NEW YORK (TheStreet) -- Quantum Fuel Systems (QTWW) stock is surging Wednesday after sharing its strategic plans to service the heavy duty original equipment manufacturer (OEM) market. Shares have partially recovered from heavy falls suffered over Tuesday after one of its major customers partnered with a competitor.
By midday, shares had advanced 33.6% to $4.06. The stock hasn't fully recovered from a 60% drop over Tuesday.
On Wednesday, the alternative energy developer said it had recently signed a major long-term supply agreement with a major transportation company, whereby it will supply compressed natural gas fuel storage tanks.
"This new relationship is an early indicator of the company's ability to provide the industry with fully integrated systems and at the same time diversify its existing customer base by leveraging its core expertise in advanced tank technologies and systems integration and being a one-stop-shop for OEMs and fleets for complete CNG fuel systems," Quantum said in a statement.
A day earlier, competitor Hexagon Lincoln announced a joint venture with Agility Fuel Systems, a major customer of Quantum. In its recent annual report, Quantum said Agility generated 45% of the company's total revenue last year.
In its statement Wednesday, Quantum said Agility would honor the existing purchase order and extend arrangements through to at least December 31 this year.