Electric-vehicle (EV) battery technology company QuantumScape (NYSE: QS) gave investors a reason to cheer with its third-quarter report last night, and its shares are surging as a result. The stock popped nearly 36% in early morning trading. As of 11:38 a.m. ET, it was still up by 21.6%.

The company announced it has achieved an important milestone in its work to develop commercially viable solid-state batteries for EV makers. It has shipped samples planned for its first commercial product to automakers and other original equipment manufacturers (OEMs) for testing. That was one of QuantumScape’s major goals for 2024.

QuantumScape has a two-stage plan to mass produce the parts required for its solid-state EV battery. The first stage “Raptor” process has been used to produce low-volume prototypes.

The company announced that the first low-volume B-sample battery cells from its Raptor production process have been shipped for automotive customer testing. The next “Cobra” stage of production is set to begin in 2025.

The samples from its first commercial product, QSE-5, are designed to meet the requirements of automotive applications and provide EV buyers with better battery technology. The samples, made with separators and now being tested by automakers, feature high energy density and provide a less-than-15-minute fast-charging capability for EV owners. The batteries are safer and designed to operate over the full automotive temperature range.

In the earnings release, the company stated, “[T]o the best of our knowledge, these cells are the first anode-free solid-state lithium-metal cell design ever produced for automotive applications.” While the testing process will still take months to complete, it’s an important step for QuantumScape.

Investors reacted by jumping into the stock today. Shares are still down by more than 20% over the last six months, though. For those who can tolerate the risks and believe the company can successfully manufacture its commercial product at scale, it isn’t too late to buy the stock.

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