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Ballard Power Systems Announces Cost Reduction Plan and Disruptive Manufacturing Technology for Next-Gen Graphite Bipolar Plates

[Preston, United Kingdom , crocon media , msch , June 12 , 2023] — Ballard Power Systems, a leading provider of zero-emission PEM fuel cells, has unveiled its ambitious plan to significantly reduce costs and expand production capacity for next-generation graphite bipolar plates. This strategic move includes the introduction of disruptive manufacturing technology that aims to revolutionize the fuel cell industry.

The announcement comes as a natural progression following Ballard’s successful completion of two critical milestones: the development of thin flexible graphite bipolar plates and the expansion of its membrane electrode assembly (MEA) manufacturing capacity in Canada. As part of Ballard’s ongoing “3 by 3” stack cost reduction program, this project focuses on addressing the substantial cost associated with bipolar plates, which is the second-largest expense after MEAs in a fuel cell stack.

By implementing advanced plate manufacturing processes and incorporating new, lower-cost material suppliers, Ballard anticipates cost savings of up to 70%. These savings are expected to be realized following the commissioning of the project, which is slated for late 2025.

Ballard’s next-generation thin flexible graphite bipolar plates are designed to significantly reduce material usage while enabling high power density stacks. This feature is particularly critical for heavy-duty mobility applications where durability, reusability, and power density are paramount. Furthermore, graphite bipolar plates offer the added benefit of being the most cost-effective option at current and scaled volumes.

Beyond the cost savings associated with this project, Ballard’s plate manufacturing capacity is expected to increase approximately tenfold. This growth will be accompanied by improvements in graphite and resin material yield, as well as reduced production time. The company has also developed innovative manufacturing processes that enable full automation of bipolar plate production, resulting in enhanced quality throughput, reduced energy consumption, and the elimination of water usage. These advancements are poised to be replicated in any future expansion of Ballard’s global bipolar plate production footprint.

Mark Biznek, Chief Operating Officer of Ballard, expressed enthusiasm about the project, highlighting the economic and environmental value it brings. In addition to reducing costs and improving customer economics, the project aligns with Ballard’s commitment to sustainable practices by significantly reducing energy, water, and material resources.

Lee Sweetland, Vice President of Transformational Projects, emphasized the positive impact of the company’s previous cost reduction efforts and their contribution to the development of flexible graphite technology. By investing further in next-gen manufacturing processes, Ballard anticipates an additional 70% cost reduction for its proprietary bipolar plates, aligning with the US Department of Energy’s target of $5/kW for the bipolar plate.

Ballard plans to invest approximately $18 million in bipolar plate manufacturing from 2023 through 2025. The expected spending for this project in 2023 was already accounted for in Ballard’s capital allocation plan and does not affect the company’s planned capital expenditure for the year.

As a leader in fuel cell technology, Ballard Power Systems continues to drive innovation and sustainability in the industry. With its cost reduction plan and disruptive manufacturing technology, the company is poised to strengthen its position in the market and advance the adoption of fuel cells for a more sustainable future.

Note: This article is for informational purposes only and should not be considered as financial advice. Please conduct thorough research and consult with a professional before making any investment decisions.

Read the original press release : https://www.newswire.ca/news-releases/ballard-announces-plan-to-scale-production-amp-reduce-costs-of-next-generation-bipolar-plates-856089473.html?fbclid=IwAR0rlLUMjPyUkfI4s1JYYbncvC1k5dujL7RpWwTs4L-GYbtRMptv9tFmMqU

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Disclaimer
This article may contain forward-looking statements that are subject to risks and uncertainties. Readers are advised to refer to Ballard Power Systems’ most recent Annual Information Form for a detailed discussion of potential risk factors that could impact the company’s future performance.

