Weichai, Bosch and Ceres strategic collaboration
CWR.L
9 February 2022
Ceres Power Holdings plc
Weichai, Bosch and Ceres plan strategic collaboration for the Chinese market
Horsham, UK: Ceres Power Holdings plc ("Ceres", the "Company") (AIM: CWR.L), a global leader in fuel cell and electrochemical technology, announces that non-binding Heads of Terms have been signed setting out plans for a three-way collaboration with Weichai Power ("Weichai") and Robert Bosch GmbH ("Bosch") to access the substantial opportunities that exist for fuel cell technologies in China.
The addition of Bosch to the existing Weichai and Ceres partnership, and an increase in scope to include stationary power applications, significantly strengthens the planned joint venture. It is now intended that two separate Joint Ventures ("JVs") will be formed in Shandong Province, specifically:
· A three-way system JV ("System JV") will be set up for the development and manufacture of solid oxide fuel cell (SOFC) systems. Bosch and Ceres will licence their respective SOFC system IP to the JV for mobile and stationary applications in China and will share royalties from the sale of products. Weichai will be the majority shareholder. Ceres will hold a maximum 10% share with Board representation. Its investment over time is likely to be around £20 million, to be finalised in the detailed agreements.
· Separately, a stack manufacturing JV ("Stack JV") will be established to supply fuel cell stacks to the system JV and potentially other third parties. The Stack JV would be the second manufacturing facility for Bosch and is planned to follow its initial 200MW facility in Germany, where start of production is anticipated for 2024. Bosch and Weichai intend to form the JV with Bosch as the majority shareholder. Ceres will not be a shareholder in this JV but will provide the SOFC technology through an extension of Bosch's existing manufacturing licence to supply the Chinese market. Ceres will receive royalties from this JV on the sale of stacks.
License fees of £30 million from the System JV and Stack JV to Ceres are expected over the next three years in line with those agreed in the original Weichai-Ceres agreement in 2018, with minimum payments and annual royalties receivable following start of production from each of the JVs. Detailed agreements are now being prepared, with the JVs intended to be formed following the signing of definitive contracts.
Phil Caldwell, Chief Executive Officer of Ceres: "This exciting collaboration represents an important step in Ceres' ambitions for the Chinese market and a critical part of delivering global manufacturing capacity for our technology. We have every confidence in our partnership with Weichai and with the addition of Bosch's expertise in industrialisation and manufacturing have the potential to establish one of the strongest partnerships in the fuel cell industry."
Ends
Analyst presentation
Ceres Power Holdings plc will be hosting a live webcast for analysts and investors on 9 February 2022 at 10.00 GMT. To register your interest in participating, please go to: https://www.investormeetcompany.com/ceres-power-holdings-plc/register-investor
For further information visit www.ceres.techor contact:
Ceres Power Holdings plc Elizabeth Skerritt
| Tel: +44(0)7932 023 283 |
Investec Bank PLC (NOMAD & Joint Broker) Jeremy Ellis/ Patrick Robb/ Ben Griffiths
| Tel: +44 (0)207 597 5970 |
Berenberg (Joint Broker) Ben Wright/ Mark Whitmore
| Tel: +44 (0)203 207 7800 |
Madano (Financial PR) Harry Spencer/ Will Hyslop
|
Tel: +44(0)7808 885 557/ +44(0)7918 880 591 |
About Ceres Power
Ceres is a world-leading developer of electrochemical technologies: fuel cells for power generation, electrolysis for the creation of green hydrogen and energy storage. Its asset-light, licensing model has seen it establish partnerships with some of the world's largest engineering and technology companies, such as Weichai in China, Bosch in Germany, Miura in Japan, and Doosan in Korea, to develop systems and products that address climate change for power generation, transportation, industry, data centres and everyday living. Ceres is listed on the AIM market of the London Stock Exchange ("LSE") (AIM: CWR) and is classified by the LSE Green Economy Mark, which recognises listed companies that derive more than 50% of their activity from the green economy.
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