Part II: HYZON Motors Friend or Foe
Disclaimer: If you are new to Ideanomics do not invest based on just this report as this will be the most speculated piece I’ve written to date. Please read my prior reports and do your own DD.
Welcome back 2/2 let’s get it! In this Deep Dive, I will be presenting all the information that I have found on Hyzon Motors and Ideanomics connections.
Recap from prior DD on HYZON Motors (link)
HYZON Motors
HYZON Motors was established in the US in January 2020 as a spin-off from Singapore based Horizon Fuel Cell Technologies Pte Ltd. HYZON is a global supplier of zero-emissions hydrogen fuel cell-powered commercial vehicles, including heavy-duty trucks, buses, and coaches.
Headquartered in Honeoye Falls, NY and with operations in Europe, Singapore, Australia, and China, the company is led by Chief Executive Officer Craig Knight and Executive Chairman George Gu, who were part of the international team that built Horizon from 2003 to become a leading global technology provider in PEM fuel cells.
HYZON’s newly purchased US locations are a former Toyota plant in California and a former GM plant in New York. Since the acquisitions of these properties, no updates of NA operations have been published. The company has only talked about its operations in Australia and is expected to start producing vehicles by 2021.
Smartrick Claim:
Ideanomics and HYZON are involved with each other, I’m not sure if it will be a partnership, a joint venture, or an acquisition but there is too much to ignore proving this is more than just some happy accident. let’s go!
Exhibit A: HYZON needs IDEX SIC code
HYZON Motors has announced that they would be rebadging trucks and bringing them into the US. According to the US patents office, HYZON is just registered as a fuel cell company, not a manufacturer. Which they would need a manufacture’s SIC code in order to assemble these vehicles here in the US.
Also, note HYZON is not HYZON in the US as they filed for a trademark under the name Titan Fuel Cells with the US patent’s office.
Exhibit B: Rebadging
Let’s get something perfectly clear about rebadging, A LOT of companies rely on this method to include HYZON and Ideanomics (particularly with Treeletrik and I will assume Medici’s future vehicles to a degree as well.)
Back in August HYZON and partner Fortescue Metal Group an Australian mining company (FMG) together delivered 10 “custom” hydrogen buses to Australia. To me, those buses resemble buses built by Ankai, a subsidiary of JAC Motors (Volkswagen 75% ownership)
Ideanomics connection:
Back in 2019 Ideanomics and Ankai signed an agreement to develop hydrogen and electric buses with Ankai. Link
Under the terms of the deal Ideanomics is entitled to up to 10% commission on bus orders it introduces, the exact commission will be dependent on the make, model, and specification of the buses ordered, as well as any discounted pricing negotiated as part of the sales order. In return for the commissions, Ideanomics will seek to place a minimum of 10,000 orders with Ankai from its previously announced deals. The parties have agreed to cooperate on sales and marketing activities in Malaysia and the broader ASEAN region, as well as Europe and the United States. Ideanomics also earns fees from asset-backed financing (ABS) services it arranges through its banking and financial services relationships.
Furthermore, both parties have agreed to cooperate on new energy initiatives, including electric battery, hydrogen, and charging station networks, with Ideanomics contributing its relationships with leading partners in this field. Ideanomics is currently working with a number of partners in this area and plans to also derive a share of the recurring revenues from the charging networks it is partnering to facilitate.
Takeaway
HYZON rebadged an Ankai bus who holds an active partnership in developing electric and hydrogen buses with Ideanomics
Inner Mongolia IDEX Connection #1
In Alf Poor’s interview on Clean Tech Talk, he spoke about the current operations they had in the battery field of Inner Mongolia and how Ideanomics was seeking to secure all of the major Chinese mining providences.
The deal will see MEG work directly with the Province of the Inner Mongolia autonomous region, as well as working with the City of Erdos (or Ordos) and the provincial capital Hohhot. The partners are committed to cut pollution and carbon emissions to zero, as well as to promote the "Blue Sky" initiatives, which are important for the planet and at the same time provide massive cost savings to regions and corporations, similar to the projected Erdos mine that will save more than just fuel cost of over 110 Billion RMB ($15 Billion) in the next 5 years
Inner Mongolia IDEX Connection #2
GCL Group which owns 49.9% of MEG in 2018 signed an agreement with Japanese Mining Commglomerate Mitsui to partner in developing electric vehicles and liquified natural gas. (link)
Under the agreement, Mitsui and GCL Group will consider the utilization of AI in the energy conservation field, collaboration on LNG initiatives centering on import terminals on China’s coastal regions, and EV related projects in Ordos City, a subdivision of Inner Mongolia, China.
Note: LNG has evolved into hydrogen fuel cells
HYZON connection to Inner Mongolia #1
Jiangsu Qingneng New Energy Technology Co. LTD. (aka Horizon aka HYZON) in November 2020 signed an M of U with the city of Ordos specifically Ordos Airport Logistics Park.
