VANCOUVER, BC, Sept. 21, 2020 /PRNewswire/ - Ballard Power
Systems (NASDAQ: BLDP) (TSX: BLDP) today 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 1 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 CEO. "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 1 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% of global GDP – that
have announced hydrogen strategies or roadmaps 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
refueling. 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. ("Weichai;
https://en.weichaipower.com/) in November
2018, which included the establishment of a joint venture –
owned 51% by Weichai and 49% 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% 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 September 29, 2020, with further details
available here.
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, passenger cars, forklift trucks and
UAVs. To learn more about Ballard, please visit
www.ballard.com.
This release contains forward-looking statements concerning
future events or developments, including the closing of the
announced transaction, the performance of the joint venture,
anticipated product development efforts and product performance,
customer benefits and market demand for 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, performance risks related to existing joint venture
and partners, 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.