Boston, MA 02/25/2014 (wallstreetpr) – Things could finally be looking up for Highpower International Inc. (NASDAQ:HPJ) which produces and sales rechargeable nickel-metal hydride batteries, after entering into a partnership agreement for the supply of large lithium batteries to be used for electric buses in China. The company has entered into the agreement with Huizhou Yipeng Energy Technology Ltd that serves various bus electric manufacturing companies in China. This marks first large scale entrance for Highpower that should boost its status in the market.
Highpower agreement
Highpower International Inc. (NASDAQ:HPJ) as part of the agreement is expected to deliver Huizhou Yipeng with two sets of products that will include a 16 ampere hour lithium battery and a 20 ampere hour. The two sets will have to pass quality tests from china National quality center and that of the management team at Huizhou Yipeng.
The batteries are expected to be used in china renowned electric buses and in plug-in hybrid electric buses. This could be huge business for Highpower considering each bus will be using 96 of the 16 ampere hour batteries with each Plug-in electric bus using 288 of the 20 ampere hour battery. Highpower estimates the sale to Huizhou Yipeng to be between $4 and $5 million in the current fiscal year.
Highpower CEO Reaction
Highpower International Inc. (NASDAQ:HPJ)’s Chief Executive Officer was full of optimism that the new partnership will essentially serve as a significant milestone for the company as it strives to target other markets other that the traditional consumer. The electric vehicle industry has been growing in the recent past with Tesla Motor vehicles heavily investing in the industry. As the electric vehicle industry picks up, it could provide a good avenue for Highpower to sale its wide range of electric batteries.
The chief executive officer Mr. Pan is of the opinion the company is on the right track to diversify its rechargeable battery business that should positively impact its revenue collection in the coming years. This comes at the back of the company supplying a small percentage of the rechargeable batteries that were used during the Beijing Olympics.
Highpower International Inc. (NASDAQ:HPJ) currently plans to be a global leader in the rechargeable battery application industry, that also includes recycling processing and re using of batteries. The agreement has seen Highpower shares trade high in premarket trading session moving up by highs of 42%.
