Ceres Power has signed a manufacturing licence agreement with Weichai Power for the production of its proprietary solid oxide fuel cell (SOFC) technology in China. The agreement builds on a long-standing collaboration between the two companies and allows Weichai to manufacture SOFC cells and stacks for stationary power systems. It supersedes previous commercial arrangements between the partners.
Weichai, headquartered in Shandong, plans to set up a facility to produce SOFC components for applications including power supply to AI data centres, commercial buildings, and industrial operations. The company will integrate SOFC systems alongside its existing gas engines and powertrains to expand its power generation portfolio.
The agreement brings Ceres’ network of global manufacturing partners to four. Revenue from licence fees, milestones, and royalties is expected to follow a structure consistent with the company’s earlier licensing agreements. Due to the timing of the deal, Ceres anticipates recognising licence fee revenue in the 2026 financial year, while its 2025 revenue guidance remains unchanged.
Phil Caldwell, CEO of Ceres, said: “We are excited to extend our relationship with Weichai with a manufacturing licence to produce Ceres-based products in China, further expanding the ecosystem for our technology. Our relationship with Weichai, a leading supplier of conventional gas engines in China and internationally, represents both an endorsement of Ceres technology and a significant business opportunity for both companies.”
Caldwell added that demand for distributed, high-efficiency power systems is rising rapidly due to the growth of AI data centres, industrial power needs, and grid reinforcement. He said Ceres’ SOFC systems, which can be deployed rapidly where power is needed, represent “a multi-billion market opportunity” for the company.
