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Ballard and Audi Sign 3.5-Year Extension to Long-Term Program for Fuel Cell Passenger Cars

 

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Ballard Power Systems (NASDAQ: BLDP; TSX:BLDP) announced that the Company has signed a 3.5-year extension to its current Technology Solutions contract with AUDI AG, part of the Volkswagen Group (Volkswagen AG, www.volkswagenag.com and AUDI AG, www.audi.com), extending the HyMotion program to August 2022. The aggregate value of the contract extension is expected to be C$80-to-130 million (US$62-100 million). The program will support Audi through its small series production launch.

 

The HyMotion program encompasses automotive fuel cell stack development as well as system design support activities. Ballard is focused on the design and manufacture of world-leading, next-generation fuel cell stacks for use in Audi's 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.

Dr. Peter Mertens, Board Member for Technical Development at AUDI AG said, "Our collaboration with Ballard has enabled the acceleration of our automotive fuel cell program, by bringing together fuel cell skills and expertise in both organizations. We have developed demonstration cars using fuel cell technology and design from the HyMotion program, and are working toward a small series production launch."  

Randy MacEwenBallard President and CEO stated, "The long-term HyMotion program is a testament to the commitment that Volkswagen Group and Audi have shown toward fuel cell electrification and their partnership with Ballard. Ballard is committed to supporting Volkswagen and Audi's corporate fuel cell automotive goals and objectives. We believe the Ballard-designed fuel cell stacks integrated into Audi's propulsion systems and vehicles will deliver outstanding automotive fuel cell performance, including highest power density, lightest weight, highest durability and robust freeze start capabilities."

Mr. MacEwen added, "The automotive industry is undergoing extraordinary transformation, driven by electrification, shared mobility and autonomy. We believe shared mobility and autonomy will fundamentally change passenger car utilization rates, with much longer daily range requirements and longer hours of operation. We expect fuel cell electrification to uniquely provide the passenger vehicle market with zero-emissions, low noise and smooth acceleration while also meeting long daily range and rapid refueling requirements."

Dr. Kevin Colbow, Ballard's Vice President – Technology and Product Development commented, "Our highly experienced team of HyMotion engineers and scientists are collaborating closely with Audi's fuel cell competence center. We recently completed a series of regularly scheduled program update meetings with Audi in Germany and can confirm that we remain on-track with respect to our program goals."

Ballard signed an initial 4-year contract with Volkswagen AG in March 2013, followed by a 2-year extension in February 2015, with the full 6-year contract term running to March 2019. AUDI AG assumed leadership of the program in 2016.

Concept cars representing multiple Volkswagen and Audi brand models, and utilizing technology and components developed through the HyMotion program with Ballard, have been unveiled at Detroit and LA Auto Shows over the past several years. This has included the Golf SportWagen HyMotion, Passat HyMotion and Audi A7 Sportback h-tron quattro. 

About Audi
The Audi Group, with its brands Audi, Ducati and Lamborghini, is one of the most successful manufacturers of automobiles and motorcycles in the premium segment. It is present in more than 100 markets worldwide and produces at 16 locations in twelve countries. 100 percent subsidiaries of AUDI AG include Audi Sport GmbH (Neckarsulm), Automobili Lamborghini S.p.A. (Sant'Agata Bolognese, Italy) and Ducati Motor Holding S.p.A. (Bologna, Italy).

In 2017, the Audi Group delivered to customers about 1.878 million automobiles of the Audi brand, 3,815 sports cars of the Lamborghini brand and 55,900 motorcycles of the Ducati brand. In the 2017 fiscal year, AUDI AG achieved total revenue of €60.1 billion and an operating profit of €5.1 billion. At present, approximately 90,000 people work for the company all over the world, more than 60,000 of them in Germany. Audi focuses on sustainable products and technologies for the future of mobility.

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