Plug Power stock jumps 30% after $1.5 billion investment from South Korea
Published: Jan. 7, 2021 at 1:21 p.m. ET
By Claudia Assis
MarketWatch
Shares of Plug Power Inc. PLUG, +35.11% rallied 30% Thursday, a day after Plug Power announced a $1.5 billion investment from a South Korean company and the intention to form a joint venture with that company by next year. Plug Power on Wednesday said that it had partnered with SK Group "to accelerate hydrogen as an alternative energy source in Asian markets." The goal is to provide hydrogen fuel cell systems, hydrogen fueling stations and electrolyzers to the Korean and other Asian markets, with SK Group agreeing to make a $1.5 billion investment in Plug Power. The deal is expected to close in the first quarter. The companies also plan to form a joint venture by 2022. "The opportunity to partner with SK presents an attractive and timely opportunity to establish a foothold in (the Korean) market with one of South Korea's leading industrial conglomerates," Plug Power said. Shares of Plug Power, which mostly makes hydrogen fuel-cell packs to power warehousing equipment such as forklifts, and other products such as backup fuel-cell stationary power, have gained 1,090% in the past 12 months, compared with gains around 18% for the S&P 500 index SPX, +1.48%.
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