Plug Power Inc (NASDAQ:PLUG) shares were skyrocketing to kick off the week.
The surge comes amid news the company’s announcement that Amazon.com, Inc. (NASDAQ:AMZN) acquired 23% of the company’s shares. The move comes as the e-commerce retailer seeks to up its spending in the fuel-cell industry.
In this year alone, Amazon will spend $70 million on the cause, while the overall plan is to spend a total of $600 million on fuel-cell technology. Plug Power is an American company that focuses on developing hydrogen fuel cells that will eventually replace traditional lithium batteries.
The company’s technology works in warehouses as it replaces battery charging with proton exchange membrane (PEM) fuel cells, as well as hydrogen systems that make a number of operations more efficient, including moving forklift.
The deal with Amazon is an agreement that applies to multiple sites as fuel-cell forklifts will be deployed at 11 warehouses.
The e-commerce retailer is battling against its competitors as it bids to become the preeminent retail product fulfillment provider in the U.S. and abroad, and investing in fuel cell helps the company gain an edge over its competitors.
Fuel cells are complicated as the technology can only be deployed under certain temperatures and conditions, while remaining a pricier option to other conventional battery services.
These will become profitable when they achieve an 80-megawatt-per-year run.
PLUG stock is up 20.7% Monday.
