Hunterbrook alleges Bloom Energy depends on China for scandium, a key fuel cell material, challenging its supply chain claims.
Bloom Energy (NYSE:BE) shares fell over 5% after hedge fund-backed short seller Hunterbrook published allegations that the company relies on China for scandium, a critical material in its fuel cells. The report contradicts management’s denials and raises concerns about supply chain transparency.
The company’s 5-gigawatt production target could require approximately 220 tons of scandium oxide, nearly depleting projected global annual supply. Bloom Energy has surged 950% over the past year, driven by its AI-related growth narrative, but the allegations threaten to undermine investor confidence.
Premarket trading saw a 6% rebound, reflecting the market’s tendency to dismiss short seller reports quickly, though historical precedent shows some such reports later prove accurate.