Under the leadership of Guo Shidong, deputy director of the Airport Logistics Park Management Committee, a group of people visited Qingneng shares on the afternoon of November 26. The two parties conducted in-depth exchanges and discussions on the R&D and production of hydrogen fuel cell core components in Ordos. And signed a strategic cooperation agreement. Afterwards, accompanied by Zhang Chi, general manager of Qingneng shares, visited the company's R&D and production bases.
During the meeting, Guo Shidong, deputy director of the Airport Logistics Park, said: Ordos City regards the hydrogen energy and fuel cell industry as an important breakthrough in the energy transition. The park welcomes the participation of outstanding industrial chain enterprises and will focus on policies, industrial support and terminal applications. Provide strong support. " (link)
HYZON Inner Mongolia connection #2
HYZON’s Partner FMG signed this agreement
“The MoUs are valued cumulatively in the range of US$3 to $4 billion.
FMG signed MoUs with long-term partner and major shareholder Hunan Valin Iron & Steel Group Co for the supply of iron ore and procurement opportunities, as well as the Bank of China.
The company signed another nine agreements with Baotou Iron & Steel (Group) Co, Benxi I&S Group International Economic & Trading Co, Dalian Huarui Heavy Industry Group Co, Guangxi Shenglong Metallurgical Co, Lingyuan Iron and Steel Co, Rizhao Steel Holding Group Co, RGL Group Co, Shaanxi Iron and Steel Group Import & Export Co, and Tianjin Jianlong I&S Industrial Co.”
Baotou is a city in Inner Mongolia so FMG would be directly involved in this Inner Mongolia umbrella deal signed by Ideanomics which included a deal to establish an innovative New Energy Metals Trading Platform and Exchange.
Fortescue Metal Group - IDEX
On November 22 2018 FMG signed a partnership with the CSIRO* (link)
*The Commonwealth Scientific and Industrial Research Organisation is an Australian Government agency responsible for scientific research.
The centrepiece of the $20m partnership, announced today at CSIRO's Brisbane laboratories, is an investment in CSIRO's metal membrane technology, which enables ammonia to be used as a carrier material for hydrogen storage and transport.
CSIRO Chief Executive Dr Larry Marshall said: "CSIRO has a strong history of collaboration with industry, not just helping existing industries reinvent themselves through global disruption, but actually inventing entirely new industries like hydrogen where Australia can take the lead."
I highlight that these operations are centered around CSIRO’s Brisbane Laboratories because of this.
IDEX in Australia
On September 24th, 2020 Ideanomics signed a JV with the Asia-Pacific Economic Cooperation (APEC) an inter-governmental forum for 21 member economies in the Pacific Rim that promotes free trade throughout the Asia-Pacific region
Ideanomics will deliver blockchain technology and artificial intelligence (AI) to supply chain services in APMEN’s online port clearance system – the Asia-Pacific Economic Cooperation (APEC) Model E Port Network.
Takeaway: This JV signed by Ideanomics includes the port of Brisbane which is importing the metals needed in the development of hydrogen fuel cells with FMG. A portion could be coming from Inner Mongolia.
Harvest Global Investments IDEX Connection
Harvest Global Investments (HGI) is one of the largest investment firms in China. HGI happens to have a seat on Medici’s Board of Directors and is an active investor in both Ideanomics and Medici Motor Works.
Harvest Global Investments HYZON Connection
In a recent interview HYZON CEO Craig Knight was quoted saying this:
Thus far, Hyzon is creating fuel cell trucks from glider kits — truck bodies with the engine and transmission removed. The first examples in the U.S. will be midsize Ford trucks followed by a Class 8 platform Knight declined to identify. Both will be gliders rebranded as Hyzon.
“We see a lot of value in doing some of these early demonstrations even though the vehicles are not perfect,” he said. “They are not fully optimized to be electric vehicles because they were originally designed as diesel vehicles. The second half of the journey is systems that are designed from the ground up for electric drive.” (important for later in the report) (link)
Mutual Partners IDEX-HYZON
This one is a tricky one as you have to dig a little deeper let’s start with HYZON and backtrack to how IDEX could be involved or partnered.
On Nov 25, 2020, Hyzon announced it will have 100,000 hydrogen trucks on the road by 2030, also detailed a coalition with many prominent OEM manufactures.
The Coalition includes the likes of Toyota, Hyundai, Honda, HYZON Motors, Ballard, Michelin, Total, Engie, Shell and BMW Group to name a few, and covers original equipment manufacturers (OEMs), fuel cell and hydrogen technology providers, refuelling infrastructure and hydrogen providers, truck operators, road freight services users and related industry associations.
Toyota
The Japanese automaker has talked about a hydrogen fuel cell semi-truck since 2017, and in October of 2020 announced they will be releasing two trucks with partner Hino. However, Toyota nor Hino have said they were bringing their trucks to the US.
