Plug Power IncPLUG announced that it has acquired American Fuel Cell ("AFC"), founded by ex-employees of General Motors Company GM . 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
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%.
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