QuantumScape Stock: Battery Maker Will Soar 10X By 2030

[Editor’s note: “The Battery Maker Set to Soar 10X-Plus by 2030” was previously published in February 2022. It has since been updated to include the most relevant information available.]

When it comes to stocks with huge long-term upside potential, few look more appealing than QuantumScape (QS).

As a leading manufacturer of solid-state batteries, QS is developing a new generation of batteries. These next-generation batteries will allow electric vehicles to drive thousands of miles on a single charge. Also, the QuantumScape trailer could enable fast loading (in just a few minutes). The most exciting of all? It is an “eternal battery”.

That’s a big problem.

Electric vehicles are the future of transportation. That is a foregone conclusion. But today, the average electric car only gets about 250 miles of range. And for that, it takes more than an hour to fully charge. These truths impede the ability of electric vehicles to replace gasoline-powered cars.

To solve these problems, we need a new type of battery. Current lithium ion batteries are depleted. With current battery technology, we simply cannot create electric vehicles that drive thousands of miles or recharge in minutes.

We need a new solution.

And QuantumScape is in the lead.

Introducing the future of batteries

While everyone is so excited about the EV Revolution, the honest truth is that it won’t go mainstream until we make better batteries.

To understand why, we need to take a quick trip back to chemistry class.

Batteries comprise three things: a cathode, an anode, and an electrolyte. They work by promoting the flow of ions between the cathode and the anode through the electrolyte.
An image representing the composition of a battery (anode, cathode, electrolyte) showing how the ions move throughout the cell

Conventional lithium-ion batteries are based on the chemistry of a liquid battery. That is, they comprise a solid cathode and anode. The connection of the two is a liquid electrolyte solution.

And these batteries have worked great for years. But due to the limitations of liquid electrolytes, they have reached their power cell density limit. So if we want our phones, watches, and electric cars to last longer and charge faster, we need a battery unlike anything we’ve seen before.

Insert the solid state battery.

With solid state batteries, the name pretty much says it all. Take the liquid electrolyte solution in conventional batteries. Compress it into a solid. Create a small, hyper-compact battery. And since it doesn’t waste space, it lasts much longer and charges much faster.

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Of course, the chemistry implications of solid-state batteries are huge.

Solid-state batteries could be the key to keeping our phones powered for days. They could allow our smartwatches to fully charge in seconds! And yes, SSBs can allow electric cars to drive thousands of miles without recharging.

That is why connoisseurs call them “eternal batteries”. It’s the critical technology that can propel the EV Revolution into its next phase: supercharged growth.

QuantumScape has discovered the impossible

Until recently, making solid-state batteries was the stuff of science fiction. The science was too prohibitively complex.

Then a team of genius Stanford professors, scientists, and a few tech executives came together to simplify it. And 12 years later, QuantumScape has basically solved the solid-state battery problem.

The biggest problem with solid-state batteries is something called “dendrites.” These are tiny cracks that form in the solid electrolyte during charging and recharging. Eventually, they get so big that they short-circuit the battery.

Therefore, the breakthrough in solid-state batteries lies in developing a solid electrolyte material that is resistant to dendrites. And QuantumScape has cracked this code.

In late 2021, the company showed that its Forever Battery worked in 4-layer formats up to 800 charge cycles. A quarter later, he scaled the successful results to 10-layer batteries up to 800 cycles. And earlier this year, QuantumScape successfully demonstrated its 16-layer battery’s successful results in over 500 cycles.

In other words, QuantumScape’s solid-state battery breakthrough is proving to work even as the company increases battery size.

If this trend continues, QuantumScape will soon commercialize effective solid-state batteries that are large enough to be used in automobiles.

Huge Upside Potential in QuantumScape Stock

The battery of the future is coming, and QuantumScape will be the company that will make and sell that battery.

And that means the upside potential for QuantumScape stock is huge.

By 2030, we estimate that around 75 million new passenger cars will be sold worldwide. We believe that about half of those cars will be electric vehicles. Of these, we believe that around 10% will be equipped with solid-state batteries. Assuming QuantumScape grabs roughly half of the market for solid-state batteries in electric vehicles, and sells those batteries for around $7,000 each, the company could be looking at more than $13 billion in revenue by 2030.

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Assuming target operating margins of 25% and a tax rate of 20%, that implies potential profits by 2030 of about $2.6 billion. A P/E multiple of 20X implies a possible future valuation of QuantumScape of $55 BILLION, which is almost 15X higher than the current market capitalization.

That is amazing. So, if you’re looking to buy and hold a growth stock that could make you really rich, QuantumScape stock should be at the top of your list.

Buy this stock. Hold him. Wait for the world to change.

The Final Word on QuantumScape Stock

Solid-state batteries are the future and represent one of the most promising technological advances of the 2020s.

In the years to come, this emerging technology will change the electric vehicle industry forever. And indeed, it will forever change the entire world of electronics.

Some of the biggest stock market winners in the 2020s will be manufacturers of solid-state batteries.

QuantumScape stock projects are one of those mega-winners. But you won’t be alone. And, in fact, it will not be the biggest winner in this space.

In fact, we see this as the beginning of a massive Energy Transition.

Even the largest company in the world, Apple (AAPL), you get on board with your own autonomous electric vehicle.

Yes, the creator of the iPhone, the iPad, the Mac and the Apple Watch is moving towards the Energy Transition by launching its own EV.

Considering how previous Apple innovations have changed paradigms, the Apple Car will be a game changer for electric vehicles.

We are even more convinced that the companies that supply critical components for Apple Car will make fortunes for their investors.

we have identified one of those critical parts suppliers. And its shares are only trading at $3.

To prepare you, I have just prepared a presentation on the Energy Transition. In it, I talk about the next big Apple product launch and small supplier stocks that could skyrocket 40-fold as the Apple Car takes the world by storm.

The energy revolution is here. it’s time to plug in.

As of the date of publication, Luke Lango did not have (directly or indirectly) any position in the securities mentioned in this article.

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