Shares of Hanwha Corp., the parent company of South Korea’s seventh largest conglomerate Hanwha Group, rallied Tuesday after it has gotten richer through its $100 million investment in U.S. hydrogen truck maker Nikola Motor after its IPO on the Nasdaq.

Its holdings of 6.13 percent in Nikola Motor now is valued at $1.6 billion based on the Monday closing price of $73.27, which put the company’s market cap at $26 billion. The stock price more than doubled from $33.75 a day earlier on its debut day, and the stake’s value has swelled to nearly 16-fold in just 18 months since the acquisition.

Hanwha shares soared 26.70 percent to 28,950 won on Tuesday.

Hanwha has acquired a 6.13 percent stake in the Phoenix-based Nikola Motor for a combined $100 million via affiliated units Hanwha Energy and Hanwha General Chemical in November 2018.

Nikola Motor is hydrogen- and battery-powered truck making startup dubbed as an emerging Tesla competitor. With investments from Korea’s Hanwha, Germany’s Bosch and Italy’s CNH Industrial, it now is developing fuel-cell electric vehicles that can drive up to 1,200 miles on a single charge and battery electric vehicles for European market.

The company reportedly has secured truck orders for a combined 14,000 units so far.

Buoyed by the success, Hanwha Group’s affiliated units now are actively seeking forays into the U.S. hydrogen vehicle market through Nikola Motor. Hanwha Energy has the right to supply power from its solar power plants to Nikola’s hydrogen charging stations, and Hanwha General Chemical the right to operate the charging locations.

“To support their business, Hanwha Q Cells, the group’s solar power unit, will supply photovoltaic (PV) modules, and Hanwha Solution will provide hydrogen storage tanks with development of own technology to produce hydrogen with electrolysis of water,” said an official at Hanwha.

Hanwha’s investment was mostly led by the group’s heir apparent Kim Dong-kwan, company sources said. Kim, vice president of Hanwha Solution and the eldest son of Hanwha Group Chairman Kim Seung-youn, spearheaded the study on the company and communication with Nikola Motor founder Trevor Milton to check the energy vision for future of the two companies.

Separately, Hanwha System announced that it has acquired British satellite communication antenna developer Phasor Solutions Ltd. on the same day with an aim to accelerate forays into the satellite antenna business.

The deal was closed Friday, and details about the financial terms were undisclosed.

Hanwha System shares on Tuesday gained 7.81 percent to 9,800 won in Seoul.

By Noh Hyun and Lee Ha-yeon

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]