QuantumScape (QS 6.12%) is trying to revolutionize electric vehicle (EV) battery technology, and it made an announcement today that investors noticed: The company is working to develop solid-state batteries it expects will greatly improve the efficiency, safety, and charging time required, as compared to existing EV batteries.

The company said today that equipment needed to produce its solid-state lithium-metal batteries has been installed and released for initial processing of the solid-state separator component. That sent shares soaring by 16% in early trading. After paring some of that gain, QuantumScape shares remained higher by 5.5% as of 11:45 a.m. ET.

QuantumScape achieves 2024 goals

QuantumScape has a two-stage plan to commercialize its solid-state EV battery. The first-stage "Raptor" process has already been used to produce low-volume prototypes, and sample battery cells from its Raptor manufacturing process have been sent to potential automotive customers for testing.

The next "Cobra" stage of production is set to begin next year, and releasing the heat-treating equipment needed for solid separator processing this month was QuantumScape's final goal for 2024. The fact that it has remained on schedule to begin producing samples of its first commercial product in higher volumes next year has investors buying the stock today.

QuantumScape chief technology officer (CTO) Tim Holme commented, "Cobra is a true breakthrough in ceramics manufacturing, and it will pave the way for the scale up of our battery technology."

Is QuantumScape a buy?

This step is just one in the lengthy process toward full approval and manufacturing at commercial scale, though. Investors should know that QuantumScape remains a risky stock to own. But remaining on schedule and achieving all of its 2024 goals has the company on track to potentially deliver large returns for shareholders down the road.