The recent news of a strategic partnership between Canadian clean energy company Ballard Power Systems and Weichai Power Co., Ltd. has attracted significant attention. It is reported that Weichai Power will invest US$163 million to acquire a 19.9% stake in Ballard, becoming its largest single investor.
Meanwhile, the two companies will establish a joint venture in Shandong, with Weichai Power holding 51% and Ballard holding 49%, to develop and produce hydrogen fuel cell power system products for the Chinese market. The joint venture will also have exclusive rights in the Chinese market to Ballard's next-generation fuel cell stack and module technologies.
Weichai Power's significant investment in fuel cell technology has attracted widespread attention and discussion within the industry. Some industry insiders believe that Ballard has been deeply involved in the fuel cell field for nearly 30 years and possesses globally leading technology. If Weichai Power's cooperation with Ballard can successfully transfer cutting-edge technology and integrate global resources, it will significantly boost the domestic fuel cell electric vehicle market and the new energy vehicle industry.
However, another concern has prompted reflection within the industry: can the core technologies for fuel cells truly be acquired through purchase?
Several industry insiders said that, looking back at Ballard's many collaborations with Chinese companies since 2013, whether it was the transfer of labor-intensive technologies such as module assembly or the transfer of high-tech technologies such as bipolar plate and fuel cell stack production, Ballard has always kept its core "membrane electrode technology" in its own hands and has not opened it up to the outside world.
"There are two key core component technologies in fuel cell stacks: bipolar plates and membrane electrode assemblies," said a relevant person in charge of the China Association of Automobile Manufacturers. Regarding bipolar plates, Guangdong Guohong Hydrogen Energy Technology Co., Ltd. had previously spent US$20 million to purchase them, and its production line with a capacity of 10,000 units has been built and is in full production. The product quality has met Ballard's quality control requirements.
Regarding the "membrane electrode assembly" (MEA), it's essentially the chip of a fuel cell. Currently, both Guohong Hydrogen Energy and Weichai Power have adopted a procurement model from Ballard, but have not obtained authorization for Ballard's core MEA technology. Therefore, the problem of being dependent on others remains. Consequently, the importance of independent control over core technologies is self-evident in breaking through the development bottlenecks of fuel cells.
"It's worth noting that Ballard's technology transfer strategy is 'multiple licensing,' meaning it licenses the same product to multiple companies," said an analyst from China Investment Consulting. For example, the HD-85 85kW module has been licensed to four Chinese companies: Guohong Hydrogen Energy, Dayang Electric, Nantong Zehe, and Bikong Hydrogen Energy; the 30/60kW modules have been licensed to two Chinese companies: Guohong Hydrogen Energy and Dayang Electric. "This easily leads to price wars among these companies, while Ballard can maintain a stable income through component sales and patent royalties."
According to Ballard's official data, the company has collaborated with Chinese companies multiple times since 2013, generating at least $440 million in revenue. This revenue comes from technology licensing, equity investment, module sales, and membrane electrode sales. Of this, $168 million was from technology licensing, covering products such as exclusive fuel cell stack licenses, base station backup power supplies, 85kW fuel cell modules, and 30/60kW fuel cell modules.
According to experts, Weichai Power's acquisition of Ballard's exclusive production rights for the "next-generation LCS stack" and the license to assemble LCS fuel cell modules is a significant step. However, the "next-generation LCS stack" technology is not yet fully developed and is expected to be officially released by the end of 2019. Compared to the existing 9SSL stack, this technology offers substantial improvements in performance, lifespan, and cost.
“Previously, Guohong Hydrogen Energy’s joint venture had invested heavily in purchasing Ballard’s previous-generation 9SSL fuel cell stack production technology. Therefore, the introduction of the new technology will impact manufacturers that have already purchased the older technology, making it difficult for Guohong Hydrogen Energy’s 9SSL products to compete with domestic counterparts,” said an executive of a new energy vehicle company. He added that Guohong Hydrogen Energy’s joint venture has a five-year exclusive membrane electrode supply agreement with Ballard, totaling at least $150 million, and is obligated to purchase a minimum quantity of membrane electrodes for the next five years. “Whether the predicament Guohong Hydrogen Energy faces today will become the problem Weichai-Ballard joint venture will face tomorrow is worth considering.”
Therefore, regarding core technologies, domestic companies need to maintain R&D investment and accelerate the localization of key technologies while managing relationships with advanced technology partners, gradually breaking free from the predicament of being dependent on others for core technologies. Only when my country's fuel cell core technologies are independent, self-reliant, and self-strengthening can the domestic fuel cell industry break through its constraints and achieve greater development.
