Plug Power Inc. (NASDAQ: PLUG) shares are at several-year highs after hydrogen fuel cell maker announced a joint venture on Tuesday with French carmaker Renault ADR (Pink: RNLSY).
What happened: Plug Power and Renault signed an agreement to launch a 50-50 joint venture in the field of R&D, production and sale of fuel cell-powered 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 fuel cell light commercial vehicles, taxis and commercial passenger transportation, the companies said.
The company said the case would build on Renault̵
Renault and Plug Power said the joint venture will start commercializing fuel cell LCVs in Europe starting in 2021 with the deployment of the pilot fleet.
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Why it means: Fuel cell technology is slowly gaining momentum, 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 in tears since mid-2020.
“Plug Power is proud to be at the forefront of innovation in the hydrogen cell industry, which is why we are pleased to partner with Groupe Renault to become a leader in fuel cell-heavy vans in Europe,” said Plug Power CEO Andy Marsh in a statement. .
PLUG price action: Plug Power shares gained 22.33% in Tuesday’s session and closed at $ 66.02.
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