Ceres Power Signs SOFC Power Supply Production License Agreement with Weichai

On November 5, Ceres Power Holdings plc, a global leader in clean energy technology development, signed a production license agreement with Weichai Power, a global original equipment manufacturer and power system developer based in Shandong, China. Weichai will obtain the rights to produce Ceres' proprietary solid oxide fuel cell (SOFC) technology, marking a further deepening of their collaboration.

It is understood that this agreement will replace the existing agreement between the two parties. Weichai will produce batteries and battery packs for its stationary power systems, expanding Ceres' global manufacturing partner portfolio to four. The licensing fees, targets, and royalties associated with the agreement are consistent with Ceres' previous manufacturing license agreements and are expected to generate significant revenue and cash flow. Considering the timing of the agreement, revenue recognition from licensing fees is likely to be recorded in fiscal year 2026, while the group's revenue for 2025 remains consistent with previous guidance.

According to the plan, Weichai is expected to establish a manufacturing facility to produce batteries and battery packs for the stationary power supply market. The products will be supported by key components provided by Ceres, with target applications including artificial intelligence data centers (AIDC), commercial buildings, and industrial applications. The SOFC systems will complement Weichai's existing power generation portfolio, which covers gas engines and powertrains, among others.

Phil Caldwell, CEO of Ceres, stated that he is pleased to expand the relationship with Weichai through the manufacturing license for Ceres-based products in China, further extending the technology ecosystem. He noted that Weichai is a leading supplier of traditional gas engines in China and internationally. The collaboration not only serves as recognition of Ceres' technology but also presents significant business opportunities for both companies. Currently, there is urgent demand for power systems in areas such as AIDC, industrial power needs, grid reinforcement, and commercial buildings. Ceres' highly efficient SOFCs can be rapidly deployed, representing a multi-billion dollar market opportunity and positioning Ceres to become the industry standard in solid oxide technology.