All transactions are carried out by SiLLC, a private portfolio management assembly. This document is not an offer of securities for sale or investment advisory services. This document contains general information only and is not intended to provide general or specific investment advice. Past performance is not a reliable indicator of future results and targets are not guaranteed. Certain statements and forecasted data are based on current expectations, current market and economic conditions, estimates, projections, opinions, and beliefs of SiLLC and/or its members. Due to various risks and uncertainties, actual results may differ materially from those reflected or contemplated in such forward-looking statements or in any of the case studies or forecasts. All references to SiLLC’s advisory activities relate to The SiLLC Assembly International.

Ballard Power Systems: A Bright Future in the Hydrogen Fuel Cell Market

[Preston, United Kingdom , crocon media for TSA , msch , August 10 , 2023] — The hydrogen fuel cell industry is undergoing a significant transformation, and Ballard Power Systems (NASDAQ: BLDP) (TSX: BLDP) stands at the forefront of this change. The company’s recent Q2 financial results reveal a strategic shift towards the US and European markets, reflecting the growing potential of these regions in the hydrogen landscape.

Strategic Growth Amidst Challenges

Despite a 27% year-over-year decrease in total revenue, amounting to $15.3 million for the quarter, Ballard Power Systems has shown resilience and adaptability. The company’s Heavy Duty Mobility revenue saw a decline of 39%, primarily due to reduced revenues from bus, truck, and rail verticals. However, this was somewhat offset by an uptick in marine revenue. The Stationary revenue, which encompasses stationary power generation fuel cell modules, stacks, products, and services, witnessed a 6% decline, primarily attributed to reduced sales in Europe. Yet, this was balanced by higher stationary revenues in North America.

A Shift in Focus

The company’s strategic pivot towards the US and European markets is evident in their recent decisions. With an increasingly favorable hydrogen policy landscape in these regions, Ballard is accelerating its “local for local” global manufacturing plan. This move is particularly significant given the ongoing uncertainties in the Chinese hydrogen and fuel cell market. The company’s decision to reevaluate its MEA localization plan in China underscores its commitment to harnessing the potential of the US and EU markets.

Investing in the Future

Ballard’s commitment to innovation and growth is evident in its investment decisions. The company continues to prioritize technology and product development programs, product cost reduction initiatives, and advanced manufacturing. These investments are geared towards enhancing customer experience and securing platform wins. With a focus on driving product cost reduction and investing in next-generation fuel cell products, Ballard is well-positioned to lead the market in the coming years.

Promising Outlook

The latter half of 2023 is expected to be bustling for Ballard, with anticipated sequential quarterly revenue growth. The company’s order book is also set to support revenue growth in 2024. The Q2 results showcased an impressive Order Backlog of approximately $147.5 million, predominantly driven by increased orders from North America. Notably, the backlog from customers in Europe and North America now constitutes nearly 80% of the total backlog. Furthermore, the Power Products backlog has surged, marking an increase of over 140% compared to the previous year.

Conclusion

The future of hydrogen fuel cells is bright, and Ballard Power Systems is poised to play a pivotal role in this burgeoning industry. While challenges persist, the company’s strategic decisions, investments in innovation, and focus on key markets position it for sustained growth. As the hydrogen industry evolves, Ballard’s commitment to excellence and adaptability will undoubtedly drive its success in the global market.

Read the original press release : https://www.ballard.com/about-ballard/newsroom/news-releases/2023/08/09/ballard-reports-q2-2023-results

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Ballard announces global manufacturing strategy, including plan to invest $130 million in MEA manufacturing facility and R&D center in Shanghai, China

VANCOUVER, BC and SHANGHAI, Sept. 30, 2022 – Ballard Power Systems (NASDAQ: BLDP) (TSX: BLDP) announced today its strategy ‘local for local’ where it plans to deepen its global manufacturing footprint in Europe, the United States and China to support global market demand growth through 2030. As part of this strategy, Ballard has entered into an investment agreement with the Government of Anting in Shanghai’s Jiading District to establish its new China headquarters, membrane electrode assembly (MEA) manufacturing facility and R&D center at a site strategically located at the Jiading Hydrogen Port, located in one of China’s leading automotive industry clusters.

