Plug Power Inc. (NASDAQ: PLUG) shares are at multi-year highs after the hydrogen fuel cell manufacturer announced a joint venture with a French manufacturer on Tuesday Renault ADR (Pink: RNLSY).
What happened: Plug Power and Renault have signed an agreement to launch a 50-50 joint venture for research and development, production and sale of fuel cell vehicles and turnkey hydrogen solutions, the companies said in a joint statement.
The joint venture will be operational by the end of the first half of 2021 and will be based outside France, according to Plug Power and Renault. It will serve the fast-growing market for light commercial vehicles with light fuel cells, taxis and commercial vehicles, the companies said.
The company, the companies said, will build on Renault̵
Renault and Plug Power have announced that the joint venture will begin commercializing fuel cell vans in Europe, starting in 2021 with the deployment of a pilot fleet.
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Why it is important: Fuel cell technology is slowly gaining momentum as an alternative to battery cell technology to power green vehicles.
This is reflected in the share price of Plug Power, which is torn from mid-2020.
“Plug Power is proud to be at the forefront of innovation in the hydrogen fuel cell industry, which is why we are excited to partner with Groupe Renault to become the market leader in heavy fuel cell vehicles in Europe,” said Plug CEO. Power Andy Marsh said in a statement.
PLUG Price Action: Shares of Plug Power gained 22.33% in Tuesday’s session, closing at $ 66.02.
Related Link: Why Morgan Stanley Says Plug Power Is Positioned For Long-Term Growth
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