Hyzon Motors to halt operations in the Netherlands, Australia

Hyzon announced that after considering its options as well as completing its assessment of the challenging market conditions across Europe and Australia, the company will halt its operations in the Netherlands and Australia. Hyzon said the government support for fuel cell-powered transportation in Europe and Australia has waned, including the disbandment in many European countries of hydrogen subsidies. Hyzon currently intends to maintain the potential to return to the European and Australian markets as a fuel cell system supplier to Original Equipment Manufacturers. In connection with the planned exit activities, the company expects to incur charges of approximately $17M, of which approximately $7M is expected to be in cash. Components of the charges include non-cash inventory write-downs of approximately $7M, employee-related costs of approximately $3M, other exit related costs of approximately $4M and non-cash impairment charges of approximately $3M. The company expects to incur these costs in the second and third quarters of 2024 and make the related cash payments in the third and fourth quarters of 2024. Further, the company anticipates derecognition of certain liabilities, which may result in non-cash gains in the third and fourth quarters of 2024. The company is presently unable to estimate these non-cash gains.