Ballard Power Systems and Weichai Power have taken the next steps in their joint venture (JV) to support the burgeoning fuel cell electric vehicle (FCEV) market in China.

The two companies closed a strategic collaboration transaction back in November 2018 and formed Weichai Ballard Hy-Energy Technologies (Weichai-Ballard JV).

Ballard closes strategic collaboration with Weichai

Through this joint venture, Ballard today said it will supply a mix of certain fuel cell products and components that will be used in the assembly of modules to power zero emission FCEVs in China, in an order worth approximately $44m.

Once assembled by the Weichai-Ballard JV, the final modules will be sold to Weichai Power to support initial deployments against Weichai’s commitment to supply a minimum of 2,000 fuel cell modules for commercial FCEVs in China.

Randy MacEwen, Ballard President and CEO said, “This is a very exciting next step for our Weichai-Ballard joint venture.”

“Weichai’s commitment to support the deployment of 2,000 FCEVs in China is the largest to date globally.”

“It will enable further fuel cell cost reductions as we move toward commercial scaling. Weichai intends to be at the forefront of zero-emission FCEV deployments in China.”

“Since the closing of our strategic collaboration, we have been moving very quickly together to prepare the Weichai-Ballard JV manufacturing facility for the assembly of Ballard fuel cell stacks and modules.”

“We anticipate the Weichai-Ballard JV facility will be operational by the end of 2019, positioning us with a strong set-up in the China market for 2020.”

Ballard and Weichai’s strategic collaboration transaction includes:

  • An equity investment by Weichai in Ballard of approximately $163.6m, representing a 19.9% interest in the company
  • The establishment of a JV company in Shandong Province, in which Weichai owns 51% and Ballard owns 49%, to support China’s FCEV market, along with $90m in technology transfer payments from the JV to Ballard
  • Weichai’s intent to support the deployment of at least 2,000 commercial FCEVs by 2021, using Ballard technology.