Boston, MA 03/03/2014 (wallstreetpr) – Highpower International Inc (NASDAQ:HPJ) believes it can become a global leader in delivering rechargeable battery solutions. But what are the opportunities or challenges that there are for the company towards attaining this dream? The recent order announcement has been the center reason why the stock of HPJ has been in an exciting position. But is that enough?
Highpower International Inc (NASDAQ:HPJ) announced that it received order for large format lithium batteries from Huizhou Yipeng Energy Technology Ltd. The large format lithium batteries will be used to power electric buses and hybrid cars in China. This becomes the first scale order for HPJ and it signals that the company could be getting more of similar orders in future.
Things looking up for HPJ
As part of the agreement with Huizhou Yipeng Energy Technology Ltd, Highpower International Inc (NASDAQ:HPJ) will supply two sets of lithium battery products; there will be the 20 ampere hour and 16 ampere hour lithium battery. And as mentioned, the same will be deployed for use in electric bus and hybrid cars.
With electric vehicles vying forcefully for mainstream position in the auto market, thanks to ambitious EV manufacturers such as Tesla Motor Inc (NASDAQ:TSLA), there will be increased demand for rechargeable, durable and effective batteries.
Tesla Motors Inc (NASDAQ:TSLA) for instance uses lithium-ion cells to power its flagship Model S. The demand for the car keeps on growing and the company has moved from delivering just a few units in a quarter to several thousands. In fact, the company announced that its only undoing was battery shortage, thus it could not meet the orders that keep coming from global markets like Europe and China.
It thus goes that Highpower International Inc (NASDAQ:HPJ) stands to benefit from the surge in demand and manufacturing of electric vehicles – but if it sets eyes on global opportunities.
Aiming high
Highpower International Inc (NASDAQ:HPJ) has been so much a domestic player that it has missed some opportunities abroad. But if the word of the company’s management is to be believed, the company is ready to expand beyond its traditional markets to take opportunities in the global arena. So then, that will herald and era of profitability moving forward.
