Under a new manufacturing licence agreement, Weichai will produce cells and stacks for stationary power uses such as AI data centres, commercial buildings, and industry.

Weichai is already a major shareholder in Ceres after a £17m investment in 2018. The Shandong-headquartered firm had originally planned to enter a joint venture with Ceres and Bosch, which fell through in 2024.

However, Weichai has already been producing CE-marked SOFC systems based on Ceres’ stack technology, alongside operating a PEM fuel cell joint venture with Ballard, which has been placed on hold.

Ceres has not disclosed the value of the new licence agreement but expects to recognise revenue from the deal in the financial year 2026.

“We are excited to extend our relationship with Weichai with a manufacturing licence to produce Ceres-based products in China,” said Ceres CEO Phil Caldwell.

The announcement follows a strategy pivot from Ceres to focus on natural gas-fuelled SOFC deployments for stationary power markets, with green hydrogen production viewed as a long-term play.

Caldwell previously told investors delays for gas turbines and long lead times on nuclear and high voltage grid connections offered “a big opportunity” for the company, which it must respond to.

Ceres’ technology can run on both natural gas and hydrogen – with the former expected to fuel early operations.

In July, South Korea’s Doosan Fuel Cell became Ceres’ first licensee to start “mass production” of the technology when it launched a 50MW factory in Jeollabuk-do.

Competition in the stationary power fuel cell market is intensifying, as global players look to capitalise on growing AI-related power demand.