Ballard announces $54 million of additional funding support, bringing total U.S. federal funding to $94 million for Ballard's fuel cell Gigafactory in Texas

Core Insights - Ballard Power Systems has been awarded $54 million in investment tax credits from the U.S. Internal Revenue Service under the Qualifying Advanced Energy Project Tax Credit (48C) program, funded by the Inflation Reduction Act (IRA) [1] - The company plans to utilize these tax credits to support the construction of a new fuel cell Gigafactory in Rockwall, Texas, which is part of a broader strategy to enhance domestic clean energy supply chains [1][2] - The total federal funding for the Rockwall Gigafactory now amounts to $94 million, combining the recent tax credits with a previously announced $40 million grant from the U.S. Department of Energy [2] Investment and Production Plans - Ballard intends to invest approximately $110 million in Phase I of the Rockwall Gigafactory project from 2024 to 2027, net of the federal grants and tax credits [2][3] - The facility is expected to have an annual production capacity of 8 million membrane electrode assemblies (MEAs), 8 million bipolar plates, 20,000 fuel cell stacks, and 20,000 fuel cell engines, equating to 3 gigawatts of fuel cells [3] - The company aims to finalize the investment decision for the facility later in 2024, contingent on necessary approvals and documentation [3] Strategic Positioning - Ballard is positioned at the intersection of decarbonization, energy security, and technological change, with a focus on zero-emission fuel cell products [2] - The company is experiencing increasing customer interest and is committed to scaling production while reducing costs to meet market demands [2] - The Rockwall Gigafactory is part of a "local for local" global manufacturing strategy aimed at future growth and attractive financial returns [3]