After all these years of flirting with the possibility of a Class 8 truck, by golly Toyota's going to do it. But it won't do it alone. The automaker said it will work with Hino, a Japanese commercial vehicle manufacturer. Hino will provide the semi chassis, and Toyota will bring its fuel cell powertrain to the party. The final result will be a zero-emissions semi truck with specs to make the vehicle competitive for the North American region. Toyota and Hino already said they'd partner on a truck for Japan, but the two won't be identical. (link)
Toyota IDEX connection
Contemporary Amperex Technology Co (CATL) and Toyota signed a joint agreement to work on new energy vehicle (NEV) batteries back in 2019 (link) Recently Toyota has said that the project between the two companies is set to release its solid-state battery in 2021. (link)
But that’s not where the connection ends as GCL, co-owner of MEG and strategic partner to Mitsui is the one building the facility to produce these batteries. This then leads me to back to Smartrick Special Report: I found the truck!! (Ideanomics) report where we see the Chairman of Yunhong Holdings has a screenshot of the first Medici Motor Works truck. (link to the screenshots and Li Yubao’s commentary on the truck)
I sent the post to a friend who speaks Chinese (lives in Singapore) to help me translate the post, with the direct translation being nuclear electric I wanted to get to the bottom of it.
So potentially the reporting of the truck in reference to being the first solid-state battery truck lines up.
IDEX December Newsletter
Hyundai
This is an easy one Hyundai’s Xicent was the first hydrogen semi-truck on the market, it is produced by Hyundai’s Chinese subsidiary Hyundai Truck & Bus.
Ideanonimc’s Treeletrik brand also has MoU with subsidiary Hyundai KEIFCO also a Chinese subsidiary of Hyundai. Hyundai KEIFCO is the largest EV and hydrogen parts distribution company in the world.
Honda
Hyzon’s NY factory is the former home to GM who in June signed an agreement on Hydrogen fuel technology with Honda
Ballard
Vice President-MEA Technology & Advanced Materials Manufacturing at Hyzon Motors Rajesh Bashyam spent 11+ years working for Ballard before he left to join Horizon/HYZON
Dr. Liqing Hu as Chief Scientist and the Launch of the Medici Research Institute is a former Ballard System employee who left the company to advance hydrogen research in China.
HYZON - Volkswagen - DAF
In the Netherlands, the production of the vehicles will also be carried out by a partner. Still, with a slightly different working method: Holthausen Clean Technology will build the Hyzon trucks based on DAF’s XF Space Cab semitrailer tractor. However, technical specifications are not yet known. Previously published pictures of the Hyzon truck for Europe show the DAF model with a slightly modified front and large Hyzon lettering. The Hyzon truck is expected to be on the market in six to eight months. Hyzon Motors Europe plans to deliver “hundreds of heavy fuel cell vehicles” by the end of 2021.
Hyzon rebadged Ankai Bus in Australia
IDEX - Volkswagen - JAC/Ankai
Ideanomics hires Former Director of Group Finance Controlling at Volkswagen Group Malaysia as new CFO of Treeletrik
At IDEX 2020 AGM Alf Poor stated they were offered to take over NIO’s battery as a service program but turned it down (NIO is manufactured by JAC 75% by owned VW)
Ankai partnership on hydrogen and EV buses
Markets and Timelines
HYZON Market
IDEX Market + Treeletrik in Malaysia
HYZON Timeline
IDEX Timeline
Alf Poor stated that they were planning on shipping vehicles over to the US by end of the year but have been delayed due to COVID. It seems like HYZON is dealing with the same thing as they haven’t debuted what their vehicles look like either just similar looking concepts.
Final Wrap up
Why HYZON needs IDEX
They need our SIC code in order to deliver vehicles to customers in the US
How is HYZON planning on getting financing done on fleet sales of their products?
Why IDEX needs HYZON
If IDEX via Medici is going to start delivering vehicles in the US in 2021 they’re gonna need HYZON’s infrastructure to assemble these vehicles i.e the two factories in the US.
HYZON would provide a steady stream of fuel cells for our trucks which would complement our already established partnership with CATL
Hyzon’s partners (coalition mentioned prior) get IDEX/Medici distanced from being a “Chinese” company which Bruno Wu stepping down supports this narrative.
So I ask you this question: is this the World’s biggest coincidence or am I onto something?
Bonus Info!
This is my opinion but this is how it all could potentially unfold. In Part 1: Wu's Departure and What Does It Mean? I assessed that the current cash on hand that Ideanomics has is meant for these large financial pools to be opened.
Proterra has a $1-2 billion evaluation and how does MMW get that?
If I speculated correctly and these pools are opening and IDEX-HYZON work together it seems that Medici Motor Works will have a large order book to draw from resulting in a multi-billion-dollar evaluation.
