VW Buys Ballard’s Fuel-Cell Patents

Volkswagen AG has agreed to buy some $50 million worth of automotive fuel-cell patents from Vancouver-based Ballard Power Systems Inc.

The Canadian developer also will provide as much as $62 million in engineering services to VW through March 2019.

Ballard has been providing such services to VW under a four-year contract signed in 2013. That program is developing a next-generation fuel-cell system for VW's HyMotion concept vehicles.

Ballard has pioneered in proton-exchange-membrane automotive fuel cells for more than 30 years. It formed research alliances with Daimler and Ford but struggled to commercialize the technology. In 2009 the company shifted its focus primarily to stationary fuel-cell systems.

Ballard says it has improved the durability of its fuel cells and cut their production cost 60% in the past several years.