Volkswagen has reportedly acquired 5% stake in battery maker QuantumScape to develop technology which will help the company boost the range of electric cars it offers.
Volkswagen is planning to use the fireproof battery technology in its brands like Porsche and Audi; Bloomberg cited a source familiar with the matter.
The early stage battery startup has been working on solid-state batteries that can be considered as an alternative to lithium-ion technology, which uses liquid electrolytes.
The batteries created are energy dense and safer than the standard lithium ion batteries.
The company is planning to compete with electric car maker Tesla by boosting battery capacity and improving safety as Tesla's Model S previously came under bad light when reports regarding fire came out.
Volkswagen has around 44,000 research and development engineers and the company reportedly spends $13bn on new technology every year.
