Bosch, a leading engineering and technology company, has announced its takeover of the production of the S3 fuel cell stack for PowerCell, a Swedish fuel cell technology provider

In this recent agreement, Bosch will integrate the S3 fuel cell stack into its production facilities in Germany and deliver fully assembled 100 kW stacks to PowerCell's plant in Gothenburg. The collaboration between Bosch and PowerCell, which began in April 2019, is focused on industrializing, producing, and distributing the PowerCell S3 specifically for automotive applications. Under this exclusive agreement, Bosch has been granted the rights to manufacture and sell the PowerCell S3 specifically for the automotive market, while PowerCell retains full rights for other applications and segments.

By outsourcing the production of the S3 fuel cell stack to Bosch, PowerCell aims to concentrate on expanding the assembly and delivery of complete fuel cell systems and developing the next generation of fuel cell stacks. While the financial details of the agreement have not been disclosed, PowerCell expects to gain financial freedom through this arrangement.

It's worth noting that PowerCell's partnership with Bosch extends beyond the automotive industry. In a separate agreement signed in 2022, PowerCell will supply 5,000 fuel cell stacks to ZeroAvia for use in the aviation sector, starting from 2024. These stacks will now be assembled in Germany by Bosch. This expansion into aviation aligns with PowerCell's broader strategy of providing segment-specific fuel cell systems to various industries.

The specific Bosch facility where production will take place has not been mentioned in the announcement. However, Bosch already manufactures fuel cell stacks at its Bamberg site as part of the earlier collaboration with PowerCell. Bosch has previously expressed its goal of producing fuel cell stacks with a gigawatt capacity by the mid-2020s. Whether the existing capacity in Bamberg is sufficient to meet the increased demand from PowerCell remains undisclosed.

Richard Berkling, CEO of PowerCell, highlights that the agreement with Bosch significantly enhances their production capacity and enables them to meet the growing demand for their hydrogen electric solutions. Berkling emphasizes their commitment to delivering value to customers through innovative products and the development of the next generation of fuel cell stacks.

Thomas Wintrich, Senior Vice President of the Business Unit Fuel Cell Mobility Solutions at Bosch, considers the supply agreement as a testament to the successful collaboration between Bosch and PowerCell. Wintrich emphasizes the agreement's contribution to the advancement of Bosch fuel cell technology in Europe and the shared goal of achieving emission-free mobility. Bosch is pleased to support PowerCell through their scaled-up manufacturing capabilities.