Plug Power Rallies On JV Partnership With Renault For Hydrogen-Powered Vehicles In Europe

Plug Power Inc. PLUG shares are at multiyear highs after the hydrogen fuel cell manufacturer announced a joint venture Tuesday with French automaker Renault ADR RNLSY.

What Happened: Plug Power and Renault signed an agreement to launch a 50-50 joint venture for R&D, manufacturing and sale of fuel cell-powered vehicles and hydrogen turnkey solutions, the companies said in a joint statement.

The joint venture will become operational by the end of the first half of 2021 and will be based out of France, according to Plug Power and Renault. It will serve the fast-growing market of fuel cell light commercial vehicles, taxis and commercial people transportation, the companies said.

The venture, the companies said, will build on Renault's experience in new energies and 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 said the joint venture will start commercializing fuel cell LCVs in Europe starting in 2021 with pilot fleet deployments.

Related Link: Option Trader Bets $1.1M On Plug Power Following South Korea Deal

Why It Matters: Fuel cell technology is slowly gaining momentum, as an alternative to battery cell technology for powering green energy vehicles.

This is reflected in the stock price of Plug Power, which has been on a tear since mid-2020. 

"Plug Power prides itself on being at the leading edge of innovation in the hydrogen fuel cell industry, which is why we are thrilled to partner with Groupe Renault to become a leader of market fuel cell heavy vans in Europe," Plug Power CEO Andy Marsh said in a statement. 

PLUG Price Action: Plug Power shares 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