Fuel cell maker Plug Power Inc said on Monday it had agreed to form a joint venture with South Korea's Hyundai Hysco Co Ltd, a steel supplier to Hyundai Motor, to develop and sell hydrogen fuel cells in Asia.

Plug Power said last month it was searching for partners to enter Asia.

"Asian countries that we are likely to target with this JV will give us a combined addressable market size to exceed $10 billion," Plug Power Chief Executive Andy Marsh said on a conference call.

The maker of fuel cell systems that are used to replace lead acid batteries said the primary focus of the joint venture would be material handling equipment such as forklifts.

The companies are expected to finalise the details of the joint venture by July 31, Plug Power said.

Plug Power's shares were down 3 percent at $7.09 in early trading on the Nasdaq.