During its Q3 earnings call, CEO Marty Neese confirmed the company “will not pursue” the 3GW facility.
The decision follows earlier uncertainty over whether the project would secure Department of Energy (DOE) funding, after the US government cut 223 clean energy projects totalling $7.5bn across its grant programmes.
Neese, who was appointed CEO in July, explained, “Our analysis shows our existing global manufacturing capacity, with minor adjustments, will meet forecasted volumes.
“This decision underscores our commitment to capital discipline and focus on efficient execution.”
Ballard secured $94m in federal funding for the plant under the Biden Administration in 2024. However, sluggish demand led to Ballard postponing investment in the site, but it was able to “preserve” the grants.
The project had “remained on amber” until October, as the company shifted focus toward cost efficiency and optimisation within its existing footprint under a wider restructuring programme.
That process has seen Ballard cut operating expenses by 36% year-on-year and reduce cash operating costs by 40%.
Financially, the quarter showed the early effects of that restructuring.
During the quarter, the Canadian technology firm saw its revenue rise 120% year-on-year to $32.5m, with the bus and rail sector accounting for 70% of that income. It also recorded a net order intake of $19m.
Speaking to H2 View, Neese confirmed that the strongest near-term traction continues to come from the bus and rail segments in Europe and North America. He said that “hydrogen has a very strong role to play here” during its Q2 results.
Nevertheless, gross margin was only positive due to one-time benefits, while multiple customer orders have been pushed into late 2025 and early 2026, as Ballard seeks more sustainable contract terms.
Neese admitted there is much more to do to “further transform the company” towards cash flow positivity. “We are committed to this overarching goal,” he reiterated.
Discipline before expansion: Inside Marty Neese’s roadmap to rebuild Ballard
Ballard’s new CEO has called on employees to adopt the same relentless mindset as the company’s toughest global competitors, warning that without it, the fuel cell maker risks being outperformed.
With one restructuring programme complete, Marty Neese, now four months into the job, said the focus is on execution along three pillars: product–market fit, leverage-based cost control, and capital discipline.
Appointed in July, Neese served on Ballard’s Board of Directors for the past 10 years and was previously the CEO of US electrolyser manufacturer Verdagy. In his first Ballard earnings call, Neese told investors he aims to transform the firm into a “sustainable cash flow positive business” by the end of 2027.
With less than a year and a half to do it, Neese said the first job is to pinpoint what customers truly value, what they’ll pay for, and how Ballard’s portfolio can deliver – a discipline he said honed at Verdagy.
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