Shares of QuantumScape jumped after the company narrowed its loss in the third quarter and said it plans to build a new production line to meet demand for solid-state batteries.

Shares jumped 11% to $4.43 in after-hours trading on Wednesday. The stock closed flat at $3.98, and had fallen 62% this year through the close.

The battery technology company said it is partnering with Muehlbauer Group to stand up a 100 megawatt-hour capacity cell production line. Muehlbauer will work on providing cell assembly equipment and production design improvements for the company.

The plan represents the first commercial-scale mass production of the company's battery cells, it said. Production on the new line is expected to begin in 2028.

The company also posted a third-quarter loss of $85.6 million, or 14 cents a share, compared with a loss of $105.2 million, or 18 cents a share, a year earlier. Analysts polled by FactSet were expecting a loss of 17 cents a share.

Operating expenses fell to $92.4 million from $115 million a year prior.

The company said it had $9.8 million in customer billings during the third quarter, including both automotive and non-automotive customers.