LONGi Hydrogen Signals Global Expansion Despite Market Cooling, CEO Charts Strategic Path Forward

According to OFweek Energy reports, Wuxi LONGi Hydrogen Technology Co., Ltd. （隆基氢能）has undergone a business registration change, with its registered capital increasing from 200 million yuan to 450 million yuan. 

Corporate records indicate that Wuxi LONGi Hydrogen Technology Co., Ltd. operates as a wholly-owned subsidiary of LONGi Hydrogen, which was established on March 31, 2021. LONGi Hydrogen's shareholders include Xi'an LONGi Venture Management Co., Ltd. and Shanghai Zhuque Ying Private Investment Fund Partnership (Limited Partnership). Li Zhenguo, founder of the photovoltaic industry leader LONGi—a company with a market capitalization exceeding 100 billion yuan—serves as both Chairman and CEO. 

LONGi Hydrogen has demonstrated rapid growth since its inception. In April 2021, the company established its manufacturing facility in Wuxi, achieving its first product rollout by October of the same year and reaching a production capacity of 500MW within its first year of operations. 

According to the "China Hydrogen and Fuel Cell Industry Annual Blue Book (2022)," LONGi Hydrogen ranked among the top three national suppliers by shipment volume in 2022. By the end of February 2023, the company had accumulated orders exceeding 240 million yuan (excluding tax), with approximately 220 million yuan expected to be recognized as revenue in 2023.

source: LONGI

In April 2023, LONGi announced that through its wholly-owned subsidiary LONGi Investment, it would inject 460 million yuan into its controlled subsidiary LONGi Hydrogen. Additionally, company directors, senior executives, and core management personnel contributed 40 million yuan, bringing the total capital injection to 500 million yuan. 

 LONGi Hydrogen achieved a significant milestone in 2023, with revenue surpassing 100 million yuan. The company emerged as China's largest supplier of alkaline electrolyzers by contract value. By the end of the reporting period, it had established an industry-leading production capacity of 2.5GW. 

 In a 2024 interview with Xinhua Finance, Li Zhenguo, Chairman and CEO of LONGi Hydrogen, stated: 

"If the industry had continued to develop according to the logic from three years ago, LONGi's aggressive positioning and rapid establishment of R&D, production capabilities, and supply chain capacity would have been beneficial. However, given the current industry cooldown and the premature hypercompetition in China's hydrogen market before it has fully matured, LONGi needs to make some adjustments. This means our team needs to take a step back, implement some strategic optimization and consolidation, conduct more thorough R&D, refine our products to a higher standard, and continue expanding in overseas markets. We'll gradually develop high-quality international projects and build customer acceptance of LONGi." 

The term "strategic optimization and consolidation" led many industry observers to believe that LONGi would scale back its hydrogen operations. However, examining specific actions reveals that LONGi has undertaken more optimization initiatives than actual scaling back of its hydrogen business. 

On December 23, 2024, LONGi Hydrogen signed an investment agreement with Norwegian hydrogen company HydrogenPro. Under this agreement, LONGi Hydrogen will join existing shareholders Andritz Group and Mitsubishi Heavy Industries in investing approximately 140 million Norwegian Kroner in HydrogenPro.

source: HydrogenPro

Simultaneously, the parties signed a cooperation agreement establishing a partnership between LONGi Hydrogen and HydrogenPro. Moving forward, both companies will leverage their respective strengths to jointly drive the scale-up of electrolyzer manufacturing, engineering design, and after-sales services in the European green hydrogen market. 

Most recently, LONGi Hydrogen has increased its capital investment in Wuxi LONGi Hydrogen Technology Co., Ltd. by 250 million yuan. While the absolute amount isn't substantial, it represents a 125% increase, and given that LONGi Hydrogen's factory is located in Wuxi, this move likely signals continued production expansion plans.