VANCOUVER, May 1, 2019 /CNW/ - Ballard Power Systems
(NASDAQ: BLDP; TSX: BLDP) today announced that it has reached
agreement with Weichai Ballard Hy-Energy Technologies Co., Ltd.
("Weichai-Ballard JV") for the supply of a mix of certain fuel cell
products and components that will be used in the assembly of
modules to power zero-emission fuel cell electric vehicles (FCEVs)
in China. The order will have a
total value of approximately $44
million to Ballard.
Once assembled by the Weichai-Ballard JV, final modules will be
sold to Weichai Power Co., Ltd. ("Weichai") to support initial
deployments against Weichai's commitment to supply a minimum of
2,000 fuel cell modules for commercial FCEVs in China. All products and components to be
supplied by Ballard, as well as related applications engineering
support, are planned for delivery in 2019 and 2020, and will be
based on Ballard's next-generation LCS stack technology.
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 closed a strategic collaboration transaction with
Weichai in November 2018. The
transaction includes: (i) an equity investment by Weichai in
Ballard in the amount of approximately $163.6 million, representing a 19.9% interest in
the company; (ii) establishment of a joint venture company in
Shandong Province, in which
Weichai owns 51% and Ballard owns 49%, to support China's FCEV market, along with $90 million in technology transfer payments from
the Weichai-Ballard JV to Ballard; and (iii) Weichai's intent to
support the deployment of at least 2,000 commercial FCEVs by 2021,
using Ballard technology.
Established in 2002 and with listings on the Hong Kong and Shenzhen stock exchanges,
Weichai Power Co., Ltd. is a leading automotive and equipment
manufacturer specializing in the production of powertrains,
automobiles, intelligent logistics, automotive parts and
components. In 2017 Weichai manufactured more than 617,000 engines,
149,000 heavy duty trucks and 200,000 forklift trucks, and
generated total revenue of 151.57 billion
RMB (approximately $22.7
billion), with an employee base of 74,474 people.
About Ballard Power Systems
Ballard Power Systems
(NASDAQ: BLDP; TSX: BLDP) provides clean energy products that
reduce customer costs and risks, and helps customers solve
difficult technical challenges or address new business
opportunities. To learn more about Ballard, please visit
www.ballard.com.
This release contains forward-looking statements concerning
anticipated development results and impacts on our products. These
forward-looking statements reflect Ballard's current expectations
as contemplated under section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Any such forward-looking statements are based on Ballard's
assumptions relating to its financial forecasts and expectations
regarding its product development efforts, manufacturing capacity,
and market demand.
These statements involve risks and uncertainties that may cause
Ballard's actual results to be materially different, including
general economic and regulatory changes, detrimental reliance on
third parties, successfully achieving our business plans and
achieving and sustaining profitability. For a detailed discussion
of these and other risk factors that could affect Ballard's future
performance, please refer to Ballard's most recent Annual
Information Form. Readers should not place undue reliance on
Ballard's forward-looking statements and Ballard assumes no
obligation to update or release any revisions to these forward
looking statements, other than as required under applicable
legislation.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy securities. The Ballard
Common Shares have not been registered under the United States
Securities Act of 1933, as amended, or the securities laws of any
other jurisdiction and may not be offered or sold in the United States absent registration or an
applicable exemption from registration requirements.
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SOURCE Ballard Power Systems Inc.