QuantumScape solid state battery company KCAC

The SPAC with ticker KCAC, is merging with QuantumScape, the Bill Gates and Volkswagen backed next gen battery company. QuantumScape has the co founder of Tesla JB Straubel on the board. They’re attempting to commercialise solid state batteries, where the electrolyte between the anode and cathode is solid as opposed to liquid.

The battery they’re developing should have much better energy density than current electric vehicle batteries.

At $10 a share the merger would value QS at 3.3bn, so if you bought today at $20 you’re paying ~$6.6Bn. They don’t expect to start selling the product for some years yet.

It will be interesting what Tesla comes with on battery day, if they have achieved much higher energy density using a different approach, it would undermine the solid state approach, if they are using the same approach or fail to show a significant improvement, that would bode well for QS.