PowerCell receives follow-on order from Chinese automotive supplier

PowerCell receives follow-on order from Chinese automotive supplier

PowerCell Sweden AB has received a follow-on order for its PowerCell S2 fuel cell stacks worth SEK 1.3m (€122,000).

The S2 fuel cell stacks, ordered by a Chinese automotive supplier, will be integrated in fuel cell systems for use in vehicles by one of the supplier’s customers.

“China has tried to electrify its automotive fleet with battery technology but has concluded that it is not a viable option in country where a large part of the population lives in apartment buildings in mega-cities,” said Per Wassén, CEO of PowerCell.

“In addition to the problem of how to build enough charging stations, the Chinese have come to realise that grid capacity is a bottle neck when the total proportion of battery electric vehicles becomes too high.”

“This is a development the west will experience as well and that makes hydrogen and fuel cells the only long-term viable alternative for the needed electrification of the automotive sector.”

China currently has the largest population of battery electric vehicles in the world, but recent decisions to phase out government subsidies for battery electric vehicles and introduce large subsidies for vehicles powered by fuel cells has seen the demand for electric vehicles in China has dropped substantially.

According to the China Association of Automobile Manufacturers, domestic sales of battery electric vehicles dropped by 80,000 in July (2019).

The order will be delivered during the third quarter (2019).

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