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Ballard Power Systems Inc
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Close 2020-09-18 C$ 20.99
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Ballard pleased with China's adoption of EV policy

2020-09-21 07:21 ET - News Release

Mr. Randy MacEwen reports


Ballard Power Systems Inc. has noted that China's government has announced a new official policy regarding fuel cell electric vehicles, or FCEVs, which is expected to support the adoption of FCEVs in selected demonstration regions in China.

"With a target to achieve one million fuel cell electric vehicles on China's roads by 2030, this new fuel cell policy sets a framework for the scaled adoption of FCEVs," said Randy MacEwen, Ballard president and chief executive officer. "We believe this new policy signifies the strategic importance China places on FCEVs both from a decarbonization perspective as well as a competitive industrial perspective. The new policy comes just as the Weichai-Ballard joint venture has been recently commissioned in Shandong province with annual manufacturing capacity in excess of one gigawatt of fuel cell stacks. We believe the Weichai-Ballard joint venture is well positioned to become a leading fuel cell stack and module platform in China -- the world's largest market for commercial trucks and buses."

Mr. MacEwen continued: "We are increasingly transitioning to a carbon-regulated world. With 66 countries announcing net zero carbon targets for 2050, there are now about 20 countries -- collectively representing approximately 70 per cent of global GDP -- that have announced hydrogen strategies or road maps as key planks of their decarbonization plans. As part of this movement policymakers and industry are prioritizing the decarbonization of medium- and heavy-duty motive applications, including bus, truck, rail and marine. Fuel cell technology offers a zero-emission technology pathway for these hard-to-abate mobility use cases that feature heavy payload and have requirements for long range and fast refuelling. We are pleased to see China's priority on stimulating the adoption of zero-emission commercial vehicles, including buses and trucks, using fuel cell technology. We are also pleased that the policy framework is set for the next four years."

Ballard's technology enjoys significant share of the approximately 7,200 FCEVs deployed in China to date. Ballard has been executing an aggressive market strategy since closing a strategic collaboration agreement with Weichai Power Co. Ltd. in November, 2018, which included the establishment of a joint venture -- owned 51 per cent by Weichai and 49 per cent by Ballard -- for the production and assembly of Ballard's next-generation fuel cell stacks and modules for use in China's bus, truck and forklift markets. Weichai also made an equity investment in Ballard, taking a 19.9-per-cent ownership position at that time. The joint venture is located in a newly constructed Weichai facility with approximately 225,000 square feet and has a staff of approximately 180 employees.

Ballard will provide more context on the new policy at its upcoming investor and analyst day 2020 on Sept. 29, 2020.

About Ballard Power Systems Inc.

Ballard Power Systems' vision is to deliver fuel cell power for a sustainable planet. Ballard zero-emission PEM fuel cells are enabling electrification of mobility, including buses, commercial trucks, trains, marine vessels, passenger cars, forklift trucks and UAVs (unmanned aerial vehicles).

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