Ceres Power Holdings plc has signed a manufacturing licence agreement for the production of Ceres' proprietary solid oxide fuel cell technology with Weichai Power ("Weichai"), a global original equipment manufacturer ("OEM") and power systems developer headquartered in Shandong, China. Builds upon a strong, existing commercial relationship with Weichai - Weichai will now manufacture cells and stacks for their stationary power systems. This agreement supersedes existing agreements with Weichai. Further expands Ceres global manufacturing partner portfolio to four.
Significant revenue and cash generation - licence fees, milestones and royalties are consistent with previous Ceres manufacturing licensing agreements. Weichai intends to establish a manufacturing facility to produce cells and stacks for the stationary power markets supported by key components supplied from Ceres, targeting power for AI data centres, commercial buildings and industrial applications. SOFC systems will complement Weichai's existing product portfolio for power generation, including gas engines and powertrains.
Given the timing of the agreement, revenue recognition for the licence fees are likely to be booked in Fiscal26 so 2025 Group revenues will remain as previously guided.
