In Barron’s, Al Root reports on QuantumScape, a lithium battery start-up that has helped push the industry’s valuation to new highs. He writes:
The lithium-battery industry is now more valuable than Exxon Mobil, which pioneered the technology back in the 1970s.
The valuation of QuantumScape (ticker: QS) pushed the battery makers over the top. Its stock is up more than 300% over the past three months, valuing the start-up maker of solid-state electric-vehicle batteries at more than $30 billion.
Exxon (XOM) stock has staged a comeback from earlier in the year, with a gain of about 12% over the past three months, but shares are still down 39% year to date. It is trailing far behind EV stocks, as well as the S&P 500and Dow Jones Industrial Average.
Investors are excited because the type of batteries Quantum works on have the potential to transform the EV industry. Quantum’s batteries can charge to 80% full in about 15 minutes and pack more energy per unit of volume than existing technology. That means fewer batteries with less weight can achieve a required range per charge.
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