Foton Motor, DEC Hydrogen strike deal for R&D, market promotion of fuel cell trucks

Shanghai (Gasgoo)- On July 17, Mr. Zhang Jianyong, Chairman of BAIC Group, visited Dongfang Electric Corporation ("DEC"), where Foton Motor, a subsidiary of BAIC Group, signed a cooperation agreement with Dongfang Electric (Chengdu) Hydrogen Technology Co., Ltd. ("DEC Hydrogen") for hydrogen business development.

Under the agreement, the two companies will collaborate to promote hydrogen fuel-powered products in the Beijing-Tianjin-Hebei region and Sichuan province. They will jointly develop hydrogen-powered heavy-duty trucks suitable for long-distance, cross-regional highways, as well as hydrogen vehicles for construction transport, such as muck and commercial concrete vehicles.

Additionally, the duo plans to establish joint hydrogen R&D centers in Beijing or Chengdu to develop hydrogen-fueled commercial vehicles tailored to specific regions and scenarios and to conduct new technology research for fuel cell systems in various applications.

BAIC Group, one of the major state-owned automobile groups in China, engages in the R&D and manufacturing of vehicles and components, as well as automotive trade services. DEC, a centrally managed key state-owned enterprise, is one of the world's largest energy equipment manufacturing groups.

During the visit, Mr. Zhang Jianyong introduced BAIC Group's recent production and business achievements, highlighting the complementary strengths of BAIC Group and DEC in the hydrogen energy industry chain. He expressed hope that the two companies would leverage their respective advantages to enhance cooperation in areas such as the capital city's ecological environment management, the construction of hydrogen energy demonstration city clusters, and the expansion of domestic and international markets.

On July 16, BAIC Group held its mid-year business operations meeting, reporting notable achievements in its commercial vehicle segment. Foton Motor sold 300,000 vehicles in the first half of 2024, with accelerated growth in its new energy vehicle business, which sold 16,000 units in this period. Additionally, Foton Motor's cumulative exports reached 79,000 units in the Jan.-Jun. period, marking a 30% year-on-year jump. During the same time span, BAIC Trucks optimized its network layout and promoted LNG products, achieving sales of over 2,600 units.