Freudenberg Dissolves e-Power Systems Division, Maintains Hydrogen Components Business

Freudenberg has reorganized its alternative energy portfolio, dissolving the e-Power Systems Business Group effective January 1, 2026. The division's battery cell, module, and fuel cell systems operations are being discontinued, while the hydrogen components business remains active and has been transferred to Freudenberg Sealing Technologies.

Approximately 600 employees, largely based in the United States, were affected by the restructuring. According to the company, the market for batteries and fuel cells in the United States developed significantly slower than anticipated, citing weak demand in core applications, insufficient infrastructure—particularly for hydrogen—high costs, and political and regulatory uncertainties as key factors.

The company attributed additional challenges to global competitive pressures and limited scaling opportunities that complicated the systems business economically.

Freudenberg reported 2025 sales of €11.73 billion and operating profit of €1.09 billion, demonstrating financial stability despite the restructuring. The company invested €579.5 million in research and development during the year, representing 4.9 percent of sales. The hydrogen components business continuation reflects Freudenberg's strategic decision to maintain operations in this segment despite broader portfolio adjustments.

Originally reported by Hydrogen Central. Read the full article →