China’s Hydrogen Industry Continues to Grow on Ambitious Programs – Takeaways from FCVC 2025

It is clear China stands strong when it comes to hydrogen. The country is the global leader in deploying fuel cell electric vehicles (FCEVs), and most likely already in the deployment of renewable hydrogen production projects. Established companies in the supply chain continue to grow, powered by ambitious government programs.

In 2023-2024 China accounted for about 50% of global sales FCEVs, which annual sales reaching about 6000 units, primarily heavy-duty commercial vehicles like trucks and buses. There was an estimated 25,000 FCEVs deployed totally in the country at the beginning of 2025.

In order to accelerate the roll-out aiming at government targets for FCEVs, the Ministry of Finance in April 2025 announced the allocation of 2.34 billion yuan ($321.5 million) for the third year of the ‘FCEV demonstration initiative’ that includes 28 urban districts within 10 provincial regions, including Beijing, Shanghai, Tangshan, Zhengzhou and Tianjin. This is an increase of 44.2% over the second year’s funding.

According to presenters at FCVC 2025 the program has served its purpose well when it comes to demonstrating the technology and reliability of FCEVs, while infrastructure, hydrogen supply and cost of hydrogen need further focus to support the ambitious targets. A sign addressing the full supply chain, the National Energy Administration (NAE) in June announced an extensive pilot initiative to scale up hydrogen technology, infrastructure and applications. Significant focus is made on hydrogen production, storage and transportation, large parts being on green hydrogen production and infrastructure.

Further proof of China’s commitment to hydrogen, earlier this year, hydrogen energy was officially included in the ‘Energy Law of the People’s Republic of China’, clearly defining its legal status as ‘actively promoting the development and utilization of hydrogen energy.’ The central government has listed it as a key development direction for cutting-edge emerging industries, with increasing policy support.

The ‘China Hydrogen Development Report (2025)’, compiled and released by NAE, shows that by the end of 2024, the cumulative installed capacity of global renewable hydrogen projects exceeded 2.5 million tons per year, with China accounting for over 50%, gradually becoming a leading country in the global development of renewable hydrogen and related industries.

In this environment I am very pleased with Impact Coatings’ strong regional presence, where we can support both the fuel cell and electrolyzer ecosystems. Our Coating Service Center in Shanghai is a volume production facility with automated equipment, end-to-end production processes, dedicated personnel, and premier expertise and focus on supporting the hydrogen industry.

Impact Coatings in China also provides support to a growing number of customers that use the company’s INLINECOATER™ PVD systems in their inhouse coating operations, currently for PEM fuel cell bipolar plates, but with a coating platform well suited also for electrolyzer components.

During my presentation at FCVC 2025 I talked about the solutions that Impact Coatings provides to hydrogen industry customers and partners in China. It includes the Premium FC coating for PEM fuel cells for heavy-duty applications, a coating that fulfils the tough performance and 30,000-hour durability requirements set by the industry.

I also talked about new technologies, such as iridium oxide coatings that can drastically reduce iridium loading, with the potential to reduce the cost of PEM electrolyzers, and as a result, the cost of producing green hydrogen.

Overall, an insightful and successful FCVC 2025.  Now, back to the hard work supporting and supplying current and future customers and partners in a forward-looking Chinese hydrogen community.

Yaowen Wang
Regional President, China