Expion360 Inc. (NASDAQ: XPON) is a lithium-ion phosphate battery supplier and has made its debut in the secondary markets as recently as in April of this year. Its market capitalization stands as being barely $6.6 million. XPON stock has suddenly found itself as being the center of attention following recent news of a deal signing.
Breakthrough Deal Signing for Expion360
Expion360 made the news earlier today, after the revelation by management that the company had just signed in a deal with a high-profile manufacturer of sports utility vehicles. The arrangement would entail XPON supplying lithium to the SUV’s battery maker in particular, acting as a major step towards the company establishing its brand and capability in the heavy vehicle market. According to management, supply to this new client will begin as early as January 2023. As the news broke XPON stock price saw a growth spurt taking it from below $0.90 to the $1 mark.
XPON Continues its Growth Momentum
The recent signing by XPON comes in the wake of a wider growth trend that the company has been experiencing. Last year, it saw its annual revenue climb from $1.6 million to an impressive $4.5 million, over the span of only 12 months. Despite this, XPON stock has performed dismally in the market, since its debut in April, after which it has fallen from $8 to penny levels. This had come as a result of the supply chain challenges seen this year with the breakdown of networks, following Russia’s invasion of Ukraine. Positive news updates such as the recent contract signing come at a much-needed time for the company moving forward.
XPON is a very young player in the market and has got a long way to prove its mettle to shareholders. Pushing on with its recently acquired momentum, the company could begin establishing itself in the wider lithium market, which is dominated by giant competitors.