Under a financing agreement, CIMC Enric will fully fund the JV throughout 2026 in exchange for a “higher ownership share” in the CIMC-Hexagon JV.

Hexagon said the arrangement would help minimise its cash outflow while retaining operations and a market presence in China.

The company has not confirmed what the arrangement would see its stake reduced to, but it will retain the right to acquire its original ownership stake back.

Established in 2021, the JV manufactures Type 4 composite hydrogen cylinders, hydrogen fuel storage systems, and distribution modules in China for the Asian market. Hexagon positioned the JV as a vehicle to capitalise on increasing Chinese government support for hydrogen.

However, the effective sale comes after the Norwegian firm saw its 2025 revenues decrease 39% year-on-year due to “significantly lower activity in hydrogen infrastructure and hydrogen heavy-duty mobility.”

CEO Morten Holum said the agreement with CIMC Enric should be viewed as part of the company’s “ongoing portfolio review” and that it marked “an important step to further improve capital efficiency.”

Western players have faced sluggish demand for hydrogen solutions as project investment decisions drag on amid weak demand for high-cost clean molecules. China, on the other hand, has raced ahead, building up the largest installed green hydrogen capacity globally.

Hexagon reiterated that China still represented the “largest global market” for hydrogen mobility and infrastructure solutions.

The JV’s focus is currently on securing certification to sell into the Chinese market, while the two owners have agreed to simplify its structure to improve “cost efficiency, execution speed, and competitiveness.”