Alkaline hydrogen production composite diaphragm manufacturer Kework Technology has raised tens of millions of yuan in a Pre-A funding round, led by Linear Capital.

36Kr Carbon has learned that Kewoke Technology, a manufacturer and R&D firm for alkaline hydrogen production composite membranes, recently completed a Pre-A funding round of tens of millions of RMB. This round was led by Linear Capital, with existing shareholder K2VC following on. Mingde Capital continued to serve as the exclusive financial advisor. The proceeds will be used primarily for product R&D, expansion of production lines and supporting facilities, and team growth.

Kewoke Technology is an innovative hydrogen energy company that 36Kr Carbon has been tracking. Founded in 2019, the company focuses on membrane technology. Its founder, Jianhua Yi, is a veteran materials expert who spent over a decade in the membrane industry before entering the new energy sector, bringing extensive R&D and production experience. Against the backdrop of carbon neutrality, hydrogen is both an important industrial feedstock and a key component of future energy systems — particularly green hydrogen, which is low-carbon and environmentally friendly and currently in a phase of rapid development. As the most important method of green hydrogen production, water electrolysis for hydrogen production has entered a period of explosive growth with substantial market potential. Take electrolyzers, the core equipment for water electrolysis: according to a CICC report, domestic demand for electrolyzers is expected to exceed 2 GW in 2023, representing a market of 3.8 billion RMB. By 2028, domestic electrolyzer demand will surpass 40 GW, with new market space projected to exceed 50 billion RMB.

Among different hydrogen production technology routes, alkaline water electrolysis (ALK) is currently the preferred path for industrial commercialization. Compared with proton exchange membrane (PEM), anion exchange membrane (AEM), and solid oxide (SOEC) technologies, ALK's main advantages lie in its high technological maturity, lower hydrogen production costs, longer service life, and higher single-electrolyzer hydrogen output. Therefore, ALK is better suited for large-scale industrial hydrogen production applications.

Kewoke Technology's focus is precisely on ALK composite membranes for alkaline hydrogen production. ALK primarily uses high-concentration potassium hydroxide solution as the electrolyte; the membrane, immersed in this solution, physically separates hydrogen and oxygen. The membrane is one of the core components of an electrolyzer, and its conductivity and gas barrier properties directly affect electrolyzer performance and hydrogen production efficiency. The industry has already phased out the first-generation, high-pollution asbestos membranes and is currently transitioning from second-generation membranes (specialty engineering plastic PPS) to third-generation membranes (composite membranes).

For many years, composite membranes were dominated by the Belgian company AGFA, making composite membrane technology subject to "chokepoint" risks and ripe for domestic substitution. Jianhua Yi told 36Kr Carbon that after three years of R&D, Kewoke Technology successfully developed the K-series, a domestically produced third-generation composite membrane for alkaline hydrogen production, in its laboratory by the end of 2021, and has since continued to break through core technical challenges in formulation and equipment.

Notably, in early 2023, Kewoke Technology's third-generation K-series composite membrane achieved mass production, making the company the first in China to domestically mass-produce composite membranes. Yi explained that the K-series membrane products feature low areal resistance, excellent gas barrier properties, stable structure with high pressure resistance, and long service life — performance that ranks at the international leading level.

Improving the safety, stability, and other performance characteristics of its membrane products is a continued focus of Kewoke Technology's R&D efforts. According to the company, Kewoke Technology's R&D team conducts micro-iterations of its products on a weekly basis, striving to push the boundaries of various performance metrics. Particularly in terms of stability, Kewoke Technology has made significant progress, achieving reliable data validation over an eight-month period.

On top of optimizing performance, the ability to continuously improve product cost-effectiveness is one of Kewoke Technology's key strengths. Currently, Kewoke Technology's products are priced far below AGFA's, with further room for cost reduction. Yi told 36Kr Carbon that the company can pursue cost reductions from three directions: first, upstream raw materials, particularly additives and auxiliary materials beyond the main materials; second, process optimization, through refined management of the pre-slurry preparation and water treatment stages to reduce energy consumption and address uniformity issues; and third, production scale, improving cost-effectiveness by increasing capacity.

On the commercialization front, Kewoke Technology's K-series membrane products are currently operational in alkaline hydrogen production electrolyzers at major customers, including large petrochemical institutions, hydrogen energy equipment companies, and listed companies. Yi revealed that compared to the same period last year, the company's revenue has grown more than tenfold, and its factory space has expanded from 1,000 square meters to 6,000 square meters. The company is now intensively preparing wide-format, large-scale membrane production lines, aiming to achieve stable production by the end of 2023 and ensure consistent supply to downstream customers.

"Do the right thing at the right stage." In Yi's view, the hydrogen energy industry is still in its early stages of development, and the company should focus on building internal capabilities, concentrating on membrane product R&D and production under a single technology route, and pushing product quality to the extreme. "Delivering high-quality membrane products that meet customer needs is the company's most pressing priority."

Investor Perspectives:

Yingzhe Zeng, Partner at Linear Capital: Green hydrogen is a crucial vehicle for China to achieve its "dual carbon" goals, and also an important channel for enabling large-scale renewable energy consumption, with broad market prospects. Among these, alkaline water electrolysis technology has been developing for over 20 years, with processes trending toward maturity. As the key component determining electrolyzer performance, the membrane's properties affect the purity of produced gas and the energy consumption of hydrogen production, largely determining the electrolyzer's economics, safety, and environmental adaptability.

The Kewoke team, drawing on deep understanding and rich experience in electrochemistry and membrane technology, independently developed a third-generation composite membrane with excellent gas barrier properties, stability, and low energy consumption, and was the first to complete the exploration and implementation of mass production processes. Over the past six months, we have also witnessed the Kewoke team demonstrate exceptional execution capability. They are outstanding entrepreneurs whom we will continue to back, and we hope that Linear Capital and the Kewoke team can together make positive contributions to the upgrade and transformation of China's energy structure.

Yang Zhao, Managing Partner at K2VC: Under the "dual carbon" framework, water electrolysis for hydrogen production (especially alkaline water electrolysis) is the make-or-break factor for the entire hydrogen industry's breakthrough, and the membrane is the most critical key to this. Based on this conviction, K2VC angel-invested in Kewoke Technology last year, and over the past year of working alongside the company, we have been pleased to witness their rapid growth and continuous product iteration. K2VC's continued investment in this round also reflects our confidence in the team's next steps in product R&D and production line expansion. We look forward to Kewoke contributing to the development of domestic green hydrogen and becoming a leader in critical materials for the hydrogen energy industry.

Yu Liu, Partner at Mingde Capital: We are delighted to have long accompanied and witnessed Kewoke Technology's growth. Hydrogen energy is the cleanest and most promising long-term track among new energy sources. Alkaline hydrogen production is a relatively mature and more readily scalable hydrogen production route. Considering hydrogen production efficiency and economic benefits, composite membranes will inevitably gradually replace PPS fabric. Kewoke Technology is currently the leader in China's composite membrane field, and its R&D team conducts micro-iterations on a weekly basis, striving to push the boundaries of various performance metrics and pursuing excellence.

Founder Jianhua Yi's innovative spirit in formulation and equipment design, combined with his cautious and conscientious approach to technology industrialization and commercialization, are deeply impressive. We believe that as domestic hydrogen energy core technology companies like Kewoke Technology emerge, China's hydrogen energy sector will inevitably experience a wave of strong growth, and Kewoke Technology will become the undisputed leading enterprise in the membrane field.

**| **Header image source: IC photo