Shares of electric vehicle (EV) battery maker QuantumScape (NYSE:QS) surged approximately 8% in trading yesterday and are now up a further 2% today. The recent spike in QS stock value was ignited by the news that the company has successfully commenced delivering prototypes of battery cells to its clientele.

By satisfying this milestone ahead of schedule, QuantumScape has done more than merely meet expectations; it has ignited the enthusiasm of QS stock investors.

QuantumScape’s Prototype Deliveries

QuantumScape, a trailblazer in solid-state EV batteries, announced that it has initiated the distribution of Alpha-2 prototype battery cells to select customers. Terming these prototypes a “significant milestone,” the company sees them as a crucial step towards the commercial release of the QSE-5 battery.

The Alpha-2 battery cells showcase higher energy density compared to an earlier prototype. QuantumScape attributes this enhancement to the Alpha-2’s advanced cathodes with greater loading and more efficient packaging, a design that optimizes materials and space within the cell.

Moreover, these cells exhibit the primary functionality that will be integrated into the forthcoming QSE-5 commercial battery.

Challenges on the Horizon

In a previous announcement back in January, QuantumScape’s key partner Volkswagen (OTCMKTS:VWAGY) lauded the company’s battery performance, surpassing the automaker’s stringent standards by maintaining over 95% capacity after more than 1,000 charging cycles, supporting a range of over 500,000 kilometers without significant capacity loss.

However, potential storm clouds loom over QS stock as reports emerge that Volkswagen is exploring partnerships with other EV battery manufacturers, including France-based Blue Solutions. Sources indicate that Volkswagen is contemplating using Blue Solutions’ batteries in its vehicles, potentially disrupting its existing alliance with QuantumScape.

As of the publication date, the author Larry Ramer does not hold any positions, direct or indirect, in the securities discussed in this article. The opinions expressed are solely those of the author, complying with InvestorPlace.com Publishing Guidelines.