Tomahawk, WI 03/31/2014 (Basicsmedia) – Arotech Corporation (NASDAQ:ARTX) share prices have skyrocketed in the last six months — growing by 253.14% from October 01, 2013 to March 31, 2014.

Battery Stocks Rising

Arotech Corporation (NASDAQ:ARTX) is in the business of making Lithium batteries (apart from other activities) and companies such as FuelCell Energy Inc (NASDAQ:FCEL) and Plug Power Inc (NASDAQ:PLUG) who are in the business of batteries and fuel cells have all seen smart rallies. While FuelCell share prices increased by 89.79% in the last six months, Plug Power saw its stock rise by a phenomenal 841.88% in the same six-month period.

Lithium-ion batteries are in high demand as they are used in cellphones, laptops as well as by the aerospace and defense industries. These batteries are also power Tesla Motors Inc (NASDAQ:TSLA)’s existing Model S cars and the mass-market sedans it hopes to introduce next year.

To meet its own expected rising demand, Tesla recently announced a mammoth battery-manufacturing plant called ‘Gigafactory’ with an investment of $5 billion that will start production in 2017. In the meanwhile, companies such as Arotech get to benefit from the rising demand for Lithium-ion batteries.

New Orders for Arotech

Reflecting the robust demand for Li-ion batteries, Arotech Corporation (NASDAQ:ARTX) announced in early March that an existing customer of the company had placed a follow-on order amounting to $3.5 million. The company announced fresh orders in late March amounting to $2 million from its defense sector clients.

Growth Prospects Look Good

Arotech Corporation (NASDAQ:ARTX) says it has three more new contracts in the pipeline amounting to a total of $120 to $155 million.

UAVs and drones are playing an increasingly larger role in the Pentagon’s ongoing missions in many trouble spots of the world where it’s fighting a stealthy war with secretive terrorist groups such as Al Qaida. But it’s not just the Department of Defense that is going to spend billions to increase its drone fleet. With private sector players such as Amazon.com, Inc. (NASDAQ:AMZN) and Facebook Inc (NASDAQ:FB) also showing interest in drones, the demand for Li-ion batteries will get additional fillip from drone manufacturers.

Its SWIPES (Soldier Worn Integrated Power Equipment System) for the U.S. Army is also doing good business.

Arotech is also a strong player in the simulation business which is also seeing robust growth.

Conclusion

The company’s 4Q 2013 and FY2013 results to be announced at the end of trading today should reflect the very strong financial health of Arotech.

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