Ceres Power Holdings PLC (LSE:CWR, OTC:CPWHF) shares surged 11% to 347p after the clean energy technology firm signed a new manufacturing licence agreement with Chinese engine giant Weichai Power, expanding their long-standing partnership into large-scale production.
Under the deal, Weichai will produce Ceres’ proprietary solid oxide fuel cell (SOFC) technology at a new facility in China, focusing on power systems for data centres, industrial operations and commercial buildings.
The agreement replaces previous arrangements and brings Ceres’ total number of global manufacturing partners to four.
Financial terms were not disclosed, but Ceres said the licence fees, milestones and royalties are in line with its existing manufacturing deals, providing significant future revenue and cash generation.
Because of timing, the licence income will mainly be recognised in the 2026 financial year, leaving current-year revenue guidance unchanged.
Chief executive Phil Caldwell said the partnership “represents both an endorsement of Ceres technology and a significant business opportunity for both companies,” noting the growing demand for efficient power systems to support AI data centres and grid resilience.
Weichai, headquartered in Shandong, is one of China’s leading engine and powertrain manufacturers.
Its decision to integrate Ceres’ high-efficiency SOFC systems marks another step in the wider commercial rollout of the UK company’s fuel cell technology, which aims to deliver cleaner, decentralised power generation.