Amazon.com, Inc. (NASDAQ: AMZN) acquired the right to purchase up to 23 percent of Plug Power, Inc. (NASDAQ: PLUG). Plug Power announced that it would supply batteries to power forklifts used in Amazon’s warehouses. Plug Power reached a high of $3.09 on early trading Wednesday and had massive volume of over 120 million shares traded on the day.
The online retailer will equip forklifts at 11 of their warehouses this year with hydrogen fuel cells so the forklifts may last longer. The hydrogen fuel cells also boast a faster charging rate. Amazon is expected to spend $70 million on the deal in 2017 and double that the next year, reported Plug’s Chief Executive Andy Marsh in an interview.
“Fulfillment centers are traditionally fairly low tech,” said Marsh, emphasizing on reduced physical space by using the more efficient batteries.