QuantumScape Corp (QS) shares jumped as much as 16% in early trading on Wednesday after the company and Murata Manufacturing entered into a joint development agreement aimed at high-volume production of ceramic separators for the former's solid-state batteries.

QuantumScape and Murata have been exploring a potential collaboration for high-volume production of ceramic films since February. In line with this, both companies have now entered into the next phase of their collaboration, which includes scaling ceramic separator production and exploring a business model for commercialization.

“Partnership with Murata is an important part of building a robust global ecosystem of suppliers to support the commercialization of QuantumScape's solid-state battery technology,” QuantumScape's CEO Siva Sivaram said.

Murata is known for the design, manufacture, and sale of ceramic-based passive electronic components & solutions, communication modules, and power supply modules.

Retail sentiment on QuantumScape dipped to 'neutral' from 'bullish' territory a day ago, with message volumes at 'high' levels, according to data from Stocktwits.

A bullish user on Stocktwits noted that the stock should be closing over $16 on Wednesday after paring the early gains.

In late September, QuantumScape announced a strategic partnership with Corning (GLW) to advance the production of ceramic separators used in next-gen solid-state batteries as part of its efforts to scale commercial deployment of its lithium-metal battery technology.

Another bullish user on Stocktwits noted that the company's“impeccable execution and disciplined methodology” are encouraging.

Shares of QuantumScape have jumped 191% this year.

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