Mr. Mark Biznek reports

BALLARD ANNOUNCES PLAN TO SCALE PRODUCTION & REDUCE COSTS OF NEXT GENERATION BIPOLAR PLATES

Ballard Power Systems Inc. plans to materially reduce the costs and scale production capacity of next-generation, proprietary graphite bipolar plates, including the introduction of disruptive manufacturing technology.

This project is the logical progression after Ballard completed two important milestones -- the development of next-generation, thin flexible graphite bipolar plates, and an expansion of membrane electrode assembly (MEA) manufacturing capacity in Canada as part of Ballard's "three-by-three" stack cost reduction program. Bipolar plates are the next-largest-cost item in a fuel cell stack after MEAs, and Ballard expects the implementation of this project, including next-generation plate manufacturing processes and the introduction of new lower-cost material suppliers, to result in cost savings of up to 70 per cent, following commissioning expected in late 2025.

Ballard's next-generation, thin flexible graphite bipolar plates significantly reduce plate materials while enabling high-power-density stacks, which are critical for certain market applications. Graphite bipolar plates are the optimal choice for Ballard's heavy-duty mobility markets, as they offer long durability, reusability at stack end-of-life and high power density, while also offering the lowest plate cost at current and scaled volumes.

Beyond product cost savings, the project will increase Ballard's plate manufacturing capacity by approximately 10 times while significantly improving graphite and resin material yield and reducing production takt times. Ballard has also developed several novel manufacturing processes that enable full automation of the bipolar plate production processes, resulting in substantially improved quality throughput, reduced energy demand, and the elimination of water consumption from plate manufacturing. These innovations are expected to be replicable in any future expansion of Ballard's global bipolar plate production footprint.

"We're thrilled to announce a project that delivers economic and environmental value for Ballard. Not only will we be able to reduce the cost of our bipolar plates and improve customer economics, but we will also consume far less energy, water and material resources in the process," said Mark Biznek, Ballard's chief operating officer. "This investment proves Ballard's innovation in manufacturing technology, in addition to our demonstrated excellence in fuel cell technology innovation and commitment to ESG [environmental, social and governance] initiatives."

Lee Sweetland, vice-president of transformational projects, added: "Our three-by-three stack cost reduction has already validated a lower-cost and higher-quality flexible graphite that enables a 35-per-cent reduction in plate thickness and a 45-per-cent reduction in raw materials. With stack power densities for our flexible graphite stacks now achieving over four kilowatts per litre, further investment in next-gen manufacturing processes is forecasted to drive an additional 70-per-cent cost reduction for our proprietary bipolar plates, and a clear path towards the U.S. Department of Energy's cost target of $5/kW for the bipolar plate."

Ballard expects to invest approximately $18-million in bipolar plate manufacturing from 2023 through 2025. Expected spending for this project in 2023 was included in Ballard's capital allocation plan for the period, and does not change guidance on planned capital expenditure for 2023.

About Ballard Power Systems Inc.

Ballard Power Systems' vision is to deliver fuel cell power for a sustainable planet. Ballard zero-emission PEM (polymer electrolyte membrane) fuel cells are enabling electrification of mobility, including buses, commercial trucks, trains and marine vessels, and stationary power.

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