Amprius Technologies (NYSE:AMPX) stock soared more than 70% yesterday after the company announced that it had obtained a new machine. Apparently, the machine will enable it to tremendously increase production. Shares started yesterday at $6.36 and closed at $11.01, although this morning AMPX is now losing a chunk of those gains. Amprius is currently down by more than 10%.
The new machine isn’t the only thing that gave AMPX stock a big jolt yesterday. In addition, the company disclosed that it has been tentatively awarded a cost sharing grant from the U.S. Department of Energy.
Here’s what investors should know about AMPX stock moving forward.
AMPX Stock: A Machine and a Potential Grant
Yesterday, Amprius reported that it had received its “first large-scale anode production machine.” Using the machine, the company will be able to increase its production of silicon anodes by about 10 times by December 2023. The company plans to install the machine at its location in Fremont, California.
As a result, Amprius believes it will be able to meet rising demand “for products and prototypes” of its batteries. The company also says the machine will help accelerate “development of its technological processes for building batteries at a gigawatt-hour scale.”
In addition to the machine news, Amprius has also tentatively obtained a grant worth $50 million from the U.S. Department of Energy. However, these funds will only be awarded if the company can successfully negotiate the financial terms of the deal.
Support for EV Batteries
This latest award for Amprius seems to be a small component of a much larger, $2.8 billion expenditure by President Joe Biden and his administration. Specifically, the U.S. government is devoting that sum to supporting manufacturers of electric vehicle (EV) batteries and their components within the United States.
Looking forward, this expenditure could enable more EVs to qualify for the expanded EV tax credits included in Biden’s climate change plan, according to the Wall Street Journal. The plan was signed into law earlier this year.
On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
