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Will U.S. Lithium Push Give QuantumScape Batteries a Big Boost?

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Key Takeaways

  • U.S. government backing strengthens domestic lithium supply, reducing geopolitical risks.
  • QuantumScape's solid-state batteries rely on lithium-metal, benefiting from stable access.
  • Lower costs and secured supply could support QS' long-term growth and commercialization.

The U.S. government’s recent push to secure domestic lithium supply could be a major tailwind for QuantumScape Corp. (QS - Free Report) , one of the most promising solid-state battery developers in the electric vehicle (EV) space.

Last week, the Department of Energy announced plans to take a 5% stake in Lithium Americas (LAC - Free Report) and another 5% in its Thacker Pass lithium project in Nevada. The move highlights Washington’s commitment to building a reliable domestic supply of critical minerals and reducing dependence on China, which currently dominates global lithium production.

Thacker Pass, a joint venture with General Motors (GM - Free Report) , is expected to become one of North America’s largest lithium sources. In its first phase, it could produce 40,000 metric tons of battery-grade lithium carbonate annually, enough to power around 800,000 EVs. A steady domestic supply like this could help protect U.S. clean energy and EV industries from geopolitical risks and volatile pricing.

The government’s support for lithium is a clear positive for QuantumScape. Its solid-state batteries rely on lithium-metal chemistry, which remains central to its innovation. Even with an “anode-free” design, lithium is still essential—it forms the metal anode during the first charge. This approach lets QuantumScape batteries store more energy, charge faster and operate more safely than traditional lithium-ion cells.

A stronger domestic lithium supply could also lower input costs and reduce supply chain risks for QuantumScape as it moves toward commercialization. With lithium prices and supply increasingly influenced by global tensions, especially between the United States and China, a reliable local source could give American battery makers a strategic advantage.

Investors seem to be noticing. QuantumScape shares climbed to a 52-week high of $16.49 on Friday, before closing at $15.92, up more than 11% in a single session.

All in all, the U.S. government’s support for domestic lithium not only strengthens national energy independence—it also helps innovators like QuantumScape, whose success depends on a steady supply of this critical material.

The Zacks Rundown on QuantumScape

Shares of QS have jumped more than 320% over the past six months, breezing past the industry’s growth.

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QuantumScape currently has an average brokerage recommendation (ABR) of 3.44 on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by nine brokerage firms. 

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See how the Zacks Consensus Estimate for QS’ earnings has been revised over the past 90 days.

Zacks Investment Research Image Source: Zacks Investment Research

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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General Motors Company (GM) - free report >>

Lithium Americas Corp. (LAC) - free report >>

QuantumScape Corporation (QS) - free report >>

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