Hyzon Motors Commences Production of Fuel Cell Modules in the US; Decides to Withdraw from European Market

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Hyzon Motors has announced its plans to begin series production of its 200-kW fuel cell modules for trucks in the second half of 2024. The majority of production will be based in the United States, as the company shifts its focus away from the European market in order to optimize its use of limited capital resources.

Hyzon’s Strategic Shifts

While pulling out of Europe, Hyzon is actively seeking a local fulfillment partner to utilize its fuel cell stacks. This strategy is consistent with its existing partnerships in the USA and Australia/New Zealand. The company has already successfully delivered a hydrogen-powered waste collection truck to Remondis. Producing fuel cell modules in the USA offers strategic advantages due to available subsidies and proximity to the MACH2 project aligned with the Department of Energy’s hydrogen hub program.

Resolving Past Issues

Hyzon has also reached a resolution with the SEC, agreeing to a $25 million settlement to be paid in installments. This settlement concludes the accounting scandal left behind by the previous board of directors. With a strong cash position and reduced monthly cash burn, Hyzon is well-prepared for the ramp-up of module production.

Future Prospects

In addition, Hyzon plans to introduce new 300-kW fuel cell stacks for stationary energy supply in data centers and hospitals. This involves extending its IP license agreement with parent company Horizon. CEO Parker Meeks emphasizes the advantages of fuel cell trucks over battery-electric trucks, particularly for heavy transportation and uphill driving. The company is also considering capital measures such as issuing new shares or bringing in a strategic partner. Hyzon presents an exciting yet speculative investment opportunity alongside other fuel cell vehicle companies like Ballard Power and Nikola Motors.