Ballard Power stock jumps on plan to cut costs, boost production

Shares of Ballard Power Systems (BLDP.TO)(BLDP) surged on Monday, after the Canadian fuel cell company announced plans to cut costs and ramp up production of a key component.

Vancouver-based Ballard sells hydrogen fuel cells for buses, commercial trucks, trains, marine vessels, and stationary power.

In a press release on Monday, the company said a new “disruptive manufacturing technology” will increase its manufacturing of flexible graphite bipolar plates by ten times, while lowering costs up to 70 per cent by late 2025. Ballard says the plates are one of the costliest parts of its fuel cells.

The company said on Monday that it plans to invest about $18 million from its current budget on bipolar plate manufacturing from 2023 through 2025. Ballard says several novel manufacturing processes will allow full automation, resulting in better quality, while consuming less energy, and water.

Toronto-listed shares added as much as 14 per cent on Monday.

Ballard's battered stock has fallen more than 38 per cent in the past 12 months. In 2019, Ballard shares were among the top performers on the Toronto Stock Exchange.

“We're thrilled to announce a project that delivers economic and environmental value for Ballard,” Mark Biznek, Ballard's chief operating officer, stated in the release.

Jeff Lagerquist is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jefflagerquist.

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