materials.
Now we’re learning that stocks, like QS is making substantial progress with batteries.
On Thursday, the company and Volkswagen’s battery company, PowerCo, entered into a “licensing agreement that will allow PowerCo to ‘industrialize,’ or mass produce, QuantumScape’s next-generation solid-state EV batteries,” says Barron’s.
Even better, analysts at Baird said the announcement was important for several reasons. First, it “provides a pathway to commercialization, (2) provides royalty payments, (3) provides [a] proof point on [the] progress of technology.”
With that news, shares of QS gapped from about $5.50 to $7.95.
With further progress, we wouldn’t be surprised to see QS double from here.