On Monday, Plug Power (PLUG) announced that it would partner with steel-maker Hyundai Hysco to build fuel cells. Investors were unimpressed with the news, sending PLUG stock down sharply in mid-day trading.
PLUG shares fell more than 4% after PLUG said its joint venture with Hyundai Hysco would concentrate on creating and marketing hydrogen fuel cells in Asian markets. During a conference call, PLUG CEO Andy Marsh said that the partnership with the South Korean company would provide PLUG with a “combined addressable market size to exceed $10 billion” in Asia, Reuters notes.
The deal is expected to be finalized by the end of July. Hyundai is looking to use fuel cells to replace traditional batteries in its motorized material handling equipment.
Last month, PLUG shares slumped after analysts at Cowen & Co. and Roth Capital downgraded their ratings for PLUG stock.
PLUG stock closed at $7.32 a share on Friday.
More Energy Stock News: