Despite oversupply concern, Chinese electrolyzer producers continue building capacities

China now arguably controls world electrolyzer manufacturing capacities, especially alkaline electrolyzers, with over 50 per cent global nominal capacities located in China by the end of 2023. Some industry experts and analysts have noticed the oversupply risk of China’s electrolyzer sector; BNEF warned that China will have over 40GW electrolyzer production capacity by the end of 2024, which alone far exceeds foreseeable global demand of around 10GW in 2025.

However, latest developments shows that Chinese electrolyzer producers didn’t halted their expanding pace-at least five companies have announced inauguration of new plants or beginning of construction of GW scale production facilities just within first two months of 2024. Through these cases, we may realize that even the most aggressive forecasts by world leading consultancies may underestimate the capacity building of China’s electrolyzer sector. Here are the details: