Prager Energy (PLUG), a leading U.S. company in the hydrogen fuel industry, announced that it has acquired the assets of ReliOn, a Washington State-based company specializing in hydrogen fuel cell stack technology and fuel cell system development.

Six days ago, SAIC and Volkswagen just signed a joint statement in Germany to launch cooperation on fuel cell technology. Japan’s two major automakers, Toyota and Honda, have also announced their plans to enter a new “battlefield.” In 2015—the year fuel cell vehicles were officially launched—annual sales were projected to reach 1,000 units.

Hydrogen fuel cells have suddenly come back into the spotlight overnight.

The carbon emissions from Chinese electric vehicles are higher than those from traditional cars.

SAIC is currently the only Chinese automaker truly engaged in hydrogen energy R&D. “Hydrogen-powered vehicles represent the ultimate goal for new-energy vehicles,” says Gan Pin, General Manager of the New Energy and Technology Management Department at SAIC Motor. Compared to today’s popular battery-electric vehicles, hydrogen fuel cells can address the heavy burdens—such as limited range and poor stability—that currently plague BEVs. As the issue of hydrogen supply is resolved, hydrogen fuel cell vehicles will eventually replace battery-electric vehicles altogether.

“Hybrid vehicles are the short-term goal, pure electric vehicles are the mid-term goal, and hydrogen fuel cells represent the ultimate goal for new-energy vehicles. SAIC had already identified new-energy vehicles as a key priority in its “12th Five-Year Plan.”

In an internal presentation, Gan Pin argued that Tesla has a revolutionary side, yet it’s fundamentally not revolutionary at all. Although Tesla has indeed introduced many innovative practices to the automotive industry—such as new design philosophies, vehicle architectures, and marketing strategies—it still hasn’t managed to break through the common bottlenecks faced by electric vehicles.