China’s leading fuel cell producer managed to cut price by 83% in last 3 years
Sino-Synergy Hydrogen Energy, a major China’s fuel cell stack and fuel cell system producer, announced that it plan to be a list company in Hongkong equity market and submitted its IPO documents to Hongkong Exchanges by the end of 2022.
According to these documents, the average selling price of the company’s fuel cell system was 15.2 Rmb/w, 10.4 Rmb/w, 4.9 Rmb/w, and 4.1 Rmb/w for the year of 2019, 2020, 2021 and 1H2022 respectively (or $2.17/w, $1.49/w, $0.7/w, and $0.59/w respectively). That means the company managed to cut the fuel cell system price for 83% in the past 3 years.
These data clearly showed two facts about China’s fuel cell market: First, the competition of China’s fuel cell market is intensifying. According to latest industry survey, there were over 140 companies engaged in fuel cell business in China, while before 2018, the number was 30. Second, the localization of whole fuel cell supply chain is accelerating, Chinese companies used to rely on foreign suppliers for key components such as MEM, while Chinese domestic companies are catching up with the trend and they could supply most of these key components, the quality of their products is also improving dramatically. These facts lead to the fast dropping of fuel cell system cost.
Looking ahead, China’s fuel cell market will continue to be driven by applications expansion and cost reduction. There is no wonder that more and more Chinese fuel cell companies are heading for capital market to support their ambitions.
More data and analysis about China’s fuel cell market, please see our proprietary report-China Fuel Cell Market Report 2022.