Canada's Next Hydrogen has partnered with China's Sungrow Hydrogen to outsource the manufacturing of its electrolysers from 2026 onwards. While Next Hydrogen will maintain control of its intellectual property and system design, Sungrow will handle large-scale production, including components like pumps and piping. This collaboration is aimed at enhancing production scalability and cost-efficiency, with Sungrow set to manufacture Next Hydrogen electrolysers and balance of plant systems for large-scale orders. The partnership also explores the possibility of North American manufacturing to comply with 'locally made' rules for tax incentives under the Inflation Reduction Act. The move to engage Sungrow as an OEM partner is intended to accelerate the market entry and production scaling for large-scale green hydrogen projects. Both companies are looking to co-develop and market a wider range of hydrogen solutions for various sectors such as transport, refining, steel, and ammonia. This strategic partnership reflects a broader trend of Western clean tech companies turning to China for manufacturing due to scalability and cost-effectiveness. Wood Mackenzie's report predicts that Chinese electrolyser manufacturers will secure around one-third of global orders in 2025, particularly in regions outside Europe and North America. The appeal of Chinese electrolysers lies in their cost advantage, manufacturing capacity, and shorter delivery times, making them attractive options for projects in regions like the Middle East, Southeast Asia, North Africa, and Australia. This partnership signifies a step towards a more competitive and efficient hydrogen market with a global perspective.