Shares of Ballard Power Systems (NASDAQ:BLDP) are up more than 8% in pre-market trading Thursday morning after the fuel cell company announced a partnership with Ford Motor Company (NYSE:F).
Ballard announced that they have signed a letter of intent (LOI) to provide Ford with a fuel cell system for their trucks, marking a significant step in the development of a hydrogen fuel cell-powered vehicle prototype. The partnership includes an initial purchase order for 2 FCmove™-XD 120 kW fuel cell engines that are planned to be delivered by Ballard to Ford Trucks in 2023.
“We are thrilled to be partnering with Ford Trucks to facilitate market adoption in Europe. We look forward to validating Ballard as their preferred fuel cell supplier and to support the integration of their heavy-duty truck platform,” said David Mucciacciaro, Ballard Chief Commercial Officer.
As part of the project, Ford intends to create an FCEV (Fuel Cell Electric Vehicle) named F-MAX. The plan involves integrating 120 kW FCmove-XDTM fuel cell engines into Ford Trucks' F-MAX 44-ton long-haul tractor truck. The Detroit-based automaker's strategy includes manufacturing and assembling the fuel cell-powered F-MAX in Turkey and initiating European Ten-T corridor demonstrations by 2025, aligning with the objectives of the European Union's Horizon Europe ZEFES (Zero Emission Freight EcoSystem) project.
Under the terms of the LOI, if the development program is successfully completed and certain other conditions are met, Ballard could potentially be designated as the preferred supplier for the serial production of the fuel cell-powered F-MAX.
“At Ford Trucks, we invest in alternative technologies that will define the automobile industry's future in accordance with our sustainability aims. Electrification, followed by hydrogen technology, is one of our top priorities. Our first Fuel Cell Electric-powered Vehicle F-MAX, which we will develop as part of the ZEFES project, will be a significant milestone. We are thrilled to be working with Ballard on this critical project. This long-term relationship will generate enormous value in the future. We have a wide range of promising technological talents and capabilities, and our work is progressing quickly and successfully. As Ford Trucks, we will continue to pioneer future sustainable transportation technologies with R&D investments,” said VP of Ford Trucks, Emrah Duman.
Shares of BLDP are up 7.84% while F is trading down 0.15% in pre-market trading Thursday morning.