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QuantumScape vs. SES AI: Which Next-Gen Battery Stock Holds the Edge?
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Key Takeaways
QuantumScape is advancing fully solid-state EV batteries with its new Cobra separator process.
QS has $797.5M in liquidity, Volkswagen backing and funding runway extended into 2029.
SES AI blends lithium-metal batteries with AI, securing $9.3M revenues in 1H25 and ESS market expansion.
QuantumScape Corp. (QS - Free Report) and SES AI Corp. (SES - Free Report) stand out as two noted players in the race to develop next-generation lithium batteries, but are taking different approaches.
QuantumScape is focused on developing fully solid-state batteries for electric vehicles, betting on higher energy density and enhanced safety to power the cars of the future. Meanwhile, SES AI takes a hybrid lithium-metal approach enhanced with artificial intelligence (AI)-driven software, with ambitions that extend beyond EVs into energy storage, drones and robotics.
Its share price performance year to date shows a contrasting picture. While QS has gained 55%, SES has lost 49%. Let’s delve deeper into the fundamentals of both companies to see which could be a better bet on battery tech now.
Image Source: Zacks Investment Research
The Case for QuantumScape
QuantumScape has become one of the most-watched names in the solid-state battery race. The company is betting big on a fully solid-state design, which would deliver lighter batteries that charge faster, last longer and carry much lower safety risks compared to today’s lithium-ion packs. For electric vehicles, that’s the holy grail.
The company’s latest technological advancement, the Cobra separator process, could be the breakthrough needed to move closer to that goal. CEO Siva Sivaram says Cobra is 25 times more productive than its predecessor, Raptor, and 200 times more efficient than what the company managed in early 2023. That kind of jump matters because the key challenge in solid-state has always been scalability. With Cobra, QuantumScape is now preparing its next-generation B1 samples for customers, which are designed to be more scalable and commercially viable. The first field tests are still targeted for 2026.
Backing from Volkswagen’s PowerCo provides QuantumScape not just credibility, but also crucial funding. The expanded collaboration could deliver up to $131 million in milestone-based payments, adding to the $130 million licensing deal already in place. Importantly, the first milestones have already been met, and the payments will start this year. With $797.5 million in liquidity at the end of the second quarter of 2025 and runway now extended into 2029, QuantumScape has more breathing room to refine and scale its technology.
Just as important, the company is no longer only tied to Volkswagen. A new joint development agreement with another unnamed global automaker shows that industry interest is gaining traction. Unlike simple sample shipments, this is a deeper collaboration aimed at commercialization and licensing.
Although QuantumScape is still pre-revenue, the combination of technological progress, extended funding runway, and expanding partnerships makes it one of the most intriguing bets in the battery space.
Image Source: Zacks Investment Research
The Case for SES AI
SES AI is carving a different path in the battery race, blending advanced materials with AI. The company specializes in lithium-metal batteries, which promise higher energy density than today’s lithium-ion cells. But what makes SES stand out is its “All-in on AI” strategy. SES AI has evolved its platform from chatbot to scientist-level research, now linking it with real-world systems like EVs and energy storage. Next, it aims to drive revenue through software, materials, and battery products, positioning itself as an AI-powered battery innovator.
Its Molecular Universe (MU) platform uses AI to discover and optimize new battery materials. In January, SES announced the world’s first battery using an electrolyte material discovered by its Molecular Universe program, aimed at drones and robotics. The latest version, MU-0.5, already has more than 30 enterprise-level trial users, including top OEMs in China, Korea and Japan. This suggests growing validation from the industry.
SES AI is also pushing into the fast-growing energy storage system (ESS) market. The impending acquisition of UZ Energy will expand its foothold in Europe, Australia and Asia. By combining UZ’s hardware and marketing reach with its AI-driven material discovery, SES is positioning itself to grab a slice of a $300 billion ESS opportunity. The deal also enhances Molecular Universe by feeding real-world data back into its AI models, creating a loop of faster improvement.
Financially, SES AI has early momentum. It reported $9.3 million in revenues in the first half of 2025, mainly from contracts with automotive OEMs developing AI-enhanced battery materials. Management expects $15-$25 million in revenues by year-end. Liquidity was $229 million at second-quarter end, with no debt, giving it flexibility to keep investing.
While execution risks are there, SES AI is positioning itself as more than a battery maker. It is building an AI-driven platform that could generate value through software, materials, and hardware.
Image Source: Zacks Investment Research
Verdict: QS Wins Out
Both QuantumScape and SES AI have bold visions in the battery race, but the investment case tilts in QS’ favor. SES is building an AI-driven ecosystem with early revenues and diversified applications, yet execution and scale remain hurdles. SES carries a Zacks Rank #3 (Hold).
