Forvia Partners with Sinopec to Accelerate Hydrogen Development in China
The automotive supplier announces Sinopec's entry into the capital of its Chinese subsidiary dedicated to hydrogen through a capital increase of 300 million yuan, approximately 40 million euros. This move aims to strengthen the group's position in the rapidly expanding Chinese hydrogen market.
Strategic Partnership
According to the press release, Sinopec will join the project through its subsidiary, Chaoyang Hydrogen New Energy Venture Capital Fund. The operation confirms Forvia's intention to optimize its presence in the Chinese hydrogen market, supported by ambitious government policies, the company states. The entry of this major player in China's hydrogen value chain is expected to solidify the position of Forvia Hydrogen Solutions China and facilitate access to public contracts and industrial synergies, the group specifies. The partnership will also optimize the supply chain, particularly in carbon fiber and resins.
National Priority
Hydrogen has become a national priority in China, incorporated into the national energy management system alongside gasoline and natural gas, according to the company. In 2024, the country produced 36.5 million tonnes of hydrogen, a 3.5% increase from 2023, primarily for the chemical industry, with growing use in transportation and steelmaking. China is the world's leading market for fuel cell vehicles, with over 30,000 units sold, and has 559 refueling stations, the press release notes. The 2025 roadmap aims for 500,000 hydrogen vehicles by 2030 and over a million by 2035, supported by subsidies, toll exemptions, and reduced hydrogen prices.
Long-standing Presence
Forvia has been present in China for over 30 years. As of December 2024, this market accounted for 21% of the group's global sales, approximately 5.9 billion euros, making it one of the most strategic markets, the company indicates. The group operates 67 factories and 27 research and development centers in over 30 cities, employing more than 30,700 people, including 3,000 in research and development. Forvia collaborates with over 40 international and Chinese manufacturers and ranks as the fifth largest automotive supplier in China, according to the press release. Chinese manufacturers account for 70% of the domestic market, and the penetration of electric vehicles stands at 35%, with a target of 45% by 2030.
