QuantumScape soars 16% as a 'Top 10' automaker is set to test its EV battery prototypes

• QuantumScape leaped 16% during Tuesday's session on a battery-testing deal with a large automaker.
• The unnamed "Top 10" vehicle maker will evaluate prototypes of the company's solid-state battery cells.
• Volkswagen and a Bill Gates' venture are among the California startup's backers.

QuantumScape stock jumped Tuesday after the electric vehicle battery maker said a prominent but unnamed vehicle manufacturer will test prototypes of its solid-state battery cells.

It follows another deal the company has made with a top automaker recently. In the latest one, QuantumScape signed a collaboration and evaluation agreement with the second vehicle maker, which it described as ranking among the top 10 of its peers in terms of global revenue.

The automaker has also agreed to purchase 10 megawatt-hours of capacity from QuantumScape's pre-pilot production line facility.

Financial terms of the evaluation and capacity agreement were not disclosed in a filing with the Securities and Exchange Commission.

Shares soared as much as 16% to $24.10, the first time the stock has traded above $24 since August 11. A win on Tuesday would help QuantumScape stock trim its year-to-date loss of 75% posted through Monday's session.

The California startup counts Volkswagen and Bill Gates' Breakthrough Energy Ventures among its investors and partners. As of July, the company had a funding total of about $2 billion.

QuantumScape says its solid-state battery technology has advantages over the industry standard of lithium-ion batteries, including increasing the driving range for electric vehicles and reducing the risk of fire. In July, the company hired a Tesla veteran to lead its manufacturing efforts.