Ballard [Nasdaq: BLDP] is quietly moving forward with forging new alliances around the world. Or, more specifically, the company is building prototypes that are sure to lead to joint ventures and partnerships to commercialize stacks and modules and components for parts suppliers. I previously covered Ballard’s business relationship with Mahle. Now, Ballard has teamed up with compressor manufacturer Chart Industries, as well as Linamar, a Canadian automotive supplier with sales of USD 7.5 billion and over 26,000 employees. The aim of Ballard’s partnership with Linamar is to develop fuel cell powertrains for light commercial vehicles weighing up to 5 tons and for SUVs, and maybe other kinds of passenger cars in the future. Ballard might even consider forming a joint venture with a company such as Honeywell, to which the fuel cell maker sold its former subsidiary Protonex’ fuel cell drone program – but not before indicating plans for some type of future collaboration.
Weichai Power – intriguing prospects
Like all hydrogen and fuel cell stocks, Weichai Power’s has come under pressure since February. That doesn’t change the business’s bright prospects. Weichai [2338:HK] is turning a profit and is expanding its operations through joint ventures and strategic acquisitions. One example of this is Weichai’s recent purchase of a 45-percent ownership stake in Kion, the world’s second-largest forklift truck manufacturer. The deal, valued at EUR 3.5 billion, might even lead to the deployment of hydrogen and fuel cell systems in Kion’s next-generation forklift trucks. Like Bosch, Weichai owns part of CERUS. It also has an around 15-percent stake in Ballard Power, with which it runs a stack factory in China (a 51/49 partnership).
Ballard Power – takeover unlikely
The surprising takeover of the Canadian competitor Hydrogenics will also have a positive impact on Ballard Power’s stock market valuation: Both companies have been frontrunners in FC development for many years. Their activities overlap in rail vehicles and trucks. They are both absolutely tops: Hydrogenics with Alstom and Ballard with CRRC and Siemens. Ballard also has many other activities in the major markets of the future, such as the use of fuel cells in drones.