Chinese fuel cell maker eyeing deal with SPAC for $1bn US listing

- Advertisement -


A Chinese supplier of hydrogen used in fuel cell vehicles is considering debuting on the NASDAQ early next year through a merger with SPAC that would bring its listing valuation to $1 billion.

- Advertisement -

If the deal with its unnamed admirer goes through, Shenzhen State Fuel Cell Corporation (SFCC) will be the latest in a long line of electric vehicle companies that have taken the shortcut to an IPO.

- Advertisement -

The transaction takes place when companies choosing the SPAC route face growing scrutiny there are so many electric car companies in the US that have gone public in the last two years. not very goodleading to the US Securities and Exchange Commission (SEC) launching an investigation into allegations of misleading shareholders.

Promising companies including Nikola, Lordstown Motors and Faraday Future have been forced to cut forecasts and plans after allegations that they misled investors with unrealistic forecasts.

- Advertisement -

In March, the SEC proposed new guidelines for monitoring these transactions.

SFCC which provides fuel cell system for commercial vehicles made by several Chinese companies, said it expects strong revenue growth this year. The company is working with local governments to build hydrogen filling stations for commercial vehicles.

A fuel cell vehicle is a type of electric vehicle that runs on a mixture of hydrogen fuel and oxygen. This technology, which has been in and out of fashion over the past decade for passenger cars, has not been widely adopted in the US due to the lack of charging infrastructure, but is becoming more popular for buses and heavy-duty vehicles.

But China, the world’s largest hydrogen producer and third largest FCV market after Japan and South Korea, is keen to supply 1 million FCVs on the road by 2035.

Toyota, Honda and other global automakers have also invested in research and development to bring fuel cell vehicles to market.


Credit: techcrunch.com /

- Advertisement -

Stay on top - Get the daily news in your inbox

DMCA / Correction Notice

Recent Articles

Related Stories

Stay on top - Get the daily news in your inbox