200

Patents

issued or pending

15

Minutes

the time it will take for QS’s batteries to charge

10

Years

of R&D in solid-state lithium-metal batteries

View Our Analysis

The Path to Drawdown: Energy Storage

On the path to electrify everything, the world needs more renewable sources of energy. But what’s also needed are energy storage systems and batteries. Because the two dominant sources of renewable energy - solar and wind - are intermittent (they only generate electricity when the sun is shining or the wind is blowing), their supply often don’t match their demand.

The conventional way of supplying power when the demand for electricity peaks is for utility companies to fire up “peaker” plants. But most peakers run on natural gas and are highly polluting.

A wider adoption of utility-scale and distributed energy storage systems and batteries is the solution. Utility-scale energy storage is the use of technologies and practices to store energy on a large scale, often managed by utility, industrial and power companies. Distributed storage systems are smaller in scale and use standalone batteries and electric vehicles (EVs) to store energy. Distributed systems are usually managed at the level of residential and commercial buildings.

Neither of these solutions directly help reduce greenhouse gas emissions, but they both facilitate the development of more renewable energy sources and ultimately smooth the transition in the energy system.

While Project Drawdown doesn’t model the growth of energy storage so as to avoid double-counting with renewable energy solutions, it’s clear that their production and adoption need to accelerate, and their cost needs to fall around the world will accelerate the shift to a zero-emission grid.

What We Want to See Improve

Scale Production

We’re enthusiastic about QS’s next generation battery that promises to make EVs more attractive to consumers. We’re also excited about their partnership with Volkswagen and eagerly wait for the production of their solid-state batteries to be scaled up.

Establish Circular Economy Processes

In the journey to electrifying everything, we need more batteries. But having more batteries in the world means that more companies need to have processes in place for recycling and reusing those batteries once they reach the end of their life. We urge QuantumScape to become a circular economy company by establishing those processes.

Disclose Sustainability Metrics

As QuantumScape grows, we want to see them enhance their transparency around sustainability. In particular, we’d like to know the GHG emissions, the sources of energy consumed, and the amount and type of waste generated from the production of their batteries. These metrics should be included in an annual sustainability report and made easily accessible to stakeholders.

Related Battery Stocks in the Climate Index

View All Climate Index Stocks →

Allocated Company Description

0.78%

QuantumScape Corporation (QS)

QuantumScape makes solid-state lithium-ion batteries for electric vehicles. Their battery is lighter and charges faster, key to making EVs more attractive

0.30%

Livent Corporation (LTHM)

Livent is one of the largest lithium producers in the world. Lithium is the key metal in making batteries for electric vehicles and energy storage.

0.19%

Stem, Inc. (STEM)

Stem makes energy storage solutions that optimize energy use through the use of AI. Energy storage is the key to integrating more renewables into the grid

0.03%

Eos Energy Enterprises, Inc. (EOSE)

Eos makes stationary batteries and energy storage systems that can make renewable power more reliable and attractive

0.03%

Romeo Power, Inc. (RMO)

Romeo Power makes lithium-ion battery modules and packs for commercial EVs. High-quality batteries are critical for electrifying transportation

0.02%

CBAK Energy Technology, Inc. (CBAT)

CBAK makes lithium-ion battery packs that can be used in many electric vehicles, tools and energy storage applications, a key to electrifying everything

0.02%

Flux Power Holdings, Inc (FLUX)

Flux Power makes batteries for industrial forklifts and other utility vehicles. Electrifying these vehicles is a key component of solving climate change.

0.02%

Kandi Technologies Group Inc. (KNDI)

Kandi Technologies mass produces entry-level EVs for Chinese consumers and quickly swaps EV batteries. Both are critical for making EVs attractive.

0.02%

KULR Technology Group, Inc. (KULR)

KULR sells thermal management technologies that are used in the lithium-ion batteries to ensure they stay within safe operating temperatures.

0.02%

Westwater Resources, Inc. (WWR)

Westwater Resources mines and purified graphite materials, which is a key component in battery construction. They’re helping expand energy storage

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