The good thing about Ballard is that it is on track to tap different ends of the fuel cell market, ranging from power products to material handling to telecom backup. More importantly, the company will also benefit from the growing traction of fuel cell electric vehicles in the long run. If we take a closer look, Ballard has a lot of runway ahead of it that will help it …show more content…
For instance, last quarter, Ford received a license and supply agreement from Guangdong Synergy. As per this agreement, Ballard will be deploying approximately 300 buses in the cities of Foshan and Yunfu by 2017. This is in addition to its earlier deal worth $10 million to supply an initial consignment of 33 fuel cell buses, indicating that Ballard has gained a bigger order from this client.
Additionally, Ballard will be able to localize its module assembly in China, which will play a key role in bringing down the company’s costs and improve its margin profile.
Telecom backup power will be another growth driver
Additionally, Ballard Power is also tapping the anticipated growth in the telecom backup power segment in countries such as India. For instance, last quarter, Ballard received a purchase order for 50 ElectraGenTM-H2 direct hydrogen modules from the Aditya Birla Group for deployment in the Idea Cellular wireless telecom network in India.
This is good news for Ballard investors as India is a fast-growing market for telecom power. In fact, as shown in the chart below, telecom backup power will turn into a multi-billion dollar market going forward, with the Asia Pacific being a key growth driver. Hence, Ballard is on track to benefit from this fast-growing market in the long