Plug Power Inc (PLUG - Free Report) announced that it has acquired American Fuel Cell (“AFC”), founded by ex-employees of General Motors Company (GM - Free Report) . The company develops Membrane Electrode Assembly (“MEA”) technology, which is the key component of a fuel cell that helps to produce power.
Benefits of the Acquisition
Plug Power will have access to innovative, leading edge MEA design capability, which is likely to expand the company’s area of operation into the on-road delivery vehicles market. Per a Frost & Sullivan release, the global electric truck market will achieve annual sales of more than 2.25 million units by 2025. The AFC acquisition will augment Plug Power’s knowledge and expertise of on-road applications.
Demand for FCEV
Fuel cell electric vehicles (FCEVs) promote clean energy and are increasingly favored over the diesel-powered vehicles. Fuel cell generates clean electricity with high-power density, extended range and market-leading uptime based on rapid refueling
The need for lower emission vehicles boosts demand and provides opportunities for fuel cell makers like FuelCell Energy Inc (FCEL - Free Report) and Ballard Power Systems, Inc (BLDP - Free Report) .
Zacks Rank & Price Movement
Plug Power carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past 12 months, Plug Power’s shares have lost 13.1% against the industry’s rally of 5.4%.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>