German tech company Schaeffler has established a new subsidiary, Schaeffler Hydrogen Technologies, in Shanghai, China, focusing on the research, development, and production of PEM and AEM electrolysis stacks. Leveraging the parent company's expertise in manufacturing key components for fuel cells and electrolysers, the subsidiary aims to advance hydrogen technologies. The move reflects Schaeffler's commitment to increasing R&D efforts and promoting the hydrogen energy industry. By integrating into China's supply chain system, the subsidiary aims to contribute to the industry's localisation and growth. Concerns about China's potential dominance in the hydrogen sector arise due to its significant share of the global electrolyser manufacturing capacity. Reports suggest Chinese electrolyser manufacturers could capture a substantial portion of global orders, especially outside traditional markets. This development signifies a growing trend towards consolidation in the electrolyser value chains, with horizontal and vertical integration accelerating. By 2030, the industry is expected to witness significant consolidation, potentially reshaping the market dynamics and competition.