By Glenn Johnson


Ballard Power Systems Inc. plans to spend $130 million on new manufacturing facilities in China to support fuel-cell production.

The Canadian company on Friday said it entered into an investment agreement with local Chinese officials to establish a new China headquarters at the Jiading Hydrogen Port, one of the country's largest automotive manufacturing locations, in Shanghai.

Ballard said it will spend that money over the next three years to build a membrane electrode assembly, or MEA, facility, as well as a research and development center. The project will enable annual production of about 13 million MEAs, which will supply about 20,000 engines, Ballard said.

The facility is expected to be in operation in 2025 to meet future market demand in China for the bus, truck and forklift markets, the company said. The facility will also include space to assemble approximately 600 engines annually to support the production and sale of Ballard engines in the rail, marine, off-road and stationary markets.

Vancouver-based Ballard also said it signed a non-binding memorandum of understanding where Weichai Power Co. will make an equity investment that will give it ownership of 2% of Ballard's new MEA manufacturing company.

Ballard's shares were up 1% in early trading at C$8.45. They have fallen 47% so far this year.


Write to Glenn Johnson at glenn.johnson@wsj.com


(END) Dow Jones Newswires

09-30-22 1016ET