Hydrogen power firm AFC Energy has inked a landmark supply deal with a German manufacturer that investors will hope will jolt the firm back into life after three years of stark decline.
The Aim-listed green energy specialist, which makes fuel cell technology used in EV charging and data centres, signed the multi-year agreement with Zollner Elektronik that will see the German firm manufacture take responsibility for much of the manufacturing process.
This will include wiring and looms, electrical panel and boards, stack integration and module factory acceptance testing, the firms said.
Zollner is one of Europe’s largest electronics manufacturers, operating across seven sectors and four continents, and its involvement in making AFC Energy’s cells will be “critical” in helping it scale up, the Surrey-based firm said.
Adam Bond, AFC Energy’s chief executive, said: “We are very proud to be working with Europe’s leading mechatronics manufacturing partners in Zollner.”
Our strategy of leveraging the scale up manufacturing expertise of contract manufacturers has long been the core of our future product readiness and with such high demand for Zollner’s services, we are extremely pleased to see alignment of our two companies and the complimentary opportunities that we are able to pursue in partnership.”
Investors will hope the new deal gives the firm the shock therapy it needs to stem heavy losses and a rapidly declining share price.
Its stumbling performance has been reflected in the share price, which is down 81 per cent on its all time high posted in early 2021.
But green shoots of recovery are beginning to emerge, with its stock price picking up 47 per cent since its nadir half-way through last year.