Volkswagen CEO Herbert Diess. Photo credit: Volkswagen

German automaker Volkswagen has announced a commitment to invest up to $200 million in QuantumScape, a Stanford University spinout battery technology startup. Volkswagen has previously invested over $100 million in QuantumScape, which is based out of the city of San Jose, California. The German automaker is the largest automotive shareholder in QuantumScape and has partnered with the apparently secretive startup for eight years running. QuantumScape is one of several startups that are looking to push forward the field of battery technology, which mainly comes in handy in the development of electric vehicles. Another such battery tech startup is Sila Nano, which has raised significant funding from another German automaker, Daimler.

QuantumScape was founded in 2010 and is known to have raised more than $100 million in funding, most of it from Volkswagen. Other notable investors in the company include venture capital firms Kleiner Perkins, Khosla Ventures, and Lightspeed Venture Partners. Breakthrough Energy Ventures, a clean energy-focused investment fund spearheaded by famed entrepreneur Bill Gates, is also an investor in QuantumScape.

QuantumScape, although having not yet shipped a commercial product, is known to be valued at more than $1 billion (Pitchbook data). As of now, Volkswagen seems to be QuantumScape’s only automotive partner.