Boston, MA 03/04/2014 (wallstreetpr) – Highpower International Inc (NASDAQ:HPJ) seems to have finally broken out of its near earth orbit and is now aiming for the stars. The rechargeable battery solutions provider has received orders for large format lithium batteries from a Chinese company.
Battery makers on the radar screens:
The EV industry is on an upward trajectory as recent sales data from auto manufacturers’ show. The interest in electric cars is now translating into sales and improvement in technology has ensured that cars and other electric vehicles can travel over longer distances before recharging. Companies like Highpower International Inc (NASDAQ:HPJ) never had it so good as they had to spend a lot of effort and time to convince customers about their source of power. The latest order from Huizhou Yipeng Energy Technology Ltd also shows that domestic American companies may have been able to scale the Great Wall of China. The company’s batteries will be used in electric buses as well as in hybrid cars in China. Once successful, this trial order can also lead to several lucrative orders in future.
Electric Cars and other uses:
The batteries made by Highpower International Inc (NASDAQ:HPJ) are based on lithium polymer technology. The company will be supplying two variants 16-ampere-hour and 20-ampere-hour. The company expects to get orders worth $4-$5 million from the Chinese system integrator. It is estimated that one hybrid bus will require 96 of the 16- ampere-hour battery and each plug-in hybrid bus will require 288 of the 20-ampere-hour battery.
Tesla Motors Inc (NASDAQ:TSLA) has brought electric powered vehicles to the forefront. Though the company sells only a fraction of gasoline powered cars, it has created a buzz in the market. The news that it is planning on a mega factory for batteries along with Panasonic has created waves. Other battery manufacturers have also benefitted. Once the factory starts production in 2017, the company is expected to create demand from various segments to cater to the production. This will have a positive effect on other manufacturers as well.
