Ballard Power Systems Inc. (NASDAQ: BLDP) shares rose after the company reported signing of 3.5-year extension to current Technology Solutions contract with AUDI.
The contract extends the HyMotion program to August 2022. The aggregate value of the contract extension is expected to be $80-to-130 million Canadian ($62-100 million U.S.). The program will support Audi through its small series production launch.
The HyMotion program encompasses automotive fuel cell stack development as well as system design support activities. Ballard is focused on the design and manufacture of world-leading, next-generation fuel cell stacks for use in Audi's demonstration car program. Ballard engineers are leading critical areas of fuel cell product design – including the membrane electrode assembly, plate and stack components – along with certain testing and integration work.
Ballard CEO Randy MacEwen said, "The long-term HyMotion program is a testament to the commitment that Volkswagen Group and Audi have shown toward fuel cell electrification and their partnership with Ballard. Ballard is committed to supporting Volkswagen and Audi's corporate fuel cell automotive goals and objectives.
"We believe the Ballard-designed fuel cell stacks integrated into Audi's propulsion systems and vehicles will deliver outstanding automotive fuel cell performance, including highest power density, lightest weight, highest durability and robust freeze start capabilities."
Concept cars representing multiple Volkswagen and Audi brand models, and utilizing technology and components developed through the HyMotion program with Ballard, have included the Golf SportWagen HyMotion, Passat HyMotion and Audi A7 Sportback h-tron quattro.
Shares gained 24 cents, or 8.2%, to $3.11 Tuesday morning.
