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Fuel Cell Manufacturing Business Guide

3Documented Cases
Evidence-Backed

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All 3 Documented Cases

Excessive Costs from Platinum Catalysts and Specialized Materials

$45% cost reduction needed at scale (current volumes exceed this baseline)

Procurement of catalysts like platinum-group metals (PGMs) for PEM fuel cells drives high costs due to material expense and price volatility. Membranes and related materials add to the burden with complex manufacturing needs and low-volume production. Scaling up fails to reduce costs without hitting 200,000-unit thresholds, leading to ongoing overruns in specialized procurement.

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Membrane and Catalyst Degradation Causing Rework and Warranty Risks

Elevated ownership costs from degradation (quantified by DOE targets unmet)

Catalysts poison and membranes weaken over time, leading to performance decline and failure to meet durability targets like 25,000 hours for trucks. This results in rework during manufacturing and higher lifetime costs from replacements or compensations. Procurement of sub-optimal materials exacerbates degradation from hydrogen exposure and overheating.

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Supply Chain Unreliability Delaying Materials Procurement

Higher production costs from delays (tied to green H2 expense and scaling)

Scaling production faces supply chain bottlenecks for catalysts and membranes, with multiple suppliers causing delays and idle equipment. Low standardization from prototype vendors hinders reliable procurement, leading to lost capacity during demand surges. Reducing supplier numbers is critical but challenging in this niche market.

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