Bloom Energy Hit By Explosive Short Report Questioning China-Free Supply Claims

Key Points

Hunterbrook Media published an investigative report alleging Bloom Energy's CEO misled investors about the company's reliance on Chinese scandium, contradicting statements made during an April 2025 earnings call.
The report traces four separate supply routes from China to Bloom Energy, including direct shipments from Hunan Oriental Scandium to a Delaware plant, and indirect routes through Thailand, Japan, and South Korea.
Hunterbrook's supply-demand model warns of a looming global deficit for fuel-cell-grade scandium oxide, with Bloom Energy alone needing about 220 tons to meet Wall Street's production expectations, while total global supply is only around 240 tons.
Key projects in Bloom Energy's $20 billion backlog, including Oracle's Project Jupiter and an American Electric Power investment, are facing timeline delays, adding to the company's challenges.

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Bloom Energy Corp. Bloom Energy (BE) stock is facing downward pressure on Wednesday following an investigative report published by Hunterbrook Media.

Hunterbrook Capital disclosed that it holds a short position in Bloom Energy, including derivatives, alongside a long position in Nebius Group Nebius Group (NBIS).

Executive Supply Chain Claims Contradicted

The decline follows findings by Hunterbrook challenging statements made by Bloom Energy CEO KR Sridhar regarding the company's independence from Chinese materials.

Sridhar stated during an April 2025 earnings call, "We are not dependent on China for scandium," adding, "there is no China supply chain for us."

However, global trade data, corporate filings, and satellite imagery analyzed by the news outlet indicate that the fuel-cell manufacturer continues to rely on Chinese-sourced scandium, said Hunterbrook.

Hidden Routes And Supplier Connections

Hunterbrook traced four separate China-linked routes delivering scandium into the manufacturer's supply chain.

Deliveries involve direct shipments of scandium oxide from Hunan Oriental Scandium to a Delaware plant, as well as intermediaries routing materials through Thailand, Japan, and South Korea.

A sales representative from Hunan Oriental Scandium told reporters, "We are also BE's largest supplier of scandium," noting the material is "not exported directly."

Widening Deficits And Delayed Projects

Hunterbrook's supply-demand model indicates a looming global deficit for fuel-cell-grade scandium oxide.

The research shows Bloom Energy alone requires roughly 220 tons of scandium oxide to meet the 5 gigawatt production expectations modeled by Wall Street, while the total projected global supply reaches approximately 240 tons.

Additionally, key projects driving the company's $20 billion backlog, including Oracle Corp.'s Oracle (ORCL) Project Jupiter in New Mexico and an American Electric Power Company Inc. American Electric Power (AEP) investment, are facing timeline delays.

Bloom Energy did not immediately respond to a request for comment.

BE Stock Price Activity: Bloom Energy shares were down 9.89% at $242.91 at the time of publication on Wednesday, according to market data.

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