Chinese Electrolyzer Prices Undercut Western Competitors
Chinese electrolyzer prices are now approximately 25% of those in Europe and North America, raising competitive concerns. The International Energy Agency's Global Hydrogen Review 2026 indicates that prices for alkaline electrolyzer stacks in China have dropped to below $80 per kilowatt, while Western counterparts range from $290 to $380 per kilowatt.
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The price of alkaline electrolyzers in China has fallen significantly due to intense domestic competition, with over 200 manufacturers vying for orders. In 2025, demand resulted in only 4.7 gigawatts booked, despite a production capacity of 35 gigawatts.
The ten largest companies capture 70% of orders, leaving many manufacturers without any sales. To combat pricing wars, 40 Chinese firms agreed to cease below-cost bidding. As competition shifts from pricing to performance metrics, the European market remains challenged, with costs for electrolyzer systems ranging from $556 to $582 per kilowatt. The sustainability of low Chinese prices remains uncertain, as many manufacturers continue to operate at a loss.
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