QuantumScape, an electric-car battery supplier backed by Volkswagen ) and Bill Gates, announced plans Thursday to go public via a merger with a blank check company

QuantumScape will go public in the fourth quarter. It agreed to merge with Kensington Capital (KCAC). The electric-car stock will trade on the New York Stock Exchange under the ticker QS.

The enterprise value of the new company is $3.3 billion. QuantumScape will receive over $1 billion in cash and funding commitments, including financing led by the Volkswagen Group and Qatar Investment Authority, the Persian Gulf state's sovereign wealth fund.QuantumScape builds solid-state lithium-metal batteries, which some believe are safer than conventional liquid-state batteries.

Electric cars are still a niche market despite Tesla's (TSLA) popularity. But the market is growing and should hit 3.2 million vehicles sold in 2025 as emission rules become more stringent in Europe, China and other markets.