The industrials company signed a 3.5-year extension estimated to be worth between US$62mln and US$100mln to its existing HyMotion program and will be assisting the automaker with its small series production launch.
Through the HyMotion program, Ballard develops automotive fuel cell product design as well as working on testing and integration.
Shares of the Vancouver-based company jumped more than 10% to US$3.18 in Tuesday pre-market trading.
Ballard CEO Randy MacEwen made pointed to the automotive industry’s move towards electrification and the company’s role in that process.
“We believe shared mobility and autonomy will fundamentally change passenger car utilization rates, with much longer daily range requirements and longer hours of operation. We expect fuel cell electrification to uniquely provide the passenger vehicle market with zero-emissions, low noise and smooth acceleration while also meeting long daily range and rapid refueling requirements,” said Ballard CEO MacEwen in a press release.
Several concept cars featuring components developed through the HyMotion program have been showcased at auto shows, including the Golf SportWagen HyMotion, Passat HyMotion and Audi A7 Sportback h-tron quattro.
The initial four-year contract with Volkswagen was signed in March 2013, followed by a 2-year extension in February 2015 and a 6-year contract extending to March 2019. Audi AG took control of the program in 2016.