Shares in ITM Power have increased by over a third after the company announced a strategic collaboration with German defence technology group, Rheinmetall.

The partnership will focus on the German firm’s Giga PtX project, which aims to establish a Europe-wide network of decentralised synthetic fuel production plants for the NATO armed forces.

The project envisages the deployment of several hundred decentralised production plants across Europe, each with an electrolysis capacity of up to 50 MW, capable of producing approximately 5,000 to 7,000 tonnes of e-fuel per annum per facility.

ITM said that combining its electrolyser systems and Rheinmetall’s Power-to-X expertise, the parties are "bringing together their capabilities, know-how and strong market reputation". The collaboration will initially focus on the UK.

Chief executive officer at ITM Power, Dennis Schulz, stated: "Our collaboration with Rheinmetall aligns the energy transition with national security priorities. Reliable access to fuel is fundamental to defence capability, and decentralised production offers a structurally more resilient alternative to traditional supply chains.

"The Giga PtX project represents a repeatable deployment opportunity for large-scale electrolysers, while directly supporting sovereign fuel capability and operational readiness. By combining Rheinmetall's system integration capability and defence experience with our leading electrolyser technology, together we are well-positioned to deliver scalable solutions."

Head of hydrogen program at Rheinmetall, Shena Britzen, added: "e-Fuels are more than a technological solution - they are a strategic necessity. With Giga PtX, we are creating a scalable network that strengthens energy autonomy for Europe's defence forces. What matters is not just energy security, but the ability to act independently - in logistics, in operations, and in times of crisis."

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