Plug Power Strikes Deal To Supply Hydrogen Fuel-Cell System For South Korea's Edison Motor's EV Buses

Plug Power, Inc. PLUG shares are advancing after the hydrogen fuel cell energy company announced a new contract.

What Happened:  Plug Power and South Korean automaker Edison Motors announced an agreement under which the former will provide power to the latter's electric bus platform. Edison is working on bringing a hydrogen fuel cell-powered EV city bus to the market.

Power for the EV bus will be supplied by Plug Power's 125 kilo-watt ProGen fuel cell engine. The companies expect the prototype for the EV bus to be completed by the second half of 2022 and launch a mass-market platform by the first half of 2023.

Edison Motors expects to mass-produce the fuel cell electric buses, tentatively named "SMART 110F" and distributed in South Korea.

Related Link: Why This Plug Power Analyst Sees 61% Upside Potential

Why It's Important:  Edison sold the largest number of EV buses in Seoul in 2021 and is actively expanding its EV bus platform with the launch of a new inter-city, long-range EV bus platform.

Edison Chairman Young-kwon Kang said in the statement the company hopes to partner with Plug Power in the future on other mobility applications, including trucks, vessels, drones, and PAVs. The company aims to sell the fuel cell-powered EV buses in overseas markets outside of South Korea.

For Plug Power, the agreement marks another step in expanding its global footprint to stimulate the Asian hydrogen and fuel cell market. "We acknowledge this is one of the fast-growing markets in the world and believe that this partnership with Edison Motors, will pave the way to achieving global net-zero, said Andy Marsh, CEO of Plug Power.

Plug Power is witnessing abounding order flow, thanks to partnerships and M&A deals.

Price Action: In premarket trading, Plug Power shares added 4.97% to $32.92.

Related Link: Plug Power Raises Revenue Guidance After Mixed Q3, Announces Frames Acquisition

Photo: Courtesy Plug Power