Ballard signs fuel cell IP deal with Volkswagen Group
Vancouver, Canada / Ingolstadt, Germany - Ballard Power Systems announced that the Company has entered into a Technology Solutions transaction with Volkswagen Group (Volkswagen AG and Audi AG) for an aggregate amount of approximately US$80 million for the transfer of certain automotive-related fuel cell intellectual property (IP) and a two-year extension of an engineering services contract.
Transfer of Automotive-Related IP Ballard will transfer the automotive-related portion of fuel cell IP assets previously acquired from United Technologies Corporation, in return for payments from Volkswagen Group totaling US$50 million, a majority of which is expected to be received at the closing of the transaction during the current quarter. The remainder is expected to be received in early 2016. Ballard will retain a royalty-free license to utilize the IP transferred to Volkswagen Group in bus and non-automotive applications as well as for certain limited pre-commercial purposes in automotive applications.
Extension of Engineering Services Contract The transaction also includes a 2-year extension, through March 2019, of the existing long-term engineering services agreement signed by Ballard and Volkswagen in 2013. This extension has an incremental value estimated at C$30-50 million (approximately US$24-40 million). Over the full 6-years, the contract has an estimated value of C$100-140 million (approximately US$80-112 million), and also includes a further optional 2-year extension. Ballard's ongoing engineering services contract with Volkswagen Group involves the design and manufacture of next-generation fuel cell stacks for use in the demonstration car program. Ballard engineers are leading critical areas of fuel cell product design - including the membrane electrode assembly (MEA), plate and stack components - along with certain testing and integration work. Volkswagen Group's commitment to, and progress in, fuel cell car development was underscored last November at the LA Auto Show, where fuel cell concept cars representing Volkswagen and Audi brand models were introduced: Golf SportWagen HyMotion, Passat HyMotion and Audi A7 Sportback h-tron quattro.
Mr. MacEwen added, "Ballard's Technology Solutions group is helping customers accelerate fuel cell development through the application of our world-class, customized engineering services capability, along with access to our deep IP portfolio and related know-how. This transaction with Volkswagen marks a milestone in the growth and delivery of Ballard Technology Solutions."
Source: IWR Online, 12 Feb 2015