Plug Power Inc. (NASDAQ: PLUG) shares are at a multi-year high after the hydrogen fuel cell manufacturer announced a joint venture with the French carmaker on Tuesday. Renault ADR (Pink: RNLSY).
What happened: Plug Power and Renault have signed an agreement to set up a 50-50 joint venture for R & D, manufacturing and selling fuel cell-powered vehicles and hydrogen solutions, the companies said in a joint statement.
According to Power Power and Renault, the joint venture will be operational by the end of the first half of 2021 and will be from France. It will serve the fast-growing market of fuel cell light commercial vehicles, taxis and commercial passenger transport, the companies said.
According to the companies, the company will build on Renault’s experience in new energy and a strong position in electric light commercial vehicles and on Plug Power’s 20 years of experience in fuel cell technologies and hydrogen solutions.
Renault and Plug Power have said the joint venture will begin commercializing LCVs for fuel cell in Europe, starting in 2021 with the deployment of pilot fleet.
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Why it matters: Fuel cell technology is slowly gaining ground, as an alternative to battery cell technology to power green energy vehicles.
This is reflected in the share price of Plug Power, which has been tearing up since mid-2020.
“Plug Power is proud to be at the forefront of innovation in the hydrogen fuel cell industry, which is why we are delighted to work with Groupe Renault to become a leader in heavy diesel fuel in Europe,” said Andy Marsh, CEO head of Plug Power. said in a statement.
PLUG price action: Plug Power shares rose 22.33% during the session on Tuesday to $ 66.02.
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