Canadian fuel cell maker Ballard Power expects that China will become the largest hydrogen and fuel cell vehicle market in the mid- to long-term, chief executive Randy MacEwan said today.
Ballard is planning a factory in Shanghai's Jiading hydrogen port for the manufacturing of its membrane electrode assemblies, which will allow it to qualify as a local manufacturer in China, MacEwan said on the company's fourth quarter earnings call. But Ballard is deferring further spending in China for "as long as possible" as it waits for more clarity on the country's hydrogen policies, MacEwan said.
"We continue to be disappointed with the delayed adoption in the China market," he said. Ballard received $133mn worth of orders in 2022, of which 70pc came from Europe, and a quarter from the US, with China representing one of the smallest proportions of its revenue as a result of its Covid-19 restrictions and a slow rollout of fuel cell vehicle subsidies, MacEwan said.
"I do think there'll be more policy clarity in 2023, in part in response to what I view as a really emerging competitive dynamic between the US, Europe and China," he continued. "I think we're going to see continued progress on the policy front on all three of these markets."
Ballard is keen on the fuel cell bus market, having received 250 purchase orders for bus modules in 2022, MacEwan said. Buses are the most mature of the markets the company is targeting, but freight locomotives, marine and stationary power applications will have larger power requirements constituting larger orders down the line, MacEwan said.
Ballard reported a loss for 2022 of $172.5mn, from a loss of $114.2mn in 2021.
