QuantumScape, a 10 year old electric vehicle start-up in Silicon Valley, has agreed on a SPAC (Special Purpose Acquisition Company) deal with Kensington Capital Acquisition Corp and plans on going public with a valuation of $3.3 billion.
QuantumScape, backed by Bill Gates and Volkswagen, is a developer of solid-state batteries. Solid-state batteries have major advantages over traditional lithium ion batteries because they have higher energy density, last longer, and are safer. However, they are extremely expensive.
If QuantumScape is able to successfully lower the cost to manufacture these batteries, they would be providing a huge advantage to electric vehicle makers as consumers decide whether or not to make the switch to electric cars. But as of right now - the path forward seems very difficult.