From an investment perspective, QuantumScape offers the promise of truly revolutionary battery technology, with potentially massive upside if it can deliver fully solid-state cells that meet automotive standards for reliability, density, safety and scalability. With its Cobra breakthrough, strong funding and expanding partnerships, QuantumScape earns a Zacks Rank #2 (Buy).
Image: Bigstock
QuantumScape vs. SES AI: Which Next-Gen Battery Stock Holds the Edge?
Key Takeaways
QuantumScape Corp. (QS - Free Report) and SES AI Corp. (SES - Free Report) stand out as two noted players in the race to develop next-generation lithium batteries, but are taking different approaches.
QuantumScape is focused on developing fully solid-state batteries for electric vehicles, betting on higher energy density and enhanced safety to power the cars of the future. Meanwhile, SES AI takes a hybrid lithium-metal approach enhanced with artificial intelligence (AI)-driven software, with ambitions that extend beyond EVs into energy storage, drones and robotics.
Its share price performance year to date shows a contrasting picture. While QS has gained 55%, SES has lost 49%. Let’s delve deeper into the fundamentals of both companies to see which could be a better bet on battery tech now.
The Case for QuantumScape
QuantumScape has become one of the most-watched names in the solid-state battery race. The company is betting big on a fully solid-state design, which would deliver lighter batteries that charge faster, last longer and carry much lower safety risks compared to today’s lithium-ion packs. For electric vehicles, that’s the holy grail.
The company’s latest technological advancement, the Cobra separator process, could be the breakthrough needed to move closer to that goal. CEO Siva Sivaram says Cobra is 25 times more productive than its predecessor, Raptor, and 200 times more efficient than what the company managed in early 2023. That kind of jump matters because the key challenge in solid-state has always been scalability. With Cobra, QuantumScape is now preparing its next-generation B1 samples for customers, which are designed to be more scalable and commercially viable. The first field tests are still targeted for 2026.
Backing from Volkswagen’s PowerCo provides QuantumScape not just credibility, but also crucial funding. The expanded collaboration could deliver up to $131 million in milestone-based payments, adding to the $130 million licensing deal already in place. Importantly, the first milestones have already been met, and the payments will start this year. With $797.5 million in liquidity at the end of the second quarter of 2025 and runway now extended into 2029, QuantumScape has more breathing room to refine and scale its technology.
Just as important, the company is no longer only tied to Volkswagen. A new joint development agreement with another unnamed global automaker shows that industry interest is gaining traction. Unlike simple sample shipments, this is a deeper collaboration aimed at commercialization and licensing.
Although QuantumScape is still pre-revenue, the combination of technological progress, extended funding runway, and expanding partnerships makes it one of the most intriguing bets in the battery space.
The Case for SES AI
SES AI is carving a different path in the battery race, blending advanced materials with AI. The company specializes in lithium-metal batteries, which promise higher energy density than today’s lithium-ion cells. But what makes SES stand out is its “All-in on AI” strategy. SES AI has evolved its platform from chatbot to scientist-level research, now linking it with real-world systems like EVs and energy storage. Next, it aims to drive revenue through software, materials, and battery products, positioning itself as an AI-powered battery innovator.
Its Molecular Universe (MU) platform uses AI to discover and optimize new battery materials. In January, SES announced the world’s first battery using an electrolyte material discovered by its Molecular Universe program, aimed at drones and robotics. The latest version, MU-0.5, already has more than 30 enterprise-level trial users, including top OEMs in China, Korea and Japan. This suggests growing validation from the industry.
SES AI is also pushing into the fast-growing energy storage system (ESS) market. The impending acquisition of UZ Energy will expand its foothold in Europe, Australia and Asia. By combining UZ’s hardware and marketing reach with its AI-driven material discovery, SES is positioning itself to grab a slice of a $300 billion ESS opportunity. The deal also enhances Molecular Universe by feeding real-world data back into its AI models, creating a loop of faster improvement.
Financially, SES AI has early momentum. It reported $9.3 million in revenues in the first half of 2025, mainly from contracts with automotive OEMs developing AI-enhanced battery materials. Management expects $15-$25 million in revenues by year-end. Liquidity was $229 million at second-quarter end, with no debt, giving it flexibility to keep investing.
While execution risks are there, SES AI is positioning itself as more than a battery maker. It is building an AI-driven platform that could generate value through software, materials, and hardware.
Verdict: QS Wins Out
Both QuantumScape and SES AI have bold visions in the battery race, but the investment case tilts in QS’ favor. SES is building an AI-driven ecosystem with early revenues and diversified applications, yet execution and scale remain hurdles. SES carries a Zacks Rank #3 (Hold).
From an investment perspective, QuantumScape offers the promise of truly revolutionary battery technology, with potentially massive upside if it can deliver fully solid-state cells that meet automotive standards for reliability, density, safety and scalability. With its Cobra breakthrough, strong funding and expanding partnerships, QuantumScape earns a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here