In a recent agreement, Bosch, the renowned German engineering and technology company, will assume control over the manufacturing of PowerCell’s S3 fuel cell stack. The deal entails Bosch integrating the S3 into its production facilities in Germany and delivering fully assembled 100 kW stacks to PowerCell’s plant located in Gothenburg.
The outsourcing of production allows PowerCell to focus on the expansion of fuel cell system assembly and delivery, as well as the development of the next generation of fuel cell stacks. While the specific financial benefits for PowerCell remain undisclosed in the announcement, the Swedish company has chosen not to provide any financial details.
This collaboration between the two companies dates back to April 2019, when they joined forces to industrialize, produce, and distribute the PowerCell S3. As part of the agreement, Bosch obtained exclusive rights to manufacture and sell the PowerCell S3 for automotive applications, while PowerCell retained full rights for all other segments and applications.
One such segment is the aviation sector, as demonstrated by a 2022 agreement between PowerCell and ZeroAvia. PowerCell committed to supplying 5,000 fuel cell stacks to ZeroAvia starting in 2024. With the new arrangement, Bosch will now handle the assembly of these stacks in Germany. PowerCell intends to utilize these fuel cell stacks to build segment-specific fuel cell systems for marine, aviation, power generation, and off-road customers.
The announcement refrains from disclosing the specific Bosch plant responsible for the production. However, it is worth noting that Bosch already manufactures fuel cell stacks from the previous agreement at its Bamberg site. Previous statements from Bosch revealed their aim to achieve gigawatt-scale capacity by the mid-2020s. It remains unknown whether the capacity in Bamberg will be sufficient to handle the PowerCell orders, as the current communication does not indicate any investment plans for expansion.
Richard Berkling, CEO of PowerCell, expressed enthusiasm about the agreement, stating, “The agreement with Bosch significantly increases our production capacity and gives us the opportunity to effectively meet the rapidly increasing demand for our leading hydrogen electric solutions. We continue to create value for our customers through leading products, innovation, and the development of the next generation of fuel cell stacks.”
Thomas Wintrich, SVP of Business Unit Fuel Cell Mobility Solutions at Bosch, emphasized the positive outcome of their longstanding collaboration, saying, “The supply agreement is one of the results from multiple years of good collaboration between Bosch and PowerCell. It supports our goals for an emission-free mobility and contributes to the development of Bosch fuel cell technology in Europe. We are happy to support PowerCell with our scaled-up manufacturing capabilities.”