Ballard plans to invest approximately $130 million over the next three years, which will enable annual production capacity at the new MEA production facility of approximately 13 million MEAs, which will supply approximately 20,000 engines. Ballard expects to be able to achieve significant capacity expansion of this facility in future phases with much lower capital requirements. The facility will also include space to assemble approximately 600 engines annually to support the production and sale of Ballard engines in the rail, marine, off-road and stationary markets in China, as well as for certain export markets.

In 2021, Ballard completed its MEA manufacturing expansion in Canada, which is critical as the MEA is the core technology and limiting factor for Ballard’s global fuel cell engine production capabilities. With the new MEA capacity coming online in China, Ballard now expects its global MEA capacity to support total demand requirements through the second half of the decade.

This investment is expected to reduce MEA manufacturing costs, align with China’s fuel cell value chain localization policy, and position Ballard more strongly in the hydrogen fuel cell demonstration cluster regions and for the post-subsidy market.

The facility is planned to be in operation in 2025 to meet expected market demand in China, including from the Weichai-Ballard Joint Venture (WBJV) for the bus, truck and forklift markets, as well as other opportunities outside the WBJV scope. The annual production capacity of the Weichai-Ballard joint venture facility located in Weifang, Shandong is approximately 40,000 stacks and 20,000 engines.

“Our global manufacturing vision for 2030 is to have scaled ‘local for local’ manufacturing of leading fuel cell engines and components in our core regional markets of Europe, North America and China to support future industry growth patterns and volumes across our verticals. In the case of China, we already have volume manufacturing capacity for fuel cell engines, bipolar plates and stack assembly at our WBJV. With our continued high conviction on long-term scaled adoption in China of fuel cell electric vehicles for medium- and heavy-duty motive applications, we are now addressing long-term capacity in that market for our proprietary MEAs,” said Randy MacEwen, Ballard’s Chief Executive Officer. “We believe China is a market headed for a significant demand break-out as hydrogen infrastructure scales over the coming years and as our new MEA production facility comes online.”

“To be competitive in China requires investment in China,” commented Alfred Wong, Ballard China CEO. “This new MEA manufacturing facility will significantly reduce MEA production costs, improve China market access and meet long-term market demand, including providing MEA supply to our Weichai-Ballard JV. We are thrilled to be partnering with Anting, Jiading District, which has quickly become a key hydrogen technology hub in China.”

Ballard will also be setting up an R&D and innovation center at the same site. The center will be focused on MEA research to achieve key corporate technical advancements, support cost reduction initiatives, and engage the emerging China local supply chain for fuel cell materials and components.

Ballard also announced today that it has signed a non-binding memorandum of understanding with Weichai Power whereby Weichai Power plans to make an equity investment for 2% of Ballard’s new MEA manufacturing company.

About Ballard Power Systems

Ballard Power Systems’ (NASDAQ: BLDP; TSX: BLDP) 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, and stationary power. To learn more about Ballard, please visit www.ballard.com.

This release contains forward-looking statements concerning planned operations expansion in China, related investments, product cost and market impacts, and anticipated implementation timeline. 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.

SOURCE Ballard Power Systems Inc.

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Disclaimer
All transaction are carrying out by SiLLC, a private portfolio management assembly. This document is not an offer of securities for sale or investment advisory services. This document contains general information only and is not intended to represent general or specific investment advice. Past performance is not a reliable indicator of future results and targets are not guaranteed. Certain statements and forecasted data are based on current expectations, current market and economic conditions, estimates, projections, opinions and beliefs of SiLLC and/or its members. Due to various risks and uncertainties, actual results may differ materially from those reflected or contemplated in such forward-looking statements or in any of the case studies or forecasts. All references to SiLLC’s advisory activities relates to SiLLC Assembly International.