Ballard Power Systems Inc., already partnered with DaimlerChrysler AG and Ford Motor Co., is looking for further investment funds from the Chinese. Ballard, unprofitable since 1998, is the largest supplier of fuel cells for vehicles.
Han Tjan, a U.S. spokesman for Stuttgart, Germany-based DaimlerChrysler, which owns 17.3 percent of Ballard, declined to comment on the fuel-cell company's discussions with Chinese officials. Ford, which owns a 10.4 percent stake in Ballard, also had no comment, said Nick Twork, a spokesman for the Dearborn, Michigan-based automaker.
It doesn't take much to do the math and see if you're burning $60 million to $80 million a year, and if the consumer market for fuel cells is optimistically not going to arrive until say 2015, you may need additional sources of capital,'' said Jonathan Hykawy, a Toronto-based analyst with Fraser Mackenzie Ltd. who rates Ballard's shares ``underperform.''
This is the perennial problem facing companies in the hydrogen fuel cell business. If the companies can stay in business long enough for fuel cells to become profitable, they have the potential to reap huge rewards by being first to market. However, many large players may wait until the profitability is proven before stepping in and bring a stronger balance sheet with them. Early innovators may have their hands full when that happens. If their lead is substantial at that time, it may protect their business. Time will tell.
