Shares of Quantumscape Corp. (QS) surged by 20.43% in pre-market trading on Monday, leading a broader rally in lithium battery concept stocks. The significant uptick comes as investors react positively to news of potential investments in critical minerals and frontier technologies.

The surge in Quantumscape's stock price is part of a larger trend affecting U.S. lithium battery stocks. Other companies in the sector also saw substantial gains, with Lithium Americas (LAC) up over 14%, Enovix (ENVX) gaining more than 9%, and Albemarle (ALB) rising over 7%. This sector-wide rally appears to be fueled by JPMorgan Chase's announcement of plans to invest up to $100 billion in areas including critical minerals and frontier technologies, as part of a broader $1.5 trillion initiative aimed at meeting national security requirements.

Adding to the bullish sentiment, unusual options activity was detected in Quantumscape stock. Trading data showed 57,986 calls trading, which is 1.7 times the expected volume. The implied volatility for these options increased by over 12 points to 148.13%, suggesting heightened market expectations for potential price movements. This increased options activity, combined with the broader sector rally and potential investment inflows, appears to be driving the extraordinary surge in Quantumscape's stock price.