Hyzon’s Bolingbrook Hydrogen Fuel Cell Plant May Face Layoffs

Hyzon Motors, the company known for its hydrogen-powered electric trucks and a fuel cell factory in Bolingbrook, is facing financial difficulties. The publicly traded startup has announced plans to liquidate its assets and may have to let go of most of its employees due to a lack of funds and a challenging political climate for electric vehicles.

According to a recent filing with the Securities and Exchange Commission, Hyzon is seeking shareholder approval for an assignment for the benefit of creditors, a bankruptcy alternative that allows insolvent companies to transfer assets free of unsecured debt. The company has warned its employees in Bolingbrook and Michigan about a potential reduction in force in February if funds are not raised or a buyer is not found.

Hyzon originally made headlines in March 2021 when it announced plans to build the largest hydrogen fuel cell factory for electric trucks in Bolingbrook, aiming for commercial production by the end of the year. However, since then, the company has faced challenges, including financial scrutiny after going public in July 2021 and subsequent issues with activist investors.

Despite orders to build hydrogen-powered garbage trucks, Hyzon has struggled to gain significant commercial traction and has been operating at a loss. The company reported a net loss of $184 million last year, with further losses this year. The uncertainty surrounding government subsidies for electric vehicles has added to the company’s challenges, with concerns about the impact of policy changes under new administrations.

Hyzon’s stock value has also taken a hit, with a 33% drop on Friday to close at $1.12 per share. The company’s market cap has fallen below $10 million, showing the extent of its financial struggles. While Hyzon has not provided further comments on the situation, the future of the company and its employees remains uncertain.