Plug Power Inc. (NASDAQ: PLUG) Shares are at multi-year highs after the hydrogen fuel cell maker announced a joint venture on Tuesday with the French automaker Renault ADR (Pink: RNLSY).
What happened: Plug Power and Renault signed an agreement to launch a 50-50 joint venture for R&D, manufacture and sale of fuel cell vehicles and hydrogen-ready solutions, the companies said in a joint statement.
The joint venture will start operating at the end of the first half of 2021 and will be headquartered in France, according to Plug Power and Renault. It will serve the fast-growing market for light commercial vehicles with fuel cells, taxis and commercial transportation, the companies said.
The venture, the companies said, will build on Renault’s experience in new energies and a strong position in light commercial electric vehicles and Plug Power’s 20 years of experience in fuel cell technologies and hydrogen solutions.
Renault and Plug Power said the joint venture will start selling fuel cell LCVs in Europe from 2021, with the deployment of a pilot fleet.
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Why it matters: Fuel cell technology is slowly gaining momentum, as an alternative to battery cell technology to power green energy vehicles.
This is reflected in the Plug Power share price, which has been on the rise 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 excited to partner with Groupe Renault to become the market leader in heavy fuel cell vans in Europe. “Plug Power CEO Andy Marsh said in a statement.
PLUG price action: Plug Power shares rose 22.33% in Tuesday’s session, closing at $ 66.02.
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