The fuel cell technology firm said on Monday that it noted recent media reports that state-backed Weichai was looking to increase its stake in the business by a further 10% and to agree on a manufacturing joint venture.
“Ceres confirms discussions with Weichai are ongoing and a further statement will be made in due course,” the company said in a statement.
In May, Weichai took a 10% stake in Ceres for £17mln as part of a strategic partnership. The partnership includes an agreement to jointly develop and launch an SOFC fuel cell range extender system for China's electric-powered bus market.
READ: Ceres Power announces partnership with China’s Weichai Power and £17mln potential equity investment
For Ceres, the deal was expected to provide “significant staged revenues” through engineering services, a technology transfer as well as licence and royalty payments. At the time, Ceres said the two were also considering a manufacturing joint venture, from which it would receive a share of the profits.
“This is a key milestone for Ceres Power as we continue to deliver on our strategic plan of licensing our technology to a leading original equipment manufacturer, which if successful could lead to a high volume manufacturing joint venture for the Chinese market with a very strong partner,” chief executive Phil Caldwell said in the May announcement of